Govt to announce Rs 400 per quintal subsidy for raw jute

The government is set to announce shortly a relief of Rs 400 per quanital on raw jute over minimum support price of Rs 1700 per quintal. "The state has agreed to offer subsidy of Rs 100 per qunital while, Centre has agreed to pay another Rs 300 per quintal to support the farmers," West Bengal Agricuture Marketing Minister Arup Roy said at the Indian Chamber of Commerce.

"The announcement of the Centre's support is expected shortly," he said. There are about 40 lakh jute growers in the country and majority is in West Bengal. "Production cost of raw jute is Rs 1900-1950 per quintal and MSP is Rs 1700 per quintal. State had demanded a support of Rs 400 but Centre had agreed for Rs 300 per quintal.