Cabinet approves MSP of Rs 3,500 for raw jute in 2017-18

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved the increase in the Minimum Support Price (MSP) for raw Jute for 2017-18 season to Rs 3,500 per quintal in order to protect the farmers' economic interests, a cabinet communique said.

It would benefit the jute industry, which supports the livelihood of around 40 lakh farm families and provides direct employment to 3.7 lakh workers in organised mills and in diversified units including tertiary sector and allied activities, it said.

"The CCEA has increased the MSP to a level of Rs 3,500 per quintal for 2017-18 season, which indicates an increase of Rs 300 (9.4 per cent) over the previous year.

"During last three years (2015-16, 2016-17 & 2017-18), the government has increased the MSP for jute from Rs 2,700 to Rs 3,500 (29.6 per cent) as compared to increase from Rs 2,200 to Rs 2,400 (9.1 per cent) in the preceding three years (2012-13, 2013-14 & 2014-15)," said the communique.

Jute is mainly used as raw material for the packaging industry. The jute farm families are mainly concentrated in West Bengal, Bihar and Assam which account for over 95 per cent of the area as well as jute production in the country.

As per the release, new varieties of jute, namely, JRO-204, JBO-2003, JRS-517, JRC-532 and JRO-2407 are being promoted by providing support for seeds production under National Food Security Mission (NFSM)-Commercial Crops.

The National Seeds Corporation Ltd has entered into agreement for promotion of new varieties of jute seeds in the jute-growing states.

--IANS

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