Cabinet hikes raw jute MSP to Rs 5,925 per quintal for 2026-27

• The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, approved the Minimum Support Price (MSP) for raw jute at Rs 5,925 per quintal for the 2026-27 marketing season, an increase of Rs 275 over the previous season.

• India is the largest producer of jute. 

• The MSP of raw jute (TD-3 grade) has been fixed at Rs 5,925 per quintal for 2026-27 season. 

• This would ensure a return of 61.8 per cent over the all India weighted average cost of production.

• The decision is in line with the government's principle of fixing MSP at least 1.5 times the all-India weighted average cost of production, as announced in the Union Budget 2018-19.

• Since 2014-15, the MSP of raw jute has been increased from Rs 2,400 per quintal to Rs 5,925 per quintal in 2026-27, registering a rise of Rs 3,525 per quintal.

• The Jute Corporation of India (JCI) will continue as the central government’s nodal agency to undertake Price Support Operations. 

• Any losses incurred in such operations will be fully reimbursed by the central government.

Jute industry in India

• India is the largest producer of jute, also called the “golden fibre”, in the world. 

• In trade and industry, jute and mesta crop together known as raw jute as their uses are almost same.

• Raw jute was originally considered as a source of raw material for packaging industries only. But it has now emerged as a versatile raw material for diverse applications, such as, textile industries, paper industries, building and automotive industries, use as soil saver, use as decorative and furnishing materials, etc. 

• Raw jute being bio-degradable and annually renewable source, it is considered as an environment-friendly crop and it helps in the maintenance of the environment and ecological balance.

• The production of jute and mesta in India is estimated to be 80.65 lakh bales and 3.90 lakh bales respectively. 

• Jute cultivation is mainly concentrated in eastern and northeastern India while that of mesta cultivation is spread almost throughout the country.

• It is estimated that the jute industry provides direct employment to 4 lakh workers in organised mills and in diversified units including tertiary sector and allied activities and supports the livelihood of 40 lakh farm families. In addition, there are a large number of persons engaged in the trade of jute.

• As per the Office of Jute Commissioner, there are 116 composite jute mills. West Bengal has the highest number of jute mills (86).

• The Jute Corporation of India (JCI) was established in 1971. It is the official agency of the ministry of textiles responsible for implementing the MSP policy for jute producers and serves as a stabilising agency in the raw jute market. JCI also undertakes commercial operations, procuring jute at prices above the MSP on commercial consideration to generate profits. 

• The schemes for promotion of the jute sector are primarily implemented by the National Jute Board, which is a statutory body created for the development and promotion of the sector.

• Jute-ICARE has been launched for increasing the income of jute farmers by at least 50 per cent by using certified seeds, modern agronomic practices in jute cultivation and also by using microbial consortium to upgrade the quality of jute. 

• The promotion of Jute Geo-Textiles and Agro-Textiles have been taken up with the state governments, particularly those in the northeast region and also with departments such as ministry of road transport and ministry of water resources. 

• A software platform ‘JUTE-SMART’ (Jute Sacking Supply Management and Requisition Tool) has been set up for procurement of jute sacking from November 1, 2016.

(The author is a trainer for Civil Services aspirants.)