Jute MSP Announcement for 2025-26
The Cabinet Committee on Economic Affairs (CCEA) has announced the Minimum Support Price (MSP) for raw jute for the 2025-26 marketing season.
Key Details
- The MSP is set at ₹5,650 per quintal, marking an increase of ₹315 per quintal over the 2024-25 price.
- This new price ensures a return of 66.8% over the average cost of production.
- The decision aligns with the principle of fixing MSP at least 1.5 times the all-India weighted average cost of production, a policy initiated in the Budget 2018-19.
Historical Context
- MSP for raw jute has increased from ₹2,400 per quintal in 2014-15 to ₹5,650 per quintal in 2025-26, a total increase of ₹3,250 per quintal (2.35 times).
- The government has paid ₹1,300 crore to jute farmers between 2014-15 and 2024-25, compared to ₹441 crore during 2004-05 to 2013-14.
Economic and Social Impact
- The livelihood of 40 lakh farm families is dependent on the jute industry.
- Approximately four lakh workers are directly employed in jute mills and trade.
- Jute procurement last year involved 1.70 lakh farmers.
Regional Distribution
- About 82% of jute farmers are based in West Bengal.
- The remaining production is shared equally by Assam and Bihar, each holding a 9% share.
Operational Details
- The Jute Corporation of India (JCI) will continue as the nodal agency for price support operations.
- The Union government will fully reimburse any losses incurred by JCI during these operations.
