₹275 Increase in MSP Aims to Ensure 61.8% Return Over Production Cost
New Delhi, February 24: The Union Cabinet on Tuesday approved an increase in the Minimum Support Price for raw jute by ₹275 to ₹5,925 per quintal for the 2026-27 marketing season.The decision was taken by the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, during its first meeting held at the Prime Minister’s new office, Seva Teerth.
The revised MSP is designed to ensure a return of 61.8 per cent over the all-India weighted average cost of production.
MSP Fixed at 1.5 Times Production Cost Benchmark
Addressing reporters after the meeting, Information and Broadcasting Minister Ashwini Vaishnaw said that the MSP for raw jute for the 2026-27 marketing season aligns with the government’s principle of fixing MSP at a level of at least 1.5 times the all-India weighted average cost of production, as announced in the Budget 2018-19.He stated that the newly approved MSP represents an increase of ₹275 per quintal over the 2025-26 marketing season.
Raw Jute MSP More Than Doubled Since 2014-15
The government has steadily raised the MSP for raw jute over the past decade. From ₹2,400 per quintal in 2014-15, the MSP has now reached ₹5,925 per quintal for 2026-27, marking an increase of ₹3,525 per quintal, or 2.5 times over the period.In terms of financial support, the MSP amount paid to jute-growing farmers during 2014-15 to 2025-26 stood at ₹1,342 crore. This compares with ₹441 crore disbursed during the period 2004-05 to 2013-14.
JCI to Continue as Nodal Agency for Price Support Operations
The Jute Corporation of India will continue to serve as the Central Government’s nodal agency for undertaking price support operations. Any losses incurred during such operations will be fully reimbursed by the Centre.The MSP revision is expected to support jute growers by ensuring remunerative prices during the 2026-27 marketing season, while maintaining the government’s stated policy framework on cost-based pricing.
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