The cabinet committee on economic affairs on Tuesday approved an increase in the minimum support price of raw jute by Rs 250 to Rs 4,750 per quintal for the 2022-23 season.
The approval is based on the recommendations of the Commission for Agricultural Costs and Prices.
“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 the all India weighted average cost of production as announced in the Union budget 2018-19,” a government statement said.
The statement said this would ensure a return of 60.53 per cent over the all India weighted average cost of production.
The Jute Corporation of India will act as the central government nodal agency to undertake price support operations and the government said losses incurred from such operations will be fully reimbursed by the Centre.
However, jute industry sources said the amount of increase in minimum support price of raw jute may not be enough to entice farmers to go for higher jute cultivation.
“While an increase in the MSP is welcome, the amount of increase is inadequate given the rising cost of cultivation. Farmers from Bengal, Bihar and Assam are not encouraged to ramp up jute production because of non-remunerative support prices and high fluctuation in market prices,” said an industry observer.
