New Delhi: The Cabinet Committee on Economic Affairs (CCEA) on Tuesday approved the Minimum Support Price (MSP) for raw jute at Rs 5,925 per quintal for the 2026-27 marketing season, an increase of Rs 275 over the previous season.
The decision will benefit jute growers, especially in West Bengal and Assam, Information and Broadcasting Minister Ashwini Vaishnaw told reporters after the meeting.
India is one of the largest producers of raw jute in the world.
This was one of the decisions taken by the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, in its first meeting at the Prime Minister’s new office, Seva Teerth.
The approved MSP, fixed for TD-3 grade raw jute, will ensure a return of 61.8 per cent over the all-India weighted average cost of production to the growers, an official statement said.
The decision is in line with the government’s principle of fixing MSP at least 1.5 times the all-India weighted average cost of production, as announced in the Union Budget 2018-19.
Since 2014-15, the MSP of raw jute has been increased from Rs 2,400 per quintal to Rs 5,925 per quintal in 2026-27, registering a rise of Rs 3,525 per quintal, or 2.5 times, the statement said.
The MSP amount paid to jute-growing farmers in 2014-15 to 2025-26 stood at Rs 1,342 crore compared to Rs 441 crore paid during 2004-05 to 2013-14.
The Jute Corporation of India (JCI) will continue as the central government’s nodal agency to undertake Price Support Operations.
Any losses incurred in such operations will be fully reimbursed by the central government, it said.
