Ajay Kumar Jolly (MD JCI) addressing the press conference of Jute Corporation of India in Kolkata on 13.05.2025. | Photo Credit: Debasish Bhaduri

The Jute Corporation of India (JCI) has increased minimum selling price (MSP) of jute from ₹5,335 to ₹5,650 per quintal for crop year 2025-26 to discourage distress sales by farmers. JCI officials have also asked farmers not to fall for middlemen, and sell below MSP to ensure sustainability and growth of the industry.

The new MSP will be applicable from the new crop year which starts on July 1 for middle grade jute, and the prices for other grades will increase in parity. Officials said that a lack of information does create a lack of awareness among farmers about MSP and local JCI centres where they can sell their products. Farmers could use the Paat Mitro app to find the nearest centre among the 110 functioning in India.

“For the last 3-4 years we have been working with the Indian Space Research Organisation (ISRO) to help understand crop cultivation, environmental factors, soil quality, moisture, production, and more. We are also conducting a crop cutting experiment where we have achieved great accuracy over the years,” Moloy Chandan Chakraborty, Jute Commissioner of JCI, said. He said “active data collection” via remote sensing is also underway.

Mr. Chakraborty said that last year they sold around 600 tons of jute seeds; this year it has crossed 1,000 tons, an amount that exceeded their expectations. Jute production for the upcoming year is therefore expected to be sufficient.

No procurement limit

Last year the government of India procured over 5.05 lakh quintals of jute from farmers for ₹252.38 crores. Officials said that they are ready to buy as much as farmers can sell, in case they do not get better rates than the MSP in the open market.

“Climate change has had an impact on jute production over the years. Sowing of seeds has had to be preponed, and multiple cyclones have also impacted cultivation,” Ajay Kumar Jolly, Managing Director of JCI, told The Hindu. 

He said, however, climate change issues are not a major obstacle since cultivation of jute makes the land more fertile; it helps farmers grow others crops. Mr. Jolly said every hectare of jute absorbs 15 tons of carbon dioxide and releases over 10 tons of oxygen.

The officials also shut down rumours of shortfalls in jute production and increasing prices, which he said was likely an attempt to artificially increase the price.