MSP Hike Announced by Modi Government: Farmers to Benefit

New Delhi (The Uttam Hindu): Under Prime Minister Modi's leadership, the Union Cabinet met on Wednesday and took several significant decisions. One of the major announcements was the increase in the Minimum Support Price (MSP) for raw jute by ₹315, bringing it to ₹5,650 per quintal for the 2025-26 marketing season. Additionally, the Cabinet approved the continuation of the National Health Mission (NHM) for the next five years. Union Minister Piyush Goyal shared the details of the Cabinet decisions, highlighting two key measures. The first was the approval of the MSP for raw jute, which has been set at ₹5,650 per quintal for the 2025-26 season.

Goyal further emphasized that the Modi government has been consistently raising the MSP based on the recommendations of the Commission for Agricultural Costs and Prices (CACP). Since the decision to fix MSP at more than 50% above the cost of production it has been implemented rigorously. As a result, there has been an approximately 6% increase in the MSP for raw jute for the 2025-26 season. In response to a query about the low production of jute in India, Commerce Minister Piyush Goyal explained, "The decision regarding production depends on the farmers' interests. Jute production is influenced by various factors and it is gaining recognition as a sustainable product. We have consistently encouraged farmers to produce jute and assured them of MSP-based procurement. However, the decision to grow jute will depend on the farmers' interests and the value they get from the crop."

This year's MSP hike is higher than the increase made for the 2024-25 season, with the aim of boosting jute production in India. Last year, the MSP for raw jute was increased by ₹285, reaching ₹5,335 per quintal for the 2024-25 season. Around 40 lakh farming families depend directly or indirectly on the jute industry for their livelihoods. Nearly 4 lakh workers are directly employed in jute mills and trade. Last year, jute was purchased from 1.7 lakh farmers. While 82% of jute farmers are from West Bengal, Assam and Bihar each contribute 9% to the country's jute production. Piyush Goyal also mentioned that the second major decision was the continuation of the National Health Mission for the next five years. He highlighted the historic milestones achieved under Prime Minister Modi's leadership, noting that in 2021-22 nearly 12 lakh health workers were associated with the NHM.