The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Tuesday, approved the minimum support price (MSP) for raw jute for the 2022-23 season. The government has increased the MSP of raw jute by Rs 250 to Rs 4,750 per quintal for the 2022-23 season.
The approval is based on recommendations of the Commission for Agricultural Costs and Prices.
"The MSP of raw jute (TDN3 equivalent to TD5 grade) has been fixed at Rs 4,750 per quintal for 2022-23 season with an increase of Rs 250 over the previous year. This would ensure a return of 60.53 percent overall India weighted average cost of production," an official statement said.
The Jute Corporation of India (JCI) will continue to serve as the Centre's focal agency for price support operations, and any losses incurred would be fully compensated by the government.
The approved MSP for raw jute for the 2022-23 season follows the government's announcement in the Budget 2018-19 that the MSP should be set at least 1.5 times the all-India weighted average cost of production.
"It assures a minimum of 50 per cent as 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 statement said.
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