The Union Cabinet has increased the minimum support price (MSP) for raw jute by Rs 315, setting it at Rs 5,650 per quintal for the 2025-26 marketing season.
This would ensure a return of 66.8 per cent over the all-India weighted average cost of production, it is believed.
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The approved MSP of raw jute for the 2025-26 marketing season is in line with the principle of fixing MSP at a level of at least 1.5 times the all-India weighted average cost of production, as announced by the government in the Budget 2018-19.
About 4 lakh workers get direct employment in jute mills and trade in jute. Last year, jute was procured from 1.7 lakh farmers. Eighty-two per cent of the Jute farmers belong to West Bengal, while Assam and Bihar each contribute 9% to the jute production share.
Notably, the livelihood of 40 lakh farm families directly or indirectly depends on the jute industry.
Union Minister Piyush Goyal emphasised that production ultimately depends on farmers’ decisions.
“Jute production depends on various conditions and is gaining acceptance as a sustainable product. We have consistently encouraged farmers to grow jute and assure them that it will be purchased at MSP. However, the output and production of jute will ultimately depend on the farmers’ interest in what product provides them with the best value,” he said.
The MSP of raw jute for the 2025-26 marketing season has been increased by Rs 315 per quintal compared to the previous 2024-25 season. The Government of India has increased the MSP of raw jute from Rs 2400 per quintal in 2014-15 to Rs 5,650 per quintal in 2025-26, registering an increase of Rs 3250 per quintal (2.35 times).
The MSP amount paid to jute-growing farmers during the period 2014-15 to 2024-25 was Rs 1,300 crore, while during the period 2004-05 to 2013-14, the amount paid was Rs 441 crore.
