The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Shri Narendra Modi, has approved the Minimum Support Price (MSP) for raw jute for the 2024–25 season.
The MSP for raw jute (TDN-3 grade, equivalent to the earlier TD-5 grade) has been fixed at ₹5,335 per quintal, marking an increase of ₹285 per quintal over the previous season. This hike ensures a return of 64.8% over the all-India weighted average cost of production. The decision aligns with the Government’s policy, announced in the 2018–19 Union Budget, to fix MSPs at a minimum of 1.5 times the cost of production to ensure fair and remunerative prices to farmers.
The approved MSP is based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), which plays a key role in advising the Government on pricing policies for major agricultural commodities. Over the past decade, the Government has steadily increased the MSP for raw jute—from ₹2,400 per quintal in 2014–15 to ₹5,335 per quintal in 2024–25—reflecting a significant growth of 122%. This demonstrates the Government’s sustained efforts to enhance the earnings of jute farmers and strengthen the rural economy.
In the current 2023–24 season, the Government has procured a record volume of over 6.24 lakh bales of raw jute at a total cost of ₹524.32 crore, benefitting approximately 1.65 lakh farmers. The Jute Corporation of India (JCI) will continue to serve as the central nodal agency for undertaking price support operations.
Any losses incurred by JCI during procurement operations will be fully reimbursed by the Central Government, ensuring uninterrupted support for farmers and market stability for the jute sector. This decision is expected to contribute positively to the jute industry, which plays a crucial role in India’s textile economy, especially in eastern and northeastern regions.
News Curtesy: PIB