MSP of Raw Jute increased to Rs.5,650 per quintal for 2025-26 season

The Cabinet Committee on Economic Affairs (CCEA) has approved the minimum support price (MSP) of raw jute (TD-3 grade) for the agricultural marketing season 2025-26 at Rs 5650 per quintal. The meeting of the Cabinet Committee on Economic Affairs was held in New Delhi on 22 January 2025 and was chaired by Prime Minister Narendra Modi.

Increase of Rs 315 per quintal for Raw Jute in 2025-26 season 

The MSP of Rs.5,650/- per quintal for 2025-26 season is an increase of Rs 315 per quintal as compared to the 2024-25 season.

The government has been consistently increasing the MSP for raw jute over a period of time. In 2014-15 the MSP was Rs.2400 per quintal which has been increased to Rs.5,650/- per quintal in 2025-26. 

The MSP of Rs.5,650 per quintal in 2025-26 would ensure a return of 66.8 percent over the all India weighted average cost of production. 

About the Golden Fiber- Jute 

• Jute is also known as the golden fiber and India is the largest producer of raw jute in the world.
• In India ,Jute is the second most important cash crop after cotton.
• Jute is grown in six states of India- West Bengal, Assam, Bihar, Odisha, Tripura and Andhra Pradesh.
• West Bengal is the major producer of jute in India followed by Assam and Bihar.
• Around 40 lakh farming families are directly or indirectly dependent on Jute Industry.

Who buys Jute from Farmers 

• The government of  India owned Jute Corporation of India is mandated to buy  raw jute from the farmers on the MSP. 
• The Jute Corporation of India was set up by the Government of India in 1971 to buy raw jute/mesta without any quantitative restriction from the farmers on the announced MSP.

About Minimum Support Price 

In 1966-67 the government of India introduced Minimum Support Crop(MSP) for selected crops.

The minimum support price (MSP) is recommended by the Commission for Agricultural Costs & Prices (CACP) under the Union Ministry of Agriculture and Farmer Welfare.

However the government of India is not bound to accept the recommendation of the CACP. 

Crops under MSP

The  CACP recommends MSP for 22 mandated crops and a fair and remunerative price (FRP) for sugarcane. 

The mandated crops are;

• Cereals -Wheat, Paddy,  Maize, Sorghum,Barley, Ragi, Pearl millet
• Pulses- Chickpea / Gram, Tur, Urad, Lentil,Moong
• Oilseeds - Soybean, Sesame, Peanut, Rapeseed, Safflower, Niger seed and Sunflower
• Commercial crops -Copra,, Cotton, Raw Jute and Sugarcane

The Department of Agriculture and Cooperation, Government of India, fixes the MSP of the  Toria and De-Husked coconut based on the MSPs of Rapeseed/Mustard Seed and Copra, respectively. 

Also Read: Government hikes wheat MSP by Rs 150 per quintal for 2025-26 Rabi season