New Delhi: The Union Cabinet has approved the MSP Raw Jute 2026-27 for the upcoming marketing season, providing higher returns to farmers.
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, fixed the Minimum Support Price for TD-3 grade raw jute at Rs 5,925 per quintal. This decision ensures a return of 61.8 percent over the all-India weighted average cost of production.
Importantly, the revised rate reflects the government’s commitment to fixing MSP at least 1.5 times the average cost of production. The Centre first announced this principle in the 2018-19 Union Budget. Therefore, the latest revision continues that policy framework.
Compared to the previous season, the MSP has increased by Rs 275 per quintal. In addition, the government has steadily raised support prices over the past decade. The MSP stood at Rs 2,400 per quintal in 2014-15. Now, it has risen to Rs 5,925 per quintal, marking an increase of Rs 3,525 per quintal. This represents nearly a 2.5-fold rise during the period.
Furthermore, the government has significantly expanded financial support to jute growers. Between 2014-15 and 2025-26, authorities paid Rs 1,342 crore as MSP to farmers. In contrast, payments during 2004-05 to 2013-14 totalled Rs 441 crore. Consequently, farmer support under price operations has increased substantially.
MSP Raw Jute 2026-27 strengthens farmer support
The Jute Corporation of India will continue to act as the central nodal agency for price support operations. It will procure raw jute whenever market prices fall below MSP levels. Moreover, the Central Government will fully reimburse any operational losses incurred during procurement.
The latest MSP decision aims to stabilise prices, protect farmer incomes and strengthen the jute sector. As global demand for eco-friendly fibre grows, the higher support price may also encourage increased cultivation.
Overall, the government expects the revised MSP to provide income assurance to lakhs of jute-growing farmers across major producing states.
