New Delhi [India], January 22 (HBTV): The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the Minimum Support Price (MSP) for Raw Jute for the 2025-26 marketing season, as per an official release.

The MSP for Raw Jute (TD-3 grade) has been set at INR 5,650 per quintal for the 2025-26 season, ensuring a return of 66.8 percent over the all-India weighted average cost of production.

Union Minister Piyush Goyal, addressing the Cabinet briefing, stated that the MSP for raw jute for the 2025-26 marketing season has been increased to INR 5,650 per quintal, marking a 6 percent rise compared to the previous year.

The decision to increase the MSP is expected to directly benefit approximately 1.70 lakh farmers involved in jute cultivation and positively impact around 40 lakh families connected to the jute farming sector.

This move is seen as a critical step to ensure better income stability for jute farmers and improve the financial sustainability of the jute industry.

The approved MSP aligns with the principle of fixing MSP at a level of at least 1.5 times the all-India weighted average cost of production, as announced in the Budget 2018-19.

The MSP for Raw Jute in the 2025-26 season is an increase of INR 315 per quintal over the previous season (2024-25). The government has raised the MSP of raw jute from INR 2,400 per quintal in 2014-15 to INR 5,650 per quintal in 2025-26, marking an increase of INR 3,250 per quintal (2.35 times).

The total amount paid to jute-growing farmers from 2014-15 to 2024-25 was INR 1,300 crore, compared to INR 441 crore during 2004-05 to 2013-14.

The livelihood of 40 lakh farm families directly or indirectly depends on the jute industry. About 4 lakh workers are employed directly in jute mills and trade. Last year, jute was procured from 1.70 lakh farmers. 82 percent of jute farmers are from West Bengal, while Assam and Bihar contribute 9 percent each to the total jute production share.

The Jute Corporation of India (JCI) will continue as the central government nodal agency for Price Support Operations, with any losses incurred in these operations being fully reimbursed by the central government, according to the release. (ANI)