India Hikes Raw Jute MSP
Analysis based on 9 articles · First reported Feb 24, 2026 · Last updated Feb 24, 2026
The hike in raw jute's Minimum Support Price by India's government is expected to positively impact farmers in major jute-producing states like India — West Bengal and India — Assam, potentially boosting their income and strengthening the agricultural sector. This move also supports the eco-friendly fiber ecosystem, aligning with rising global demand for sustainable alternatives to plastics.
The Union Cabinet of India, chaired by Prime Minister Narendra Modi, approved a significant hike in the Minimum Support Price (MSP) of raw jute to Rs 5,925 per quintal for the 2026-27 marketing season. This represents an increase of Rs 275 per quintal over the previous season and a 2.5-fold increase since 2014-15. The decision, announced by ministers including Ashwini Vaishnaw and Rajnath Singh, aims to ensure a 61.8 percent return over the all-India weighted average cost of production, aligning with the government's policy of fixing MSP at least 1.5 times the cost of production. The India — Jute Corporation of India will continue to serve as the nodal agency for price support operations, with any losses reimbursed by the Central Government. This move is expected to benefit jute farmers, particularly in India — West Bengal and India — Assam, and strengthen India's eco-friendly fiber ecosystem amidst growing global demand for sustainable alternatives.
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