The Union Cabinet, chaired by Prime Minister Narendra Modi, held a significant meeting on Tuesday at the new Prime Minister’s Office complex, ‘Seva Teerth’. This was the first meeting conducted in the new facility. During this session, the government announced a major financial boost for farmers by increasing the Minimum Support Price (MSP) for raw jute for the upcoming 2026-27 season. The decision is expected to directly benefit lakhs of farmers in the eastern states of India.
Details of the Jute MSP Hike
The Cabinet Committee on Economic Affairs (CCEA) has approved a hike of ₹275 per quintal for raw jute. With this increase, the new Minimum Support Price stands at ₹5,925 per quintal. This move follows the principle of fixing prices at 1.5 times the production cost, ensuring a profit margin of roughly 61.8% for the growers.
The Jute Corporation of India (JCI) will continue to work as the main agency for price support. If there are any losses during the procurement process to support these prices, the Central Government will fully reimburse the agency. This guarantees that farmers get the promised rate for their produce without market uncertainty.
Update on PM Kisan 22nd Installment
While the MSP announcement brought joy to jute farmers, millions of other farmers are eagerly waiting for the 22nd installment of the PM Kisan Samman Nidhi. The installment was not released during this specific Cabinet meeting. However, reports indicate that the preparations are complete.
The next installment is tentatively scheduled for release between late February and early March 2026. There is a strong possibility that the government might release the funds around the Holi festival. Beneficiaries are advised to check their e-KYC status and Aadhaar linking to ensure the money reaches their bank accounts without failure.
Other Major Infrastructure Decisions
Apart from agricultural decisions, the Cabinet also approved infrastructure projects worth over ₹12,236 crore to boost connectivity.
- Aviation: A new integrated terminal will be constructed at Srinagar Airport with a budget of ₹1,667 crore.
- Railways: Multi-tracking and line doubling projects were cleared for Maharashtra, Madhya Pradesh, Bihar, and Jharkhand.
- Urban Transport: The extension of Ahmedabad Metro Phase 2B also received the green signal.
