The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has given its approval for the increase in the Minimum Support Price (MSP) for Raw Jute for 2018-19 season.
The minimum support price for Fair Average Quality (FAQ) of Raw Jute has been increased to Rs.3,700 per quintal for 2018-19 season from Rs. 3500 per quintal in 2017-18 season.
The MSP would yield returns of 63.2 percent over the weighted average A2+FL cost of production. The MSP of Raw Jute is expected to ensure appropriate minimum prices to the farmers and step up investment in Jute cultivation and thereby production and productivity in the country.
The increased MSP is based on recommendations of Commission for Agricultural Costs and Prices (CACP) which while recommending MSP takes into account the cost of production, overall demand-supply, domestic and international prices, inter-crop price parity, terms of trade between agricultural and non-agricultural sectors and the likely impact of MSP on the rest of the economy.
The Jute Corporation of India would continue to act as central nodal agency to undertake price support operations at the minimum support prices in the Jute growing states.