The central government announced on Thursday a significant hike in the minimum support price (MSP) for raw jute, setting it at Rs 5,335 per quintal for the upcoming 2024-25 season. This decision, made during the Cabinet Committee on Economic Affairs, was revealed by Union Minister Piyush Goyal, emphasizing its positive impact on farmers, particularly those in eastern states, with a special focus on West Bengal.
The raised MSP of raw jute, a Rs 285 increase from the previous season, is aligned with the government’s commitment to supporting farmers and ensuring their economic well-being. In the current season (2023-24), the government procured an unprecedented amount of over 6.24 lakh bales of raw jute, amounting to Rs 524.32 crore, directly benefiting around 1.65 lakh farmers.
The newly set MSP for the 2024-25 season is designed to provide a return of 64.8 per cent over the all-India weighted average cost of production, as per an official release. This move is in accordance with the government’s commitment, announced in the Budget 2018-19, to fix the minimum support price at a level of at least 1.5 times the all-India weighted average cost of production.
The decision to increase the MSP is based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), signaling the government’s responsiveness to the agricultural sector’s needs. The Jute Corporation of India (JCI) will retain its role as the central government nodal agency for price support operations, with any losses incurred in such operations fully reimbursed by the central government.
