Government increases minimum support price for jute

‘New MSP for raw jute for 2022-2023 season is ₹250 higher than a year earlier’

The revised support price will ensure a return of 60.53% over the all-India weighted average cost of production, says an official release. File | Photo Credit: Himmat Rana

The Cabinet Committee on Economic Affairs on Tuesday approved the Minimum Support Price (MSP) for raw jute for the 2022-2023 season.

According to an official release, the MSP of raw jute (TDN₃ equivalent to TD₅ grade) has been fixed at ₹4,750 a quintal for 2022-2023 season, which is ₹250 higher than the previous season. “This would ensure a return of 60.53 % over All India weighted average cost of production,” it said.

The announced price is in line with the principle of fixing the MSP at a level of at least 1.5 times of the all-India weighted average cost of production as announced by the government in the 2018-2019 Budget and is based on the recommendations of the Commission for Agricultural Costs and Prices. It assures a minimum of 50% as margin of profit, the release said.

The Jute Corporation of India (JCI) will continue as the central government nodal agency to undertake the price support operation. In case of any losses in the operation, they would be fully reimbursed by the central government.