Cabinet approves hike in raw jute MSP to Rs 5,335 per quintal for 2024-25 season

The decision to hike MSP on jute was taken at the CCEA meeting on March 7.

The Cabinet Committee on Economic Affairs (CCEA), on March 7, approved a hike in the Minimum Support Price (MSP) of raw jute for the 2024-25 season to Rs 5,335 per quintal. This is up from the current MSP of Rs 5,050 per quintal.

As such, the MSP hike amounts to an increase of 5.6 percent. This is slightly lower than the 6.3 percent hike announced for 2023-24 from Rs 4,750 per quintal.

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"The decision is based on recommendations of the Commission for Agricultural Costs and Prices (CACP)," the government said in a statement.

"The Jute Corporation of India (JCI) will continue as Central Government Nodal Agency to undertake Price Support Operations and the losses incurred, if any, in such operations, will be fully reimbursed by the Central Government," it added.

Commerce Minister Piyush Goyal said in a briefing that the hike in the raw jute MSP will directly benefit 40 lakh jute farmer households. Further, around 5 lakh workers involved directly and indirectly in jute mills will also stand to gain, the minister added.

"Jute farmers in many states will gain from this… It (new MSP) is the cost plus 65 percent," Goyal said.

"I am confident that this decision will help jute farmers, especially those in eastern India… The biggest gain from this MSP hike will be for West Bengal. Jute farmers in Bihar, Assam, and Odisha will also benefit," he added.

In the current 2023-24 season, the government has procured more than 6.24 lakh bales of raw jute at a cost of Rs 524.32 crore. This, according to the government, has benefitted around 1.65 lakh farmers.