The Union Cabinet, led by Prime Minister Narendra Modi, has approved a significant increase in the Minimum Support Price (MSP) for raw jute, which is now set at Rs 5,925 per quintal. Defence Minister Rajnath Singh announced this decision on February 24, highlighting its positive impact on the income levels of jute farmers. This increase marks a notable rise, being more than two and a half times higher than the previous MSP.

Economic Empowerment for Jute Farmers

According to a post shared by Singh, the enhanced MSP is aimed at strengthening the financial standing of jute farmers. He stated, “This decision will increase the income of jute farmers and promote their economic empowerment.” The measure falls within the government’s broader commitment to assisting the agricultural sector and ensuring fair returns to farmers.

Details of the MSP Increase

The Cabinet Committee on Economic Affairs met to finalize the MSP for the 2026-27 marketing season. As per an official announcement from the Ministry of Agriculture and Farmers Welfare, the fixed MSP of raw jute (TD-3 grade) will provide a 61.8 percent return based on the all-India weighted average cost of production. This new MSP aligns with the long-standing principle of setting the MSP at 1.5 times the average cost of production, a policy established during the Budget announcement for 2018-19.

Comparison with Previous MSPs

The new MSP marks an increase of Rs 275 per quintal when compared to the previous year’s rate for the 2025-26 season. Since 2014-15, the government has progressively raised the MSP of raw jute from Rs 2,400 per quintal, totalling an increase of Rs 3,525 per quintal over the course of the last decade. This reflects a persistent effort to support jute farmers’ livelihoods through enhanced financial schemes.

Financial Support and Price Control Operations

During the financial years from 2014-15 to 2025-26, the government paid jute farmers a total of Rs 1,342 crore under the MSP initiative. This figure contrasts with Rs 441 crore paid to farmers in the earlier period from 2004-05 to 2013-14. The Jute Corporation of India (JCI) will act as the central government’s nodal agency for conducting Price Support Operations, with the assurance that any incurred losses will be reimbursed by the government.

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