Prime Minister Narendra Modi has given a gift to jute farmers in West Bengal ahead of the 2026 Assembly elections. The Cabinet meeting chaired by PM Modi at Seva Tirtha increased the minimum support price (MSP) for jute. You can find all the details on the increase and the current MSP here.

Prime Minister Narendra Modi has given the farmers of West Bengal a gift of MSP before the 2026 Assembly elections. The central government has decided to increase the minimum support price (MSP) for raw jute by ₹275 for 2026-27, providing relief to jute farmers. Now, farmers will receive an MSP of ₹5,925 per quintal for raw jute.

PM Modi chairs Cabinet meeting at Seva Tirtha

This decision was taken at the Cabinet Committee on Economic Affairs (CCEA) meeting chaired by Prime Minister Narendra Modi on Tuesday. Significantly, the meeting took place in the Prime Minister's new office, 'Seva Tirtha'.

The Cabinet decision will benefit jute farmers in Bengal and Assam.

Farmers will receive a 61.8 percent profit on production of TD-3 grade raw jute.

The Jute Corporation of India (JCI) will remain the central government's nodal agency.

The central government will fully compensate for any operational losses.

The government maintains its policy of providing an MSP of 1.5 times the cost.

After the meeting, Information and Broadcasting Minister Ashwini Vaishnav stated that the government remains committed to a policy of keeping the MSP at least 1.5 times the cost of production. He added that the MSP announced for 2026-27 will ensure a profit of 61.8 percent over the national average cost of production.

Jute MSP increased by ₹275

In the previous marketing season, 2025-26, the MSP for raw jute was ₹5,650 per quintal. It has now been increased to ₹5,925. The government says this step has been taken to increase the income of jute farmers and provide them with better prices.

MSP increased by 247 percent in 10 years

According to government data, the MSP for raw jute was ₹2,400 per quintal in the 2014-15 financial year, which has now increased to ₹5,925. The MSP has increased by approximately 247 percent over the past decade.

₹1,342 crore paid from 2014-15 to 2025-26

₹1,342 crore was paid to jute farmers as MSP between 2014-15 and 2025-26, compared to ₹441 crore between 2004-05 and 2013-14.

Government Claims – Farmers' Economic Situation Will Be Strengthened

The government claims that this increase in MSP will be beneficial for farmers in jute-producing states, especially in eastern India, and will strengthen their economic situation.