The Government of India has fixed the Minimum Support Price (MSP) for raw jute (TD-3) for the 2026-27 marketing season at ₹5,925 per quintal, an increase of ₹275 (about 4.9%) over the ₹5,650 announced for 2025-26. This MSP ensures a margin of around 61.8% over the All-India weighted average cost (A2+FL) of ₹3,662. The decision follows the principle announced in the 2018-19 Union Budget of fixing MSP at least 1.5 times the cost of production.The increase is expected to benefit jute farmers, particularly in West Bengal and Assam, which together account for a large share of the countrys jute production. MSP-based procurement has become more active in recent years. Between 2014-15 and 2025-26, farmers received ₹1,342 crore under MSP operations, compared to ₹441 crore during 2004-05 to 2013-14, indicating stronger government intervention. The Jute Corporation of India (JCI) will continue to serve as the nodal agency for procurement and marketing during 2026-27. If the corporation incurs losses while selling procured jute, the central government will fully reimburse them. This arrangement reduces financial risk for JCI and ensures smooth procurement operations. The Commission for Agricultural Costs and Prices (CACP) has raised concerns about the declining area under jute cultivation and productivity differences across states. It noted that average yields in Assam and Bihar are lower than those in West Bengal and the national average. The Commission has recommended a sustainable expansion strategy, improved risk management, wider adoption of new technologies, and phased rationalization of mandatory jute usage under the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987 to promote diversified and higher-value use of raw jute. According to CACP, India is a net importer of raw jute but a net exporter of jute products. Export incentives provided by Bangladesh create competitive pressure for Indian producers. The Commission has therefore emphasized monitoring subsidized imports and taking necessary action when required. The United States remains a major market for Indian jute products, but recent tariff changes have increased uncertainty. Hence, the Commission has stressed the need for export diversification, especially since the top five destinations account for 50-70% of Indias total jute exports.