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Cabinet approves 9.4% hike in raw jute MSP for 2017-18 season

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Capital Market
Last Updated : Apr 12 2017 | 7:47 PM IST

Raw jute MSP fixed at Rs 3500 per quintal for 2017-18 season

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi has given its approval for the increase in the Minimum Support Price (MSP) for raw Jute for 2017-18 season in order to protect the economic interests of the farmers.

The CCEA has increased the MSP to a level of Rs 3500 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 2700/- to Rs 3500/- (29.6%) as compared to increase from Rs 2200/- to Rs 2400/- (9.1%) in the preceding three years (2012-13, 2013-14 & 2014-15).

Jute is mainly used as raw material for Packaging Industry. 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 organised 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.

New varieties of jute viz., JRO-204, JBO-2003, JRS-517, JRC-532 and JRO-2407 are being promoted by providing support for seeds production under National Food Security Mission (NFSM)-Commercial Crops. National Seeds Corporation Limited has entered into agreement for promotion of new varieties of jute seeds in the jute growing states.

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First Published: Apr 12 2017 | 7:24 PM IST

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