Cabinet approves Minimum Support Prices (MSP) for Raw Jute for 2025-26 Season

The Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Shri Narendra Modi, has sanctioned the Minimum Support Prices (MSP) for Raw Jute for the marketing season 2025-26.

The Minimum Support Price for Raw Jute (TD-3 grade) has been set at Rs.5,650/- per quintal for the 2025-26 season. This would guarantee a return of 66.8 percent over the all-India weighted average production cost. The sanctioned MSP for raw jute for the marketing season 2025-26 aligns with the guideline of setting MSP at a minimum of 1.5 times the all-India weighted average production cost as declared by the Government in the 2018-19 Budget.

The MSP of Raw Jute for the marketing season 2025-26 represents a rise of Rs.315/- per quintal compared to the prior marketing season 2024-25. The Government of India has raised the MSP of Raw jute from Rs. 2,400/- per quintal in 2014-15 to Rs. 5,650/- per quintal in 2025-26, marking an increase of Rs. 3250/- for each quintal (2.35 times).

The MSP provided to farmers cultivating Jute from 2014-15 to 2024-25 was Rs. 1300 Crore, whereas from 2004-05 to 2013-14, the total disbursed was Rs. 441 Crores.

The Jute Industry directly or indirectly supports the livelihoods of 40 lakh farming families. Approximately 4 Lakh workers are directly employed in Jute mills and the Jute trade. The previous year, jute was sourced from 1 lakh 70 thousand farmers. Eighty-two percent of jute farmers are from West Bengal, whereas Assam and Bihar each account for 9% of jute production. The Jute Corporation of India (JCI) will remain the Central Government’s Nodal Agency to carry out Price Support Operations, and any losses incurred during these operations will be fully compensated by the Central Government.