The Union Cabinet, on January 22, 2025, approved a Minimum Support Price (MSP) of ₹5,650 per quintal for raw jute for the 2025-26 marketing season.
This represents a 6% hike, or ₹315, over the previous MSP. Commerce and Industry Minister Piyush Goyal announced this decision following a Cabinet meeting chaired by Prime Minister Narendra Modi.
The new MSP guarantees a 66.8% return over the all-India weighted average cost of production, benefiting farmers.
Since 2014-15, the MSP for raw jute has risen from ₹2,400 to ₹5,650 per quintal, marking a 2.35-fold increase.
The Minimum Support Price (MSP) for raw jute (TD-3 grade) has been set at ₹5,650 per quintal for the 2025-26 season.
This will guarantee a 66.8% return on the all-India weighted average cost of production.
The approved MSP for raw jute for the 2025-26 marketing season follows the government’s principle of setting MSP at least 1.5 times the all-India weighted average cost of production, as outlined in the 2018-19 Budget.
The MSP of raw jute for the 2025-26 marketing season is Rs 315 per quintal higher than the previous 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 3,250 per quintal (a 2.35 times rise).
The MSP amount provided to jute-producing farmers from 2014-15 to 2024-25 was Rs 1300 crore, compared to Rs 441 crore given during 2004-05 to 2013-14.
The jute industry supports the livelihoods of 40 lakh farmer families, either directly or indirectly.
Around 4 lakh workers are directly employed in jute mills and trade. Last year, jute was bought from 1.7 lakh farmers.
West Bengal accounts for 82% of jute farmers, while Assam and Bihar each contribute 9% to the production.
The Jute Corporation of India (JCI) will remain the main agency of the Central Government for managing price support operations.
Any losses incurred during these operations will be fully reimbursed by the government.
