Centre approves hike in MSP of raw jute

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Shri Narendra Modi, has approved the Minimum Support Price (MSP) for raw jute for the 2025-26 marketing season. The MSP for raw jute (TD-3 grade) has been set at ₹5,650 per quintal, ensuring farmers a 66.8% return over the production cost. Additionally, the Cabinet has extended the National Health Mission (NHM) for another five years.

The Union Cabinet has approved an increase in the Minimum Support Price (MSP) of raw jute for the 2025-26 marketing season, raising it to ₹5,650 per quintal. According to Union Minister Shri Piyush Goyal, this hike guarantees farmers a 66.8% return over the all-India weighted average cost of production. The revised MSP represents a ₹315 per quintal increase from the ₹5,335 set for the 2024-25 marketing season.

The new pricing aims to provide better remuneration for jute farmers while encouraging sustainable agricultural practices in the sector.

The government’s long-term policy of linking the Minimum Support Price (MSP) to the average cost of production has led to a steady increase in the MSP for raw jute. Since 2014-15, the MSP has risen from ₹2,400 per quintal to the current level, marking a growth of ₹3,250 per quintal—a 2.35-fold increase. Between 2014-15 and 2024-25, the government has disbursed ₹1,300 crore in MSP payments to jute farmers, a significant rise compared to ₹441 crore paid during 2004-05 to 2013-14.

The jute industry plays a vital role in supporting the livelihoods of approximately 40 lakh farm families, either directly or indirectly. Additionally, around 4 lakh workers are employed in jute mills and allied sectors. Last year, jute procurement benefited 1.7 lakh farmers. West Bengal dominates jute production, accounting for 82% of the total output, while Assam and Bihar contribute 9% each.

The Jute Corporation of India (JCI) will continue as the central government’s nodal agency for price support operations, according to the Ministry of Agriculture & Farmers Welfare. The government has assured that any losses incurred by the JCI during these operations will be fully reimbursed.

Additionally, the Union Cabinet approved the continuation of the National Health Mission (NHM) for another five years. Highlighting the achievements of the Mission, the Minister noted that it has met several historic milestones over the past decade. Between 2021 and 2022 alone, nearly 12 lakh healthcare workers joined the NHM, playing a vital role in India’s fight against the COVID-19 pandemic.