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Centre Approves Jute MSP Hike, Greenlights Key Railway Projects

The Cabinet Committee on Economic Affairs has approved a Minimum Support Price (MSP) of Rs 5,925 per quintal for raw jute for the 2026-27 marketing season, marking an increase of Rs 275 from the previous year. This ensures a return of 61.8% over the all-India weighted average cost of production, continuing the policy of fixing MSP at 1.5 times the cost. In a separate decision, the cabinet also approved three crucial railway projects with a total estimated cost of about Rs 9,072 crore. These multi-tracking projects, spanning 307 km across four states, aim to significantly enhance rail connectivity for nearly 98 lakh people in over 5,400 villages.

Key Points: Cabinet Approves Jute MSP Hike & Rs 9,072 Cr Railway Projects

  • Jute MSP hiked to Rs 5,925/quintal
  • Ensures 61.8% return over production cost
  • MSP increased 2.5 times since 2014-15
  • Three railway projects worth Rs 9,072 crore approved
  • Projects to add 307 km network, connect 98 lakh people
2 min read

Centre approves hike in jute MSP

Govt hikes jute MSP for 2026-27, ensures 61.8% return for farmers. Cabinet also approves three major railway projects worth Rs 9,072 crore.

"ensure a return of 61.8 per cent over the all India weighted average cost of production - Government Statement"

New Delhi, February 24

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Tuesday approved Minimum Support Prices of Raw Jute for Marketing season 2026-27.

The MSP of Raw Jute (TD-3 grade) has been fixed at Rs 5,925 per quintal for 2026-27 season.

The government said this would ensure a return of 61.8 per cent over the all India weighted average cost of production.

The announced MSP of raw jute for Marketing season 2026-27 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 by the Government in the Budget 2018-19.

The MSP of Raw Jute for Marketing season 2026-27 is an increase of Rs 275 per quintal over the previous Marketing season 2025-26.

Government has increased MSP of Raw jute from Rs 2400 per quintal in 2014-15 to Rs 5,925 per quintal in 2026-27, registering an increase of Rs 3,525 per quintal (2.5 times).

The MSP amount paid to Jute growing farmers during the period 2014-15 to 2025-26 was Rs 1342 Crore while during the period 2004-05 to 2013-14, amount paid was Rs 441 Crore.

The Jute Corporation of India (JCI) will continue as Central Government Nodal Agency to undertake Price Support Operations and the losses incurred, if any, in such operations, will be fully reimbursed by the Central Government.

The Cabinet Committee on Economic Affairs today also approved three railway projects with a total cost of about Rs 9,072 crore.

These projects include Gondia - Jabalpur Doubling; Punarakh - Kiul 3rd and 4th line; and Gamharia - Chandil 3rd and 4th line.

The 3 (three) projects covering 8 Districts across the states of Maharashtra, Madhya Pradesh, Bihar and Jharkhand will increase the existing network of Indian Railways by about 307 Kms.

The proposed multi-tracking project will enhance connectivity to approximately 5,407 villages, which are having a population of about 98 lakhs.

- ANI

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Reader Comments

S
Sarah B
While the MSP increase is positive, I hope the focus is also on sustainable farming practices. Jute is an eco-friendly fiber, and supporting its farmers is crucial for promoting green alternatives to plastic. The railway projects alongside this are a good sign of integrated infrastructure development.
A
Aditya G
From Rs 2400 to Rs 5925 in about 12 years is a significant jump. Shows a consistent policy. However, the real challenge is often the middlemen and timely procurement by JCI. If that is streamlined, this will be a game-changer for the rural economy in the jute belt.
P
Priyanka N
Good to see the government backing a natural fiber industry. The railway projects in the same meeting are also important - better connectivity means farmers can get their produce to markets more easily. It's all connected. Hope the 98 lakh people in those villages see real benefits.
K
Karthik V
The numbers look impressive on paper – Rs 1342 crore paid since 2014-15 versus Rs 441 crore in the previous decade. But we must ask: is this increase keeping pace with the actual rise in input costs like fertilizers and labor? A respectful criticism – the MSP should be reviewed more frequently to match inflation.
M
Michael C
Supporting the jute sector is smart economics and environmental policy. It's a renewable resource. The approval of railway lines in the same states (Bihar, Jharkhand) where jute is grown could be strategic, improving logistics for the agricultural supply chain. Long-term thinking is evident here.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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