Centre hikes MSP on jute by ₹315 per quintal

The Cabinet Committee on Economic Affairs (CCEA) has fixed the Minimum Support Price (MSP) of raw jute for 2025-26 marketing season at ₹5,650 per quintal. The new price is an increase of ₹315 per quintal over the price in 2024-25. Announcing the decision at a press conference here on Wednesday (January 22, 2025), Union Commerce Minister Piyush Goyal said the new MSP will ensure a return of 66.8% over the average cost of production and will benefit jute growers.

In a release, the Centre said: “The approved MSP of raw jute for marketing season 2025-26 is in line with the principle of fixing MSP at a level of at least 1.5 times all India weighted average cost of production as announced by the Government in the Budget 2018-19. Government of India has increased MSP of raw jute from ₹2,400 per quintal in 2014-15 to ₹5,650 per quintal in 2025-26, registering an increase of ₹3,250 per quintal (2.35 times).”

The government added that it paid ₹1,300 crore to jute growing farmers between 2014-15 and 2024-25 for the MSP, while it was ₹441 crore during 2004-05 to 2013-14 period. “The livelihood of 40 lakh farm families directly or indirectly depends on jute industry. About four lakh workers get direct employment in jute mills and trade in jute.” the Centre further said.

It pointed out that jute was procured from 1.70 lakh farmers last year. Overall, 82% of jute farmers belong to West Bengal while Assam and Bihar have 9% each of the remaining jute production share.

The government said the Jute Corporation of India (JCI) will continue as its nodal agency to undertake price support operations and the losses incurred, if any, in such operations, will be fully reimbursed by the Union government.