The Modi government has delivered yet another farmer-friendly decision by raising the MSP for raw jute by Rs 275 per quintal to Rs 5,925 for the 2026-27 season. Announced today by the Cabinet Committee on Economic Affairs under PM Narendra Modi’s leadership, this step promises higher returns for jute cultivators across key producing states.
Offering a handsome 61.8% profit margin over production costs, the new rate upholds the sacred 1.5-times cost formula enshrined in the 2018 budget. Compared to last season’s pricing, this hike provides immediate financial relief and underscores the government’s long-term commitment to crop remuneration.
Reflecting on the journey, raw jute MSP has skyrocketed from Rs 2,400 in 2014-15—an impressive 147% jump. The proof is in the payouts: Rs 1,342 crore released to farmers from 2014-15 to 2025-26, dwarfing the previous decade’s Rs 441 crore.
India’s dominance in global jute production, with 99% from eastern and southern states, remains unchallenged. West Bengal leads with over 80% share, followed by Bihar and Assam, leveraging ideal agro-climatic conditions.
Backed by the Indian Jute Corporation’s procurement machinery and full government loss coverage, this policy fortifies farmer confidence. It arrives at a pivotal time when sustainable fibers like jute gain traction in eco-conscious markets, potentially boosting exports and rural economies.