NEW DELHI, Jan 23 – The Indian government has raised the minimum support price (MSP) of raw jute by 6% to ₹5,650 per quintal for the 2025-26 marketing season, a move aimed at increasing farmer incomes and supporting the jute industry, officials said on Wednesday. The hike represents a 2.35-fold increase from ₹2,400 per quintal in 2014-15 and is expected to provide farmers a return of 66.8% over the all-India weighted average cost of production, according to an official statement.
Commerce and Industry Minister Piyush Goyal emphasized the government’s commitment to promoting jute cultivation, citing its growing acceptance as a sustainable product. “We have continuously encouraged farmers in jute production and we assure them of buying (jute) at MSP. However, the output and production of jute will be a function of the farmers’ own interest in what product gives them the best value,” Goyal said.
The jute industry supports approximately 4 million farmers and employs 400,000 workers in manufacturing and trade. Jute, a natural fiber, is used in products like packaging materials, bags, and ropes. Procurement from jute farmers last year covered 170,000 individuals, mainly in West Bengal, Assam, and Bihar, regions that dominate India’s jute production.
The Commission for Agricultural Costs and Prices (CACP) has flagged concerns about large imports of cheap raw jute and jute products from SAARC countries, particularly Bangladesh, which hurt Indian farmers and mills. The commission recommended that the government monitor imports closely and take steps to prevent dumping
The Jute Corporation of India (JCI), tasked with price support operations, faces limited presence, infrastructure gaps, and manpower constraints in jute-growing regions, the CACP noted. It recommended greater involvement of state governments, cooperatives, self-help groups, and local bodies to enhance procurement efficiency.
The CACP also highlighted that average productivity of jute remains below potential, primarily due to the unavailability of quality seeds. Between 2014-15 and 2024-25, ₹1,300 crore in MSP payments were made to jute farmers, a significant jump from ₹441 crore between 2004-05 and 2013-14, the statement said. The government’s latest measures aim to address systemic issues while ensuring a fair return to jute farmers, bolstering the sector’s long-term viability.
