Hike in MSP of jute to Rs 2,400 per quintal for 2014-15 season

Cabinet Committee on Economic Affairs (CCEA) cleared the proposal on hiking minimum support price(MSP) of jute. Government has hiked the minimum support price (MSP) of jute by Rs 100 to Rs 2,400 per quintal for 2014-15 season. The hike in MSP is expected to prompt farmers to increase investment in jute cultivation and boost production.

Jute MSP of TD-5 variety has been increased by Rs 100 per quintal, Finance Minister P Chidambaram told reporters after the CCEA meeting.

In order to incentivize farmers for the production of higher grades, the premiums for TD-3 and TD-4 varieties of raw jute will be maintained at 20 per cent and 8 per cent respectively in relation to the price of TD-5, an official statement said.

MSP for jute stood at Rs 2,300 per quintal last season.

The Jute Corporation of India (JCI) will continue to act as the nodal agency of the Ministry of Textiles for procurement of raw jute.

Jute is largely cultivated in Assam, Bihar, Meghalaya, Nagaland, Orissa, West Bengal and Tripura.

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