Agriculture Ministry proposes to raise MSP of Jute by 18.5% for 2016-17

The Agriculture Ministry has proposed an increase in Minimum Support Price (MSP) of raw jute to Rs 3,200 per quintal for 2016-17 in order to boost production. This is a hike of 18.5% as compared to the jute support price which has been fixed at Rs 2,700 per quintal for 2015-16. The recommendation of increase in MSP by Agriculture Ministry is in line with the recommendations of Commission for Agricultural Costs and Prices (CACP), a statutory body that advises the government on the pricing policy for major farm produces.

The Agriculture Ministry has proposed an increase in the MSP price of jute since the cultivation of raw jute has been declining in recent years. Area under raw jute has reduced to 7.5 lakh hectare in 2015-16, from little over 8 lakh hectare last year.

Further, in the states of West Bengal, Assam, Odisha and eastern Bihar, Jute is providing livelihood to more than 40 lakh farmers. It is also the raw material for jute mills, which employ 3.75 lakh workers.