Farmers celebrate..! MSP for raw jute escalates to Rs 3950 coming season

NewsBharati    14-Feb-2019
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New Delhi, February 14: It’s a news to celebrate by the farmers engaged in production of Raw Jute as they are likely to earn a raised assure income for the coming year. The extant Minimum Support Price(MSP) for the raw jute has been raised to Rs 3950 from Rs 3700 per quintal for season 2019-20.
 
 
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister has given its approval in to benefit the farmers by Rs 250 behind per quintal in the coming financial year.
The raised MSP would yield returns of 55.81 per cent over the all India weighted average cost of production. “The MSP of Raw Jute is expected to ensure appropriate minimum prices to the farmers and step up investment in Jute cultivation and thereby production and productivity in the country”, stated Goyal while addressing the cabinet decisions.
Meanwhile, the Jute Corporation of India would continue to act as Central Nodal Agency to undertake price support operations at the MSP in the Jute growing states.
The increased MSP is based on recommendations of Commission for Agricultural Costs and Prices (CACP) which while recommending MSP takes into account the cost of production, overall demand-supply, domestic and international prices, inter-crop price parity, terms of trade between agricultural and non-agricultural sectors and the likely impact of MSP on user industries and a minimum 50% as the margin over the weighted average cost of production.