MSP Current Affairs

CCEA approves 9.4% hike in raw jute MSP for 2017-18 season

The Cabinet Committee on Economic Affairs (CCEA) has approved 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 MSP was increased to Rs. 3500/- per quintal for 2017-18 season, an increase of Rs. 300/- (9.4%) over the previous year.

Key Facts
  • Jute is long, soft, shiny vegetable fiber mainly used as raw material for Packaging Industry. It is also called as the golden fiber for its colour and high cash value.
  • The increase in MSP will benefit Jute industry which supports the livelihood of around 40 lakh farm families and 3.7 lakh workers directly employed in the organised mills and in tertiary sector and allied activities.
  • These farm families are mainly concentrated in three eastern states viz. West Bengal, Bihar and Assam which account for over 95% of the total area under jute production in the country.
  • National Seeds Corporation Limited (NSCL) is promoting new varieties of jute viz., JRO-204, JBO-2003, JRS-517, JRC-532 and JRO-2407 under National Food Security Mission (NFSM)-Commercial Crops.
  • In this regard, NSCL has entered into agreement for promotion of new varieties of jute seeds in the jute growing states.

Tags:

CCEA hikes MSP of raw jute from Rs 2,700 to 3,200 per quintal

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).

Tags: