MSP for Jute

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About Jute:

Jute is one of the most important natural fibres after cotton in terms of cultivation and usage
Climatic conditions required for its growth
- Temperature: Between 25-35°C
- Rainfall: Around 150-250 cm
- Soil Type: Well-drained alluvial soil.
India is the largest producer of jute followed by Bangladesh and China.
It is mainly grown in eastern India because of the rich alluvial soil of the Ganga-Brahmaputra delta.
In India, major jute-producing states include West Bengal, Bihar, Odisha, Assam, Andhra Pradesh, Meghalaya and Tripura.

What is the Minimum support price?

A minimum support price (MSP) is a minimum price for any crop that the Government considers as remunerative for farmers and hence deserving of “support”.
It is also the price that Government agencies pay whenever they procure a particular crop from the farmers.
There is currently no statutory backing for these prices, nor any law mandating their enforcement.
Crops covered under MSP: At present, the Central Government sets MSP for 23 crops.
- 7 cereals (Bajra, wheat, maize, paddy barley, ragi and jowar);
- 5 pulses (tur, chana, Masur, urad and moong);
- 7 oilseeds (sunflower, mustard, niger seed, soya bean, groundnut, sesame and sunflower);
- 4 commercial crops (raw jute, cotton, copra and sugarcane).

How does the Government decide on the MSP?

The Government announces the MSP at the start of each cropping season (Rabi and Kharif).
The MSP is decided after the Government exhaustively studies the recommendations made by the Commission for Agricultural Costs and Prices (CACP).
CACP is an attached office of the Ministry of Agriculture and Farmers Welfare.

Q1) What is Commission for Agricultural Costs & Prices?

The Commission for Agricultural Costs & Prices (CACP) is an attached office of the Ministry of Agriculture and Farmers Welfare, Government of India. It came into existence in January 1965. Currently, the Commission comprises a Chairman, Member Secretary, one Member (Official) and two Members (Non-Official). The non-official members are representatives of the farming community and usually have an active association with the farming community.

Source: Cabinet approves Minimum Support Price (MSP) for Raw Jute for 2023 -24 season