New Delhi: To bolster the agricultural sector, the Cabinet Committee on Economic Affairs, under the leadership of Prime Minister Narendra Modi, has granted approval for the Minimum Support Prices (MSP) for Raw Jute for the upcoming 2024-25 season.
The approved MSP for Raw Jute, specifically the TDN-3 equivalent to the earlier TD-5 grade, has been set at Rs.5,335/- per quintal for the 2024-25 season. This decision is poised to provide farmers with a return of 64.8 percent over the all India weighted average cost of production, reinforcing the government’s commitment to ensuring fair compensation for agricultural efforts.
The announcement aligns with the government’s policy, introduced in the Budget 2018-19, of fixing the MSP at a level of at least 1.5 times the all India weighted average cost of production. The decision is based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), emphasizing the importance of evidence-based policy-making in the agricultural sector.
The approved MSP for the upcoming season reflects an increase of Rs.285/- per quintal for Raw Jute compared to the previous season. Over the past decade, the government has consistently raised the MSP for Raw Jute, witnessing a notable growth of 122 percent from Rs.2,400 per quintal in 2014-15 to the current Rs.5,335/- per quintal for the 2024-25 season.
In the ongoing 2023-24 season, the government has achieved a significant milestone by procuring a record-breaking amount of more than 6.24 lakh bales of Raw Jute. This procurement, at a cost of Rs.524.32 crore, has directly benefited approximately 1.65 lakh farmers across the country.
The Jute Corporation of India (JCI) will continue to serve as the Central Government Nodal Agency responsible for undertaking Price Support Operations. Any losses incurred during these operations will be fully reimbursed by the Central Government, demonstrating its unwavering commitment to supporting farmers and ensuring the stability of the agricultural sector.
This decision marks a positive step forward in strengthening the agricultural ecosystem, providing a fair and lucrative environment for farmers engaged in the cultivation of Raw Jute. The government’s consistent efforts to enhance MSP and procurement levels underscore its dedication to the well-being of the farming community and the overall prosperity of the agricultural sector.