The Cabinet Committee
on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi
has given its approval for the increase in the Minimum Support Price (MSP)
for raw Jute for 2017-18 season in order to protect the economic
interests of the farmers.
The CCEA has increased the MSP to a level of Rs. 3500/- per quintal for
2017-18 season which indicates an increase of Rs. 300/- (9.4%) over the
previous year. During last three years (2015-16, 2016-17 & 2017-18),
Government has increased the MSP for jute from Rs. 2700/- to Rs. 3500/-
(29.6%) as compared to increase from Rs.2200/- to Rs. 2400/- (9.1%) in
the preceding three years (2012-13, 2013-14 & 2014-15).
Jute is mainly used as raw material for Packaging Industry. 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 organised 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.
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
under National Food Security Mission (NFSM)-Commercial Crops. National
Seeds Corporation Limited has entered into agreement for promotion of
new varieties of jute seeds in the jute growing states.