Indian govt sets MSP of raw jute at ₹4750 per quintal for 2022-23

23 Mar '22

2 min read

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India’s Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved Minimum Support Price (MSP) for raw jute (TDN3 equivalent to TD5 grade) at ₹4,750 per quintal for 2022-23 season, with an increase of ₹250 over the previous year. The approval is based on recommendations of the Commission for Agricultural Costs and Prices.

The new MSP would ensure a return of 60.53 per cent over all India weighted average cost of production. The announced MSP of raw jute for 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 Budget 2018-19, the ministry of agriculture and farmers welfare said in a press release.

The new MSP also 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 ministry said.

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.

Fibre2Fashion News Desk (KD)

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