Big step for jute-producing farmer: PM Modi on MSP hike

New Delhi: Prime Minister Narendra Modi on Thursday said that the Centre has taken a significant step to benefit farmers in the jute-producing sector, including in West Bengal, by approving a hike in the Minimum Support Price (MSP) of raw jute for the 2025-26 marketing season.

Taking to X, PM Modi said, “Our government has taken a big step in the interest of jute-producing farmer brothers and sisters across the country. An increase in the MSP of raw jute has been approved for the year 2025-26. This will benefit lakhs of farmers associated with this sector in many states of the country, including West Bengal.”

The Cabinet Committee on Economic Affairs (CCEA), chaired by PM Modi, has fixed the MSP of raw jute (TD-3 grade) at Rs 5,650 per quintal for the 2025-26 season, ensuring a 66.8 per cent return over the all-India weighted average cost of production.

This represents an increase of Rs 315 per quintal over the MSP for the 2024-25 marketing season. The increase aligns with the government’s principle of fixing MSP at least 1.5 times the weighted average cost of production, as announced in the 2018-19 Union Budget.

The MSP of raw jute has witnessed a significant rise under the current government, from Rs 2,400 per quintal in 2014-15 to Rs 5,650 per quintal for 2025-26, marking a 2.35 times increase of Rs 3,250 per quintal.

The livelihood of 40 lakh farm families is directly or indirectly dependent on the jute industry, with about 4 lakh workers employed directly in jute mills and trade. Last year, jute was procured from 1.7 lakh farmers, with 82 per cent of jute farmers based in West Bengal and the remaining from Assam and Bihar, contributing 9 per cent each to national production.

The Jute Corporation of India (JCI) will continue as the nodal agency for Price Support Operations, with the Central Government fully reimbursing any losses incurred during these operations, the statement noted.

The official statement highlighted the difference in payments made to jute farmers over the years. Between 2014-15 and 2024-25, the amount stood at Rs 1,300 crore, compared to Rs 441 crore during the period of 2004-05 to 2013-14.

The decision reinforces the government’s commitment to the welfare of jute farmers and is expected to strengthen the sector by providing fair prices and greater financial security.

–IANS