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CCEA approves Minimum Support Prices for Raw Jute for 2018-19 season

The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has given its approval for increase in Minimum Support Price (MSP) for Raw Jute for 2018-19 season. The MSP for Fair Average Quality (FAQ) of Raw Jute was increased to Rs.3700 per quintal for 2018-19 season from Rs. 3500 per quintal in 2017-18 season.

Key Facts

The increased MSP was based on recommendations of Commission for Agricultural Costs and Prices (CACP) which had taken into account cost of production, overall demand-supply, domestic and international prices before recommending MSP for Raw Jute.

The increased MSP of Raw Jute is expected to ensure appropriate minimum prices to farmers and step up investment in Jute cultivation and thereby production and productivity. The Jute Corporation of India (JCI) will continue to act as Central Nodal Agency to undertake price support operations at MSP in Jute growing states.

Minimum Support Price (MSP)

MSP is form of agricultural market intervention undertaken by Central Government in order to insure agricultural producers are protected against any sharp fall in farm prices. It is announced for certain crops by Central Government prior to sowing season.

Its purpose is to incentivize cultivators to adopt modern technology and raise productivity and overall production in line with the emerging demand patterns in the country. The prices are decided by CCEA on the basis of recommendations of the Commission for Agricultural Costs and Prices (CACP).

Commission for Agricultural Costs and Prices (CACP)

CACP is an expert body which recommend MSPs on various crops to Central Government (CCEA) by taking into account cost of production, trends in domestic and international prices. It is an attached office of the Ministry of Agriculture and Farmers Welfare. It came into existence in January 1965. Currently, CCEA comprises Chairman, Member Secretary, one Member (Official) and two Members (Non-Official). The non-official members are representatives from farming community and usually have active association with farming community.

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India highest recipient of Remittances in 2017: World Bank

According to recently released Migration and Development Brief by World Bank, India has retained top position as recipient of remittances with about $69 billion in 2017. India was followed by China ($64 billion), Philippines ($33 billion), Mexico ($31 billion), Nigeria ($22 billion) and Egypt ($20 billion).

Key Highlights of Migration and Development Brief

Global remittances: It grew 7% to US $613 billion in 2017, from US $573 billion in 2016. Global remittances are expected to grow 4.6% to $642 billion in 2018. It include flows to high-income countries. The stronger-than-expected recovery in remittances was driven by growth in Europe, Russia and US.

The rebound in global remittances was due to higher oil prices and strengthening of Euro and Ruble. The upsurge is likely to continue into 2018 on back of stronger economic conditions in advanced economies (particularly US) and increase in oil prices that may have positive impact on GCC (Gulf Cooperation Council) countries.

Low-and middle-income countries: Remittances received by these countries in 2017 has reached US $466 billion in 2017. This was an increase of 8.5% over US $429 billion in 2016. India received $69 billion remittances in 2017 as against $62.7 billion in 2016. It had picked up sharply by 9.9%, reversing previous year’s dip (8.9% in 2016), but was still short of $70.4 billion received in 2014.

Remittances to South Asia: It grew a moderate 5.8% to US $117 billion in 2017 and it will likely grow modestly by 2.5% to $120 billion in 2018. Flows to Pakistan (received US $20 billion) and Bangladesh (US $13 billion) were both largely flat in 2017, while Sri Lanka saw small decline (-0.9%).

Global average cost: The of sending $200 was 7.1% in Q1 of 2018, more than twice as high as Sustainable Development Goal (SDG) target of 3%. Sub-Saharan Africa remained most expensive place to send money to, where the average cost is 9.4%.

Transit migration: The transit migrants-who only stay temporarily in transit country, are usually not able to send money home.  Migration may help migrants to escape poverty or persecution, but many also become vulnerable to exploitation by human smugglers during transit. Host communities in transit countries may find their own poor population competing with new-comers for low-skill jobs.

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