The Cabinet Committee on Economic Affairs (CCEA) is likely to hike minimum support price on jute, with sources informing CNBC Awaaz that the committee is considering a raise of 6-7%.
The Centre had, in February 2019, hiked the minimum support price for raw jute to Rs 3,950 per quintal for 2019-20 season from Rs 3,700 per quintal in the previous season.
The decision was taken at a meeting of the Cabinet Committee of Economic Affairs.
“The MSP would yield returns of 55.81 per cent over the All-India weighted average cost of production. The MSP of raw jute is expected to ensure appropriate minimum prices to the farmers and step up investment in jute cultivation and thereby production and productivity in the country,” the official statement had said.
The move comes less than a month ahead of assembly elections in West Bengal, which happens to be a hub of jute producers.
There are about 70 jute mills in the country, of which about 60 are in West Bengal along both the banks of river Hooghly. Jute production employs about two lakh workers in the West Bengal alone and four lakh workers across the country.
The Jute Corporation of India is the central nodal agency to undertake price support operations at the minimum support price in jute growing states.