Raw jute fiber hanging under the sun for drying. (Representative image)
Credit: iStock Photo
New Delhi, Mar 7 (PTI) The government on Thursday raised MSP for raw jute by Rs 285 to Rs 5,335 per quintal for the 2024-25 season.
The decision to fix the minimum support price (MSP) of raw jute (TDN-3 equivalent to earlier TD-5 grade) was taken at the Cabinet Committee on Economic Affairs, Union Minister Piyush Goyal said.
He said the decision will greatly benefit farmers in eastern states, especially West Bengal.
In the current season 2023-24, the government has procured a record amount of more than 6.24 lakh bales of raw jute at the cost of Rs 524.32 crore, benefitting around 1.65 lakh farmers.
The MSP for 2024-25 will ensure a return of 64.8 per cent over the all-India weighted average cost of production, an official release said.
The MSP of raw jute for the 2024-25 season is in line with the principle of fixing the minimum support price at a level of at least 1.5 times all India's weighted average cost of production as announced by the government in the Budget 2018-19.
The decision is based on recommendations of the Commission for Agricultural Costs and Prices (CACP).
The Jute Corporation of India (JCI) will continue as a 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.