The Cabinet Committee on Economic Affairs (CCEA) on Friday approved a 6% hike in minimum support price (MSP) for raw jute for the 2023-24 season to Rs 5,050/quintal compared to the previous season.
The hike is in line with the principle of fixing the MSP at a level of at least 1.5 times all-India weighted average of cost of production as announced in Budget 2018-19, Union minister for information and broadcasting Anurag Thakur said.
Thakur also said a hike in MSP of raw jute would ensure a return of 63.20% over the all-India weighted average cost of production. He said the hike would help 4 million farmers and 0.4 million workers associated with the jute industry.
The Jute Corporation of India will undertake price support operations when prices fall below MSP and the losses incurred, in such operations, will be fully reimbursed by the government, according to an official statement.
To boost the jute industry, the government has enacted the Jute Packaging Materials (for compulsory use in packaging commodities) Act, 1987, stipulating certain commodities to be packed in jute.
In the last few years, the government has kept reservations of 100% and 20% for food grains and sugar respectively to be packaged in jute bags. Centre and state governments procure 70% of the total production of jute goods for packaging of foodgrain.