Government Boosts Jute Farmers' Income with New MSP Hike

The Indian government has raised the Minimum Support Price (MSP) for raw jute to Rs 5,650 per quintal for the 2025-26 marketing season, offering a 6% increase from the previous year. This decision benefits 1.70 lakh farmers and 40 lakh families, enhancing financial stability in the jute sector.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved a significant hike in the Minimum Support Price (MSP) for raw jute for the 2025-26 marketing season, as per an official release. The MSP for TD-3 grade raw jute has been set at Rs 5,650 per quintal, promising a lucrative return of 66.8% over the all-India weighted average cost of production.

Union Minister Piyush Goyal, during the Cabinet briefing, announced the 6% increase in MSP compared to the previous year. This decision is aimed at directly benefiting approximately 1.70 lakh jute farmers while positively impacting about 40 lakh families involved in the jute farming sector.

The approved MSP adheres to the principle set by the 2018-19 budget, which states MSP should be 1.5 times the all-India weighted average cost of production. Since 2014-15, the government's jute MSP strategy has shown significant growth, benefitting millions of families reliant on the jute industry.

(With inputs from agencies.)