Farmers growing raw jute can now look forward to better prices after the central government approved an MSP increase to Rs 5,925 per quintal for 2026-27. The Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, greenlit the move on Tuesday, marking a Rs 275 rise from the prior season.
This pricing guarantees 61.8% returns above the all-India average production costs, staying true to the 1.5x cost assurance from the 2018-19 budget. It’s a continuation of upward trends: from Rs 2,400 in 2014-15 to today’s level, representing a 2.5 times escalation.
Financial support has surged accordingly. MSP payments to jute growers totaled Rs 1,342 crore over 2014-15 to 2025-26, compared to just Rs 441 crore in the preceding decade from 2004-05 to 2013-14.
As the top global producer, India’s jute heartland—West Bengal (80%+), Bihar, Assam, Odisha, and Andhra Pradesh—benefits immensely from alluvial soils and monsoon-friendly weather. The Indian Jute Corporation handles procurements, with the government absorbing all operational deficits.
Beyond immediate gains, this decision promotes jute as a green packaging solution, amid declining plastic use. It empowers smallholder farmers, stabilizes supply chains, and positions India favorably in international trade arenas.