Centre has increased the Minimum Support Price (MSP) on raw jute by Rs 315 to Rs 5,650 per quintal for the marketing season 2025-26. The Cabinet approval will result in a return of 66.8% over all-India weighted average cost of production.
Shares of makers of jute products such as Gloster, Cheviot and Ludlow Jute were sharply higher by up to 5% in early trade on January 22, in anticipation of a higher Minimum Support Price (MSP) on raw jute for the upcoming season.
Since 2014-15, the MSP increase has been 2.35 times till today.
Briefing media on the Cabinet decisions, Commerce Minister Piyush Goyal responded to a question on India's low jute output, and said the production will be a decision based on the farmer's own interests. "Jute production is based on a variety of conditions and it is finding acceptance as a sustainable product. We have continuously encouraged farmers in jute production and we assure to buy at MSP. However, the output and production of jute will be a function of the farmer's own interest on what product gives them the best value."
CNBC Awaaz had earlier reported citing people familiar with the development that the Cabinet Committee of Economic Affairs (CCEA) could approve a decision in this regard today. The hike in MSP is a major sop for the farmers involved in the production of jute.
The MSP hike this year has been higher than 2024-25 season, and is expected to help encourage the production of jute in India. Last year, the MSP on raw jute had been raised for the 2024-25 season by Rs 285 to Rs 5,335 per quintal.
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