Cabinet approves MSP hike for raw jute

New Delhi [India], April 26 (ANI): The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved an increase in the Minimum Support Price (MSP) for raw jute for the 2018-19 season.

The MSP for Fair Average Quality (FAQ) of raw jute has therefore been increased to Rs.3700/- per quintal for the 2018-19 season from Rs. 3500/- per quintal in the 2017-18 season.

The increase in MSP 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 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 the rest of the economy.

The Centre said the Jute Corporation of India would continue to act as the Central Nodal Agency to undertake price support operations in Jute-growing states.

In January, the CCEA had approved the mandatory packaging of foodgrains and sugar in the jute material for the Jute Year 2017-18.

The decision, the Committee claimed, would sustain the core demand for the jute sector and support the livelihood of the workers and farmers dependent on the sector. (ANI)

This story has not been edited. It has been published as provided by ANI