Govt hikes raw jute MSP by Rs 300 to Rs 5,050 per quintal

New Delhi: The government on Friday increased the minimum support price of raw jute by Rs 300 to Rs 5,050 per quintal for 2023-24 season.

The decision was taken at the Cabinet Committee on Economic Affairs (CCEA) meeting chaired by Prime Minister Narendra Modi.

"The approval is based on recommendations of the Commission for Agricultural Costs and Prices (CACP)," I&B Minister Anurag Thakur told reporters.

The MSP of Raw Jute (TD-3 equivalent to earlier TD-5 grade) has been fixed at Rs 5,050 per quintal for 2023-24 season.

Thakur said the decision would ensure a return of 63.2 per cent over the all India weighted average cost of production.

The announced MSP of raw jute for 2023-24 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 the Budget 2018-19, an official release said.

The Jute Corporation of India (JCI) will continue as the 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.