Raw jute MSP hiked by Rs 250 to Rs 4,750 a quintal for 2022-23 season

Jute Corporation of India 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 Centre

The government has increased the minimum support price (MSP) of raw jute by Rs 250 to Rs 4,750 per quintal for the 2022-23 season.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Tuesday approved the MSP for raw jute for the 2022-23 season.

The approval is based on recommendations of the Commission for Agricultural Costs and Prices.

"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," an official statement said.

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 Centre.

The announced MSP of raw jute for the 2022-23 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.

"It assures a minimum of 50 per cent as margin of profit. It is one of the important and progressive steps towards ensuring better remunerative returns to the jute growers and to incentivise quality jute fibre," the statement said.