New Delhi

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the Minimum Support Price (MSP) for raw jute at Rs 5,925 per quintal for the 2026-27 marketing year. The new MSP reflects an increase of Rs 275 per quintal compared to the previous season.

The decision is expected to benefit jute farmers, particularly in states such as West Bengal and Assam, Information and Broadcasting Minister Ashwini Vaishnaw said while briefing the media after the Cabinet meeting, which was held at the Prime Minister’s new office, Seva Teerth.

India remains one of the world’s leading producers of raw jute. The MSP has been fixed for TD-3 grade jute and is expected to provide farmers with a 61.8% return over the all-India weighted average cost of production, as per official statements.

The government follows the policy of fixing MSPs at least 1.5 times the average production cost, a principle announced in the Union Budget 2018-19.

Since 2014-15, the MSP for raw jute has risen significantly from Rs 2,400 per quintal to Rs 5,925 per quintal in 2026-27, marking an overall increase of Rs 3,525 per quintal, or nearly 2.5 times.

Official data also shows that jute farmers received Rs 1,342 crore through MSP procurement operations between 2014-15 and 2025-26, compared to Rs 441 crore during 2004-05 to 2013-14.

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The Jute Corporation of India (JCI) will continue to act as the central government’s nodal agency for price support operations. Any financial losses incurred during procurement activities will be fully reimbursed by the government.