Cabinet Committee has approved the Minimum Support Price (MSP) for raw jute for the 2026–27 marketing season, a move expected to provide stronger price assurance to jute growers across the country.
For the 2026–27 season, the MSP of TD-3 grade raw jute has been set at ₹5,925 per quintal. According to the government, this ensures a return of 61.8% over the all-India weighted average cost of production. The decision aligns with the policy announced in the 2018–19 Union Budget, which mandates fixing MSP at a minimum of 1.5 times the cost of production.
The newly approved MSP is ₹275 per quintal higher than the rate announced for the 2025–26 marketing season. Over the longer term, the MSP for raw jute has seen a substantial rise—from ₹2,400 per quintal in 2014–15 to ₹5,925 per quintal in 2026–27. This marks an overall increase of ₹3,525 per quintal, reflecting nearly a two-and-a-half-fold growth over the period.
Official figures indicate that between 2014–15 and 2025–26, jute farmers received ₹1,342 crore under MSP operations. In comparison, the total payment made during 2004–05 to 2013–14 stood at ₹441 crore. The data highlights a significant rise in financial support extended to jute cultivators in recent years.
JCI to Continue Price Support Operations:
The Jute Corporation of India (JCI) will continue to function as the central government’s nodal agency for carrying out price support operations. Any financial losses incurred during procurement will be fully reimbursed by the Centre. The decision is being seen as an important step toward ensuring income stability for jute farmers and safeguarding them against market fluctuations.
FAQs:
1. What is the MSP for raw jute for 2026–27?
The MSP for TD-3 grade raw jute is ₹5,925 per quintal.
2. How much has the MSP increased this year?
The MSP has increased by ₹275 per quintal compared to 2025–26.
3. What return does the new MSP ensure?
It ensures a 61.8% return over the cost of production.
4. Which agency handles MSP procurement of raw jute?
The Jute Corporation of India (JCI) manages procurement operations.
5. Why is MSP important for jute farmers?
MSP provides price assurance and protects jute farmers from market volatility.
