MSP of raw jute up by 18.5% to Rs 3,200/qtl for 2016-17

In order to boost raw jute production, the government has hiked the minimum support price (MSP) of raw jute by 18.5% to Rs 3,200 per quintal for 2016-17. A decision in this regard was taken in the meeting of the Cabinet, chaired by Prime Minister Narendra Modi in New Delhi.

The Cabinet Committee on Economic Affairs approved the Agriculture Ministry’s proposal on raising the MSP of raw jute to Rs 3,200 per quintal for 2016-17 from Rs 2,700 per quintal in the previous year.

The decision is in line with the recommendations made by the Commission for Agricultural Costs and Prices ( CACP), a statutory body that advises the government on the pricing policy for major farm produces.

For this year, the Textile Ministry had sought an MSP of Rs 3,650 per quintal while other ministries and even Niti Aayog had pitched for marginal increase in the jute MSP by Rs 300 per quintal, keeping in view the inflationary trends.

In 2015-16, the area under raw jute has reduced to 7.5 lakh hectare from little over 8 lakh hectare in year 2016-17. Jute farming is providing livelihood to more than 40 lakh farmers in West Bengal, Odisha, Assam and eastern Bihar.