The Union Cabinet has approved a higher minimum support price (MSP) for raw jute for the 2026-27 marketing season, raising the benchmark rate to Rs 5,925 per quintal to ensure remunerative returns for farmers.
The MSP for TD-3 grade raw jute has been fixed at Rs 5,925 per quintal, representing an increase of Rs 275 per quintal over the 2025-26 marketing season. The revised price is estimated to provide a return of 61.8% over the all-India weighted average cost of production.
The government said the MSP continues to follow the policy of fixing support prices at least 1.5 times the weighted average cost of production, a principle announced in the Union Budget 2018-19.
The MSP for raw jute has risen from Rs 2,400 per quintal in 2014-15 to Rs 5,925 per quintal for 2026-27 — an increase of Rs 3,525 per quintal, or about 2.5 times over the period, the statement noted.
According to the government, MSP payments made to jute growers between 2014-15 and 2025-26 amounted to Rs 1,342 crore, compared with Rs 441 crore disbursed during 2004-05 to 2013-14.
The Jute Corporation of India (JCI) will continue to act as the central nodal agency for price support operations, with any operational losses fully reimbursed by the Centre, the statement said.
