The Centre has approved an increase of Rs 315 per quintal in the Minimum Support Price (MSP) of raw jute for the marketing season of 2025-26.

Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, fixed the MSP of Raw Jute (TD-3 grade) at Rs 5,650/- per quintal for the 2025-26 season. This would ensure a return of 66.8 per cent over the all-India weighted average cost of production.

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's weighted average cost of production as announced by the Government in the Budget 2018-19, according to an official statement issued after the CCEA meeting.

The MSP of Raw Jute for the marketing season 2025-26 is an increase of Rs.315 per quintal over the previous marketing season 2024-25, the statement said.

"The Government of India has increased the MSP of raw jute from Rs.2400 per quintal in 2014-15 to Rs.5,650 per quintal in 2025-26, registering an increase of Rs 3250 per quintal (2.35 times)," the statement highlighted.

The MSP amount paid to jute growing farmers, during 2014-15 to 2024-25, was Rs 1300 crore while from 2004-05 to 2013-14, the amount paid was Rs 441 crore, the statement said.

The livelihood of 40 lakh farm families directly or indirectly depends on the jute industry. About 4 Lakh workers get direct employment in jute mills and trade in jute.

Last year, jute was procured from 1, 70,000 farmers. As many as 82 per cent of jute farmers live in West Bengal while the rest are in Assam and Bihar which have a 9 per cent share each in jute production.

The Jute Corporation of India (JCI) will continue as the Central Government Nodal Agency to undertake Price Support Operations and the losses incurred, if any, in such operations, will be fully reimbursed by the Central Government, the official statement added.