The Cabinet Committee on Economic Affairs has hiked Minimum Support Price (MSP) of raw jute from 2,700 to 3,200 rupees per quintal.
Decision in this regard was taken during CCEA meeting headed by Prime Minister Narendra Modi in New Delhi. The hike has been done for the year 2016-17 to boost production.
The MSP was hiked by CCEA based on the proposal forwarded by Union Agriculture Ministry had in order increase the raw jute cultivation which has been declining in recent years.
In 2015-16, the area under raw jute has reduced to 7.5 lakh hectare from little over 8 lakh hectare in year 2016-17. Jute farming is providing livelihood to more than 40 lakh farmers in West Bengal, Odisha, Assam and eastern Bihar.
About Minimum Support Price (MSP)
- MSP is a form of agricultural market intervention undertaken by the Union Government in order to insure agricultural producers are protected against any sharp fall in farm prices.
- It is announced for certain crops by the Union Government prior to the sowing season.
- The prices are decided by CCEA on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP).