The minimum support price (MSP) for raw jute has been hiked by Rs 250 per quintal to Rs 3,950 per quintal for the 2019-20 crop season.
The decision to increase the MSP for fair average quality (FAQ) of raw jute from Rs 3,700 per quintal (100 kg) in 2018-19 was taken at the meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi on Wednesday.
“The MSP would yield returns of 55.81 per cent over the all-India weighted average cost of production. The MSP of raw jute is expected to ensure appropriate minimum prices to farmers and step up investment in jute cultivation and thereby production and productivity in the country,” an official statement said.
Source: The Telegraph
The increased MSP is based on the recommendations of the Commission for Agricultural Costs and Prices, which, while recommending MSP, takes into account a number of factors such as the cost of production, overall demand-supply situation and domestic and international prices. It also considers inter-crop price parity, terms of trade between agricultural and non-agricultural sectors and the likely impact of MSP on user industries and a minimum 50 per cent as the margin over the weighted average cost of production.
Last November, the government had made jute packaging mandatory for all foodgrain and continued with a 20 per cent packing requirement for sugar. Earlier, it was compulsory to pack 90 per cent of foodgrain in jute bags.
These decisions will benefit jute farmers mainly in Bengal, Assam and Bihar, which account for 95 per cent of the country’s jute production. Jute provides livelihood to 40 lakh farm families and direct employment to two lakh workers.
