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Jute Farmers Get ₹5,925 MSP Boost, Income to Rise 2.5 Times Since 2014

The Union Cabinet has approved a significant increase in the Minimum Support Price for raw jute to ₹5,925 per quintal for the 2026-27 marketing season. Defence Minister Rajnath Singh announced the decision, stating it will enhance farmer income and promote economic empowerment. The new MSP represents a ₹275 per quintal increase over the previous season and ensures a return of 61.8 percent over the all-India weighted average cost of production. Since 2014-15, the government has increased the jute MSP by 2.5 times, from ₹2,400 to the newly announced ₹5,925 per quintal.

Key Points: Cabinet Approves Jute MSP Hike to ₹5,925 Per Quintal

  • MSP fixed at ₹5,925 per quintal
  • Ensures 61.8% return over production cost
  • ₹275 increase over previous season
  • Jute MSP has risen 2.5 times since 2014-15
  • JCI to conduct price support operations
2 min read

"MSP hike to boost Jute farmers' income, promote economic empowerment": Rajnath Singh

Union Cabinet hikes raw jute MSP to ₹5,925/quintal for 2026-27, ensuring 61.8% return over cost and boosting farmer income, announces Rajnath Singh.

"This decision will increase the income of jute farmers and promote the economic empowerment of farmers. - Rajnath Singh"

New Delhi, February 24

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an increase in the Minimum Support Price of raw jute to ₹5,925 per quintal, Defence Minister Rajnath Singh announced on Tuesday.

Sharing the decision in a post on X, the Defence Minister said the move would significantly enhance the income of jute farmers and strengthen their economic position.

"In the meeting of the Central Cabinet chaired by Prime Minister Shri @narendramodi, it has been decided to increase the MSP of raw jute by two and a half times to ₹5,925 per quintal. This decision will increase the income of jute farmers and promote the economic empowerment of farmers," Singh wrote.

The Cabinet Committee on Economic Affairs, chaired by PM Modi, on Tuesday approved Minimum Support Prices (MSP) of Raw Jute for the Marketing season 2026-27.

As per an official release from Ministry of Agriculture & Farmers Welfare, the 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 percent 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 the Marketing season 2026-27 is an increase of Rs 275/- per quintal over the previous Marketing season 2025-26. The government has increased the 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, the amount paid was Rs 441 Crore.

The Jute Corporation of India (JCI) will continue as the 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, a release added.

- ANI

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Reader Comments

R
Rohit P
A 2.5 times increase since 2014 is impressive on paper. But the real question is, with rising costs of fertilizers, diesel, and labor, will this MSP hike actually translate to better net income? The government must also ensure JCI has the capacity to procure at this price without delays.
A
Aman W
Good move! Promoting natural fibres like jute is also good for the environment compared to plastic. This should encourage more farmers to stick with jute farming. #GreenIndia
S
Sarah B
While the intent is good, I have a respectful criticism. Announcing MSP for 2026-27 now seems very far off. What about price stability for the upcoming seasons? Farmers need assurance for the immediate future as well. The long-term vision needs to be matched with short-term action.
K
Karthik V
The data showing payment of ₹1342 Cr vs ₹441 Cr in the previous decade is telling. Direct income support is vital. My uncle is a jute farmer in Odisha, and such policies make a real difference. Hope the trend continues. 👍
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Meera T
It's a positive step, but MSP is only one part of the puzzle. We need to focus on improving yield per hectare, providing better storage facilities, and creating more demand for jute products both domestically and for export. A holistic approach is needed for true empowerment.

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