Govt approves MSP for raw jute at Rs 5,925 per quintal for 2026-27 season
The decision is expected to strengthen India’s eco-friendly fibre ecosystem
The Centre on Tuesday fixed the minimum support price of raw jute at Rs 5,925 per quintal for the 2026-27 season.
The decision holds significance as the move will be beneficial for farmers in major jute-producing states of West Bengal and Assam, which are going to the polls this year.
West Bengal is India's premier jute-producing state, contributing roughly 80 per cent of the nation's total raw jute cultivation and over 90 per cent of its manufactured goods.
Whereas, Assam is the third-largest producer of raw jute in the country, contributing significantly to the nation's "golden fibre" output, with major cultivation in districts like Nagaon, Goalpara, Barpeta, and Darrang.
The decision was made by the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi.
"The minimum support price (MSP) of raw jute (TD-3 grade) has been fixed at Rs 5,925 per quintal for the 2026-27 season. This would ensure a return of 61.8 per cent over the all-India weighted average cost of production," the government said.
It said the announced MSP is in line with the principle of fixing MSP at a level of at least 1.5 times all India weighted average cost of production as announced in the Budget 2018-19.
The MSP of raw jute for the marketing season 2026-27 is an increase of Rs 275 per quintal over the 2025-26 season.
The government has increased MSP of raw jute from Rs 2,400 per quintal in 2014-15 to Rs 5,925 per quintal in 2026-27, registering an increase of Rs 3,525 per quintal.
The Centre also said that an amount of Rs 1,342 crore was spent on MSP for jute growing farmers during the period of 2014-15 to 2025-26, while Rs 441 crore was paid for the same from 2004-05 to 2013-14.
The Jute Corporation of India serves as the central government nodal agency to undertake price support operations and any losses incurred during these operations will be fully reimbursed by the central government.
The decision is expected to strengthen India’s eco-friendly fibre ecosystem at a time when global demand for sustainable alternatives to plastics is steadily rising.
