Centre increases MSP for jute; farmers in West Bengal, Assam to benefit

The Cabinet Committee on Economic Affairs (CCEA), after a meeting here on Tuesday (February 24, 2026), increased the minimum support price (MSP) of raw jute for 2026-27 by ₹275 per quintal over the previous season. The new rate is ₹5,925 per quintal. Briefing reporters after the meeting, Information and Broadcasting Minister Ashwini Vaishnaw said the increased MSP would benefit jute growers in States such as West Bengal and Assam.

In Frames: Jute — the golden fibre

Commenting on the decision, Prime Minister Narendra Modi said the Union Government was leaving no stone unturned to make the lives of jute farmers easier. “In this direction, our government has taken the important decision to increase the MSP of raw jute. This will not only boost its production and quality, but will also increase the income of farmers across the country associated with this sector,” Mr. Modi said in a social media post.

A statement issued by the government said the revised MSP, for TD-3 grade raw jute, would ensure a return of 61.8% to the farmers over the all-India weighted average cost of production. “The decision is in line with the government’s principle of fixing MSP at least 1.5 times the all-India weighted average cost of production, as announced in the Union Budget 2018-19. Since 2014-15, the MSP of raw jute has been increased from ₹2,400 per quintal to ₹5,925 per quintal in 2026-27, registering a rise of ₹3,525 per quintal, or 2.5 times,” the statement added.

“The MSP amount paid to jute growing farmers during the period 2014-15 to 2025-26 was ₹1,342 crore, while during the period 2004-05 to 2013-14, amount paid was ₹441 crore,” the government said, adding that the Jute Corporation of India (JCI) would continue as Central government nodal agency to undertake price support operations and the losses incurred, if any, in such operations, would be fully reimbursed by the Union government.