On Thursday, the Cabinet Committee on Economic Affairs approved a ₹285/quintal hike in the minimum support price (MSP) for raw jute to ₹5,335/quintal for the 2024-25 season, up from ₹5,050/quintal in 2023-24.
New MSP
Textile Minister Piyush Goyal announced the decision following Cabinet approval, stating that the new MSP for raw jute (TDN-3 equivalent to the earlier TD-5 grade) is 65% higher than the estimated cost of production. He stated that the decision will greatly benefit farmers in eastern states, particularly in West Bengal.
In 2023–24, the government procured over 6.24 lakh bales of raw jute (each weighing 180 kg) at a cost of ₹524.32 crore, benefiting approximately 1.65 lakh farmers.
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The MSP for raw jute for the 2024–25 season adheres to the principle of setting the minimum support price at least 1.5 times all of India’s weighted average cost of production, as announced by the government in the 2018–19 budget, according to an official statement. The decision is based on the Commission for Agricultural Costs and Prices (CACP) recommendations.
The Jute Corporation of India (JCI) will continue to serve as the central government’s nodal agency for price support operations, and any losses incurred will be fully reimbursed by the central government.
According to Goyal, the government has raised the minimum support price (MSP) for raw jute from ₹2,400 per quintal in 2014-15 to ₹5,335 per quintal in 2024-25, representing a 122% increase.
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