Cabinet raises Minimum Support Price for raw jute by Rs 250 per quintal for 2022-23 season

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the Minimum Support Price (MSP) for raw jute for 2023-24 season based on the recommendations of the Commission for Agricultural Costs and Prices (CACP) on Friday.

The MSP of raw jute (TD-3 equivalent to earlier TD-5 grade) has been fixed at Rs 5050 per quintal for 2023-24 season to ensure a return of 63.20 percent over the all-India weighted average cost of production. 

The announced MSP of raw jute for 2023-24 season is in line with the principle of fixing the MSP at a level of at least 1.5 times all-India weighted average cost of production as announced by the Government in the Budget 2018-19.

The official press release stated that the measure has been taken to assure a minimum of 50 percent as margin of profit for jute farmers. It is one of the important and progressive steps towards ensuring better remunerative returns to the jute growers and to incentivize quality jute fibre, the release further stated.

"The MSP of raw jute (TDN3 equivalent to TD5 grade) has been fixed at Rs 4,750 per quintal for 2022-23 season with an increase of Rs 250 over the previous year. This would ensure a return of 60.53 per cent over all India weighted average cost of production," the release said.

"The approval is based on recommendations of the Commission for Agricultural Costs and Prices (CACP)," I&B Minister Anurag Thakur told reporters.

The minister said that the decision would ensure a return of 63.2 per cent over the all-India weighted average cost of production.

The announced MSP of raw jute for 2023-24 season is in line with the principle of fixing the MSP at a level of at least 1.5 times all India weighted average cost of production as announced by the government in the Budget 2018-19, the official release stated.

The Jute Corporation of India (JCI) will continue as Central Government Nodal Agency to undertake Price Support Operations and the losses incurred, if any, in such operations, will be fully reimbursed by the Central Government.