The Cabinet Committee on Economic Affairs has approved the Minimum Support Price (MSP) for 2014-15 season for TD-5 grade of Jute at Rs.2400 per quintal for the entire country. This is an increase of Rs.100 per quintal over the MSP announced by the Government for the last season. The increase in the MSP of raw jute is expected to encourage farmers to step up investment in jute cultivation and thereby production and productivity of jute in the country.

In order to incentivize farmers for the production of higher grades, the premiums for TD-3 and TD-4 varieties of raw jute will be maintained at 20 percent and 8 percent respectively in relation to the price of TD-5.

The Jute Corporation of India (JCI) would continue to act as the nodal agency to undertake price support operation at MSP in jute growing states.

Minimum Support Price for raw jute raised; premium structure preserved and nodal agency to conduct price support operations. The government raised the Minimum Support Price for raw jute for the 2014-15 season for TD 5 grade, maintaining percentage premiums for higher grades to incentivize quality production, and retained the designated nodal agency to carry out price support operations in jute-growing regions at the declared MSP.