Union Cabinet Approves Higher Minimum Support Price for Raw Jute
The Union Cabinet has given its approval for an increased minimum support price (MSP) for raw jute, specifically targeting the TD-3 grade, for the upcoming 2026-27 marketing season. This decision raises the benchmark rate to Rs 5,925 per quintal, aimed at ensuring remunerative returns for jute farmers across India.
Details of the MSP Increase
The newly fixed MSP of Rs 5,925 per quintal represents a significant hike of Rs 275 per quintal compared to the 2025-26 marketing season. According to government estimates, this revised price is projected to provide farmers with a return of 61.8% over the all-India weighted average cost of production. This move continues the government's policy, announced in the Union Budget 2018-19, of setting support prices at least 1.5 times the weighted average cost of production to safeguard farmer incomes.
Historical Context and Growth
Over the years, the MSP for raw jute has seen substantial growth. From Rs 2,400 per quintal in 2014-15, it has now reached Rs 5,925 per quintal for 2026-27. This marks an increase of Rs 3,525 per quintal, or approximately 2.5 times over this period, highlighting the government's ongoing efforts to enhance farmer welfare through price support mechanisms.
Financial Impact and Support Mechanisms
The government has disclosed that MSP payments to jute growers between 2014-15 and 2025-26 totaled Rs 1,342 crore, a sharp rise from the Rs 441 crore disbursed during the previous decade from 2004-05 to 2013-14. To facilitate these operations, the Jute Corporation of India (JCI) will continue to serve as the central nodal agency for price support. Any operational losses incurred by JCI will be fully reimbursed by the Centre, ensuring smooth implementation and support for the jute sector.
This approval underscores the government's commitment to strengthening the agricultural economy and providing stable income opportunities for jute farmers, aligning with broader national goals of rural development and economic sustainability.
