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 Marketing Season 2026-27.

MSP Fixed at ₹5,925 per Quintal

The MSP of Raw Jute (TD-3 grade) has been fixed at ₹5,925 per quintal for the 2026-27 season.

This MSP ensures a return of 61.8% over the all-India weighted average cost of production. The decision follows the government’s principle, announced in Budget 2018-19, of fixing MSP at least 1.5 times the cost of production.

Increase Over Previous Season

• The MSP has been increased by ₹275 per quintal compared to the 2025-26 season.
• Since 2014-15, MSP for raw jute has risen from ₹2,400 per quintal to ₹5,925 per quintal, marking an increase of ₹3,525 per quintal (2.5 times).

Benefit to Farmers

The government stated that during the period 2014-15 to 2025-26, a total of ₹1,342 crore was paid to jute farmers as MSP.

In comparison, during 2004-05 to 2013-14, only ₹441 crore was paid, showing significant growth in financial support.

Role of Jute Corporation of India

The Jute Corporation of India (JCI) will continue as the Central Government’s nodal agency to undertake Price Support Operations.

Any losses incurred during procurement will be fully reimbursed by the Central Government.

Importance of the Decision

The MSP hike aims to:

• Ensure fair remuneration to jute farmers
• Promote jute cultivation
• Strengthen rural incomes
• Support the jute industry supply chain

The move is expected to benefit farmers, especially in major jute-producing states like West Bengal, Assam, and Bihar.

MCQs: MSP for Raw Jute 2026-27

Q1. The MSP for Raw Jute (TD-3 grade) for the 2026-27 season has been fixed at:
(a) ₹5,500 per quintal
(b) ₹5,650 per quintal
(c) ₹5,925 per quintal
(d) ₹6,000 per quintal
(e) ₹6,200 per quintal

Ans: (c)
Sol: The MSP has been fixed at ₹5,925 per quintal.

Q2. The MSP ensures what percentage return over the weighted average cost of production?
(a) 50%
(b) 55%
(c) 58%
(d) 61.8%
(e) 65%

Ans: (d)
Sol: The MSP ensures a return of 61.8% over cost of production.

Q3. The MSP of Raw Jute has increased by how much compared to the 2025-26 season?
(a) ₹200
(b) ₹250
(c) ₹275
(d) ₹300
(e) ₹350

Ans: (c)
Sol: The MSP was increased by ₹275 per quintal.

Q4. Which organisation acts as the nodal agency for jute price support operations?
(a) FCI
(b) NABARD
(c) Cotton Corporation of India
(d) Jute Corporation of India
(e) APEDA

Ans: (d)
Sol: The Jute Corporation of India (JCI) undertakes price support operations.

Q5. The principle of fixing MSP at least 1.5 times cost of production was announced in which Budget?
(a) 2016-17
(b) 2017-18
(c) 2018-19
(d) 2019-20
(e) 2020-21

Ans: (c)
Sol: The principle was announced in Budget 2018-19.