NEW DELHI, 3 March 2026: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the Minimum Support Price (MSP) for raw jute for the 2026–27 marketing season.
The MSP of raw jute (TD-3 grade) has been fixed at INR 5,925 per quintal for the 2026–27 season. The revised price ensures a return of 61.8% over the all-India weighted average cost of production, in line with the government’s policy of fixing MSP at a minimum of 1.5 times the cost of production, as announced in the Union Budget 2018–19.
INR 275 Per Quintal Increase Over Previous Season
The newly approved MSP marks an increase of INR 275 per quintal over the 2025–26 marketing season. Since 2014–15, the MSP of raw jute has risen from ₹2,400 per quintal to ₹5,925 per quintal in 2026–27 — an overall increase of INR 3,525 per quintal, or nearly 2.5 times.
Officials stated that the enhanced MSP aims to safeguard farmer interests, ensure remunerative prices and promote sustained jute cultivation in key producing states.
Higher Procurement Support for Farmers
The government highlighted that between 2014–15 and 2025–26, a total of ₹1,342 crore was paid to jute-growing farmers under MSP operations. This is significantly higher compared to INR 441 crore disbursed during the 2004–05 to 2013–14 period.
The Jute Corporation of India will continue as the Central Government’s nodal agency for undertaking Price Support Operations. Any losses incurred during procurement will be fully reimbursed by the Central Government.
The decision is expected to provide price stability to jute growers while strengthening India’s natural fibre sector amid growing domestic and global demand for sustainable packaging materials.
Image credit: jute.guru
