open view news desk
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for the increase in the Minimum Support Price (MSP) for Raw Jute for 2019-20 season.
The Minimum Support Price (MSP) for Fair Average Quality (FAQ) of Raw Jute has been increased to Rs.3950/- per quintal for 2019-20 season from Rs. 3700/- per quintal in 2018-19 season.
The MSP would yield returns of 55.81 percent over the all India weighted average 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 Jute Corporation of India would continue to act as Central Nodal Agency to undertake price support operations at the MSP in the Jute growing states.
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 user industries and a minimum 50% as the margin over the weighted average cost of production.