The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, Shri Narendra Modi, today approved the Minimum Support Price (MSP) for Raw Jute for 2022-23 season. The approval is based on recommendations of the Commission for Agricultural Costs and Prices.

The MSP of Raw Jute (TDN₃ equivalent to TD₅ grade) has been fixed at ₹ 4750/- per quintal for 2022-23 season with an increase of ₹ 250/- over the previous year. This would ensure a return of 60.53 percent over all India weighted average cost of production. The announced MSP of raw jute for 2022-23 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.

It assures a minimum of 50 percent as margin of profit. It is one of the important and progressive steps towards ensuring better remunerative returns to the jute growers and to incentivize quality jute fibre.

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

Minimum Support Price for raw jute to bolster producer returns and mandate government reimbursement for procurement losses. Approval sets the Minimum Support Price for raw jute for the 2022-23 season in accordance with recommendations, raising the MSP to secure a substantial margin over the all-India weighted average cost of production and to incentivise quality jute fibre. The Jute Corporation of India is designated as the Central Government nodal agency to undertake price support operations, and any losses incurred in such operations will be fully reimbursed by the Central Government.