Cabinet Committee on Economic Affairs (CCEA), chaired by Narendra Modi, has approved the Minimum Support Price (MSP) of raw jute (TD-3 grade) at ₹5,925 per quintal for the 2026–27 marketing season. This represents an increase of ₹275 per quintal over the previous season. India remains the largest producer of jute globally.
Key Highlights (MSP Decision)
| Particular | Details |
| Crop | Raw Jute (TD-3 Grade) |
| MSP for 2026–27 | ₹5,925 per quintal |
| Increase Over Previous Season | ₹275 per quintal |
| Return Over Cost of Production | 61.8% |
| MSP Principle | At least 1.5 times all-India weighted average cost (as per Union Budget 2018–19 announcement) |
| MSP in 2014–15 | ₹2,400 per quintal |
| Total Increase Since 2014–15 | ₹3,525 per quintal |
The decision aligns with the government’s MSP formula of ensuring minimum 50% margin over cost of production.
Role of Jute Corporation of India (JCI)
The Jute Corporation of India (JCI):
- Will continue as the Central Government Nodal Agency.
- Undertakes Price Support Operations (PSO).
- Any losses incurred during procurement will be fully reimbursed by the Central Government.
- Also undertakes commercial procurement above MSP when viable.
Jute Industry in India
India’s Position
- India is the largest producer of jute in the world.
- Jute is often called the “Golden Fibre”.
Production Data
| Crop | Estimated Production |
| Jute | 80.65 lakh bales |
| Mesta | 3.90 lakh bales |
Note: Jute and mesta are collectively referred to as raw jute for trade and industrial purposes.
Geographic Distribution
- Jute cultivation: Concentrated in Eastern and Northeastern India.
- Major producing state: West Bengal.
- Mesta cultivation: Spread across various regions of India.
Employment Impact
| Category | Estimated Beneficiaries |
| Direct mill workers | 4 lakh |
| Farm families supported | 40 lakh |
| Additional trade & allied sector workers | Large number |
Industrial Infrastructure
- Total composite jute mills: 116.
- West Bengal: 86 mills (highest concentration).
Economic and Environmental Significance
- Supports income security for 40 lakh farm families.
- Strengthens rural economy in eastern India.
- Encourages sustainable fibre production.
- Promotes eco-friendly alternatives to plastic.
- Boosts packaging, textile, and geo-textile sectors.
- Supports green infrastructure initiatives.
Applications of Raw Jute
Originally used mainly for packaging, jute is now widely applied in:
- Textile industries
- Paper industries
- Building and automotive sectors
- Soil conservation (geo-textiles)
- Decorative and furnishing materials
- Agro-textiles
Jute is:
- Biodegradable
- Annually renewable
- Environment-friendly
- Supportive of ecological balance
Key Government Initiatives in Jute Sector
| Initiative | Purpose |
| Jute-ICARE | Increase farmers’ income by 50% via certified seeds, improved agronomy, microbial consortium |
| Promotion of Jute Geo-Textiles | Used in road construction, soil conservation |
| Agro-Textiles Promotion | Collaboration with Northeast states |
| JUTE-SMART (2016) | Software platform for procurement of jute sacking |
| National Jute Board | Statutory body for sector development and promotion |
About Jute Corporation of India (JCI)
- Established: 1971
- Ministry: Ministry of Textiles
- Function: Implements MSP for raw jute
- Acts as market stabiliser
- Conducts commercial operations in jute procurement