1. Agriculture World

MSP of Raw Jute Increased By Rs. 250 For 2022-23 Season

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, accepted a proposal on Tuesday to increase the minimum support price (MSP) for raw jute to 4,750 per quintal for the 2022-23 season, an Rs. 250 increase over the previous year.

Shivani Meena
MSP for Raw jute received a hike
MSP for Raw jute received a hike

The Minimum Support Price (MSP) for raw jute for the 2022-2023 season was approved by the Cabinet Committee on Economic Affairs on Tuesday. The MSP for raw jute has been set at Rs. 4,750 per quintal for the 2022-2023 season, which is Rs. 250 higher than the previous season, according to an official announcement.

It stated that "this would provide a return of 60.53 percent over the All India weighted average cost of production."

The announced price follows the government's announcement in the 2018-2019 Budget that the MSP should be set at least 1.5 times the all-India weighted average cost of production, and is based on the Commission for Agricultural Costs and Prices recommendations. According to the press release, it guarantees a profit margin of at least 50%.

Jute, like cotton, is an important natural fiber crop in India. Jute and Mesta crops are known as raw jute in trade and industry since their applications are almost identical.

Raw jute is crucial to the economy of our nation. Initially, raw jute was thought to be a raw material source exclusively for the packaging sector.

However, it has recently emerged as a versatile raw material for a wide range of uses, including textile and paper industries, building and automotive industries, usage as a soil saver, ornamental and furnishing materials, and so on. Because raw jute is biodegradable and renewable year after year, it is regarded as an environmentally friendly crop that aids in the preservation of the ecosystem and ecological balance.

Therefore, an increase in MSP for Jute is one of the crucial and progressive measures toward assuring greater remunerative returns to jute producers and incentivizing high-quality jute fiber.

The central government nodal body for the price support operation would remain the Jute Corporation of India (JCI). They would be completely paid by the central government if there were any losses during the operation.

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