Union Cabinet Greenlights Rs 275 Increase in Jute MSP for 2026-27
Synopsis
The Indian government has approved a significant increase in the Minimum Support Prices for raw jute, ensuring higher earnings for farmers in the upcoming marketing season. This decisive move reflects the government's ongoing commitment to support the agricultural sector.
Key Takeaways
The MSP for raw jute has been increased to Rs 5,925 per quintal.
This marks a Rs 275 increase from the previous year.
The increase ensures a 61.8% return over production costs.
The JCI will oversee price support operations.
West Bengal is the leading jute-producing state in India.
New Delhi, Feb 24 (NationPress) The Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, has sanctioned a hike of Rs 275 per quintal in the Minimum Support Prices (MSP) for raw jute for the marketing season 2026-27, marking an increase from the prior year's rates.
The MSP for raw jute (TD-3 grade) is now set at Rs. 5,925 per quintal, providing a substantial return of 61.8% over the all-India weighted average cost of production.
This MSP adjustment aligns with the government's commitment to establish MSP at a level of at least 1.5 times the all-India weighted average cost of production, as articulated in the Budget 2018-19, as per an official statement following the CCEA meeting.
The new MSP for raw jute signifies an increase of Rs 275 per quintal over the previous marketing season of 2025-26. From 2014-15, the MSP for raw jute has surged from Rs 2,400 per quintal to Rs. 5,925 per quintal, an impressive increase of Rs 3,525 per quintal, which translates to a 2.5 times rise.
During the period from 2014-15 to 2025-26, the total MSP amount disbursed to jute farmers reached Rs 1,342 crore, in stark contrast to Rs 441 crore allocated during the timeframe from 2004-05 to 2013-14.
The Jute Corporation of India (JCI) will remain the Central Government's Nodal Agency for executing price support initiatives. Any losses incurred during these operations will be fully compensated by the Central Government, as stated.
India stands as the world's leading producer of raw jute, with more than 99% of its production concentrated in West Bengal, Bihar, Assam, Odisha, and Andhra Pradesh. West Bengal alone accounts for over 80% of total output, benefiting from favorable alluvial soil and climate conditions, followed by Bihar and Assam.
Point of View
Reflecting a broader strategy to stabilize agricultural pricing and support economic growth in the sector.
NationPress
11 May 2026
Frequently Asked Questions
What is the new MSP for raw jute in 2026-27?
The new Minimum Support Price for raw jute (TD-3 grade) is set at Rs. 5,925 per quintal for the marketing season 2026-27.
How much has the MSP increased from the previous year?
The MSP has increased by Rs 275 per quintal compared to the previous marketing season of 2025-26.
What is the significance of this MSP increase?
This increase ensures a return of 61.8% over the all-India weighted average cost of production, benefiting farmers significantly.
Who will manage the price support operations for jute?
The Jute Corporation of India (JCI) will continue as the Nodal Agency to manage price support operations for jute.
Which states are the largest producers of raw jute in India?
The largest producers of raw jute in India are West Bengal, Bihar, Assam, Odisha, and Andhra Pradesh, with West Bengal being the predominant producer.
