The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi on Tuesday approved a proposal to increase Minimum Support Price (MSP) for raw jute to Rs 4750 per quintal for 2022-23 season, which is Rs 250 per quintal higher over the previous year.
This would ensure a return of 60.53 per cent over all India weighted average cost of production. The announced MSP of raw jute for 2022-23 season is in line with the principle of fixing the MSP at a level of at least 1.5 times all India weighted average cost of production as announced by the Government in the Budget 2018-19, according to an official statement released after the cabinet meeting.
The approval is based on recommendations of the Commission for Agricultural Costs and Prices.
The new MSP price would assure a minimum of 50 per cent as a margin of profit. It is one of the important and progressive steps towards ensuring better remunerative returns to the jute growers and to incentivise quality jute fibre.
The Jute Corporation of India (JCI) will continue as Central Government Nodal Agency to undertake Price Support Operations and the losses incurred, if any, in such operations, will be fully reimbursed by the Central Government, according to a statement released by the Ministry of Agriculture & Farmers Welfare.
( With inputs from ANI )
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