Indian Govt Raises Minimum Support Price of Raw Jute

India Cabinet Committee on Economic Affairs (CCEA) has approved the Minimum Support Price (MSP) for 2014-15 season for TD-5 grade of Jute at Rs.2400 per quintal in the entire country. This is an increase of Rs.100 per quintal over the MSP announced by the government for the last season.

The increase in the MSP of raw jute is expected to encourage farmers to step up investment in jute cultivation and thereby production and productivity of jute in the country, according to a release by the Ministry of Agriculture on Thursday.

In order to incentivize farmers for the production of higher grades, the premiums for TD-3 and TD-4 varieties of raw jute will be maintained at 20 percent and 8 percent respectively in relation to the price of TD-5. The Jute Corporation of India (JCI) would continue to act as the nodal agency to undertake price support operation at MSP in jute growing states.

CCEA has also approved, that subject to availability of foodgrains in the Central Pool, allocation of foodgrains for festivals and natural calamities to States/ Union Territories (UTs) will be made at MSP and MSP derived prices for wheat and rice respectively, and at economic cost for any other additional foodgrains requirement of the States/UTs.

The CCEA has also approved the revision in price of allotment made to the Government of Uttarakhand for flood relief in the current year from economic cost to MSP/MSP derived prices in consonance with this decision regarding allocation for calamity relief.