New Delhi: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Tuesday approved an increase of Rs 275 per quintal in Minimum Support Prices (MSP) of raw jute for marketing season 2026-27 compared to the price of the previous year. 

The MSP of raw jute (TD-3 grade) has been fixed at Rs. 5,925 per quintal for the 2026-27 season. This would ensure a return of 61.8 per cent over the all-India weighted average cost of production.

The MSP of raw jute announced for Marketing season 2026-27 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, according to an official statement issued after the meeting of the CCEA.

The MSP of Raw Jute for the Marketing season 2026-27 is an increase of Rs 275 per quintal over the previous marketing season 2025-26. The government has increased the MSP of raw jute from Rs 2,400 per quintal in 2014-15 to Rs.5,925 per quintal in 2026-27, registering an increase of Rs 3,525 per quintal, which represents a 2.5 times rise, the statement said.

The MSP amount paid to jute growing farmers during the period 2014-15 to 2025-26 was Rs 1,342 crore, while during the period 2004-05 to 2013-14, the amount paid was Rs 441 crore.

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 statement said.

India is the world's largest raw jute producer, with over 99 per cent of its production concentrated in West Bengal, Bihar, Assam, Odisha, and Andhra Pradesh. West Bengal is the leading producer, accounting for over 80 per cent of the total output due to favourable alluvial soil and climate, followed by Bihar and Assam.