Cabinet sets ₹5,650 MSP for raw jute in 2025-26

The Cabinet Committee on Economic Affairs (CCEA) headed by PM Narendra Modi has approved the Minimum Support Prices (MSP) of Raw Jute for Marketing season 2025-26 as per an official release.

MSP of Raw Jute (TD-3 grade) has been fixed at Rs 5,650 per quintal for 2025-26 season. This will give a return of 66.8% over all India weighted average cost of production.

At the Cabinet Briefing, Union Minister Piyush Goyal said CCEA has increased Minimum Support Price (MSP) of raw jute for 2025-26 to Rs 5,650 per quintal, 6% higher than last year.

According to the Minister, this increase in MSP will benefit around 1.70 lakh jute farmers directly and 40 lakh families associated with jute farming.

This is a big step towards income stability of jute farmers and financial sustainability of jute industry.

MSP of raw jute for 2025-26 season is in line with the principle of fixing MSP at least 1.5 times all India weighted average cost of production as announced in Budget 2018-19.

MSP of Raw Jute for 2025-26 is Rs 315 per quintal more than 2024-25. Government of India has increased MSP of Raw jute from Rs 2400 per quintal in 2014-15 to Rs 5,650 per quintal in 2025-26, an increase of Rs 3250 per quintal (2.35 times).

Amount paid to Jute growing farmers during 2014-15 to 2024-25 was Rs 1300 Crore and during 2004-05 to 2013-14 was Rs 441 Crore.

40 Lakh farm families directly or indirectly depend on Jute Industry. 4 Lakh workers get direct employment in Jute mills and trade in Jute, as per the release.

Last year jute was procured from 1 Lakh 70 thousand farmers. 82% of Jute farmers are from West Bengal and 9% each from Assam and Bihar.

Jute Corporation of India (JCI) will continue to be the Central Government Nodal Agency for Price Support Operations and any losses, if incurred, will be fully borne by the Central Government, as per the release.