The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for the increase in the Minimum Support Price (MSP) for Raw Jute for 2018-19 season.

The Minimum Support Price (MSP) for Fair Average Quality (FAQ) of Raw Jute has been increased to ₹ 3700/- per quintal for 2018-19 season from ₹ 3500/- per quintal in 2017-18 season.

The MSP would yield returns of 63.2 percent over the weighted average A₂+FL cost of production. The MSP of Raw Jute is expected to ensure appropriate minimum prices to the farmers and step up investment in Jute cultivation and thereby production and productivity in the country.

The increased MSP is based on recommendations of Commission for Agricultural Costs and Prices (CACP) which while recommending MSP takes into account the cost of production, overall demand-supply, domestic and international prices, inter-crop price parity, terms of trade between agricultural and non-agricultural sectors and the likely impact of MSP on the rest of the economy.

The Jute Corporation of India would continue to act as Central Nodal Agency to undertake price support operations at the Minimum Support Prices in the Jute growing states.

Minimum Support Price increase for raw jute ensures minimum returns to farmers and promotes investment in jute cultivation. Approval of an upward revision in the Minimum Support Price for Fair Average Quality raw jute for the 2018-19 season, raising the guaranteed floor price to provide returns above the weighted A2+FL cost of production. The increase is intended to secure minimum returns to farmers and promote investment, production and productivity in jute cultivation. The revision follows recommendations by the statutory price advisory mechanism which factors cost of production, demand supply, price parity and macro economic impact, and price support operations will be conducted by the central nodal agency in jute growing states.