The Cabinet Committee on Economic Affairs (CCEA) has given its approval for the increase in the Minimum Support Price (MSP) for raw Jute for 2017-18 season. The CCEA has increased the MSP to a level of Rs 3,500 per quintal for 2017-18 season which indicates an increase of Rs 300 (9.4%) over the previous year.
During last three years (2015-16, 2016-17 & 2017-18), Government has increased the MSP for jute from Rs 2,700 to Rs 3,500 (29.6%) as compared to increase from Rs 2,200 to Rs 2,400 (9.1%) in the preceding three years (2012-13, 2013-14 & 2014-15).
The increase in MSP would benefit the Jute industry which supports the livelihood of around 40 lakh farm families and provides direct employment to 3.7 lakh workers in organized mills and in diversified units including tertiary sector and allied activities. These farm families are mainly concentrated in the States of West Bengal, Bihar and Assam which account for over 95% of the area as well as jute production in the country.