Jute is mainly used as raw material for Packaging Industry. The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi in order to protect the economic interests of the farmers has given its approval for the increase in the Minimum Support Price (MSP) for raw Jute to a level of Rs35000/- per quintal for 2017-18 season which indicates an increase of Rs. 300/- (9.4%) over the previous year.

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.

The Cabinet also approved setting up of Government e-Marketplace Special Purpose Vehicle (GeM SPV) as a national portal for procurement of goods and services required by the Central and State government organizations.

The GeM SPV shall provide an end to end online marketplace for central and state government departments, central and state PSUs, autonomous bodies and local bodies for procurement of common use goods and services in a transparent and efficient manner.

Under National Food Security Mission (NFSM)-Commercial Crops, 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. National Seeds Corporation Limited has entered into agreement for promotion of new varieties of jute seeds in the jute growing states.