In a proposal for financial support to Jute Corporation of India, the government has approved mandatory packaging of sugar and food-grains in jute material to minimum extent of up to 90% of production, with certain exemptions. The government has approved this proposal to offset the losses suffered by Jute Corporation of India on account of Minimum Support Price (MSP) operations.
Meanwhile, for sugar, minimum packaging requirement has been fixed at 20% of production for jute year 2014-15. Both the decisions are aimed at protecting the interests of jute growers through procurement of raw jute under the MSP fixed by the government and also to stabilize the raw jute market for the benefit of 40 lakh farm families and the jute economy as a whole.
Further, the financial assistance to Jute Corporation of India (JCI) will be provided in the form of subsidy. The quantum of subsidy will include the difference between the purchase and sale price of MSP Raw Jute. The quantum of subsidy will also include fixed overhead costs incurred by JCI in maintaining its infrastructure for Minimum Support Price (MSP) operation.