The Cabinet Committee on Economic Affairs (CCEA) has approved a significant increase in the Minimum Support Price (MSP) for Raw Jute for the 2025-26 marketing season. The Ministry of Agriculture & Farmers Welfare has issued a press release on this development on January 22, 2025.
Key Highlights of the Press Release
The MSP for Raw Jute (TD-3 grade) has been fixed at Rs. 5,650 per quintal for the 2025-26 season. This represents an increase of Rs. 315 per quintal compared to the previous marketing season (2024-25). This MSP ensures a return of 66.8% over the all-India weighted average cost of production.
The approved MSP aligns with the 2018-19 Budget’s goal to set MSPs at a level of at least 1.5 times the all-India weighted average cost of production.
Moreover, the government has substantially increased the MSP of Raw Jute from Rs. 2,400 per quintal in 2014-15 to Rs. 5,650 per quintal in 2025-26, marking an increase of Rs. 3,250 per quintal (2.35 times).
Support for Jute Farmers and Workers
MSP payments to jute farmers have seen a substantial rise, with Rs. 1,300 crore paid between 2014-15 and 2024-25, compared to Rs. 441 crore paid between 2004-05 and 2013-14.
Additionally, jute industry supports the livelihoods of approximately 40 lakh farm families directly or indirectly. Around 4 lakh workers are directly employed in jute mills and trade. Last year, jute was procured from 1 lakh 70 thousand farmers. West Bengal accounts for 82% of jute production, with Assam and Bihar each contributing 9%.
The Jute Corporation of India (JCI) will continue to act as the Central Government’s nodal agency for Price Support Operations. Any losses incurred by the JCI in these operations will be fully reimbursed by the Central Government.
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