MSP for Jute

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Overview:

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister of India, has given its approval for the Minimum Support Price (MSP) for Raw Jute for the 2023-24 season.

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