New Delhi, Mar 7 (IANS): The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Thursday, gave its approval for raising the Minimum Support Prices (MSP) for raw jute by Rs 285 per quintal in the 2024-25 season.

The MSP of raw jute (TDN-3 equivalent to earlier TD-5 grade) has been fixed at Rs 5,335 per quintal for the 2024-25 season. This would ensure a return of 64.8 per cent over the all-India weighted average cost of production.

The announced MSP of raw jute for the 2024-25 season is in line with the principle of fixing the MSP at a level of at least 1.5 times the all-India weighted average cost of production as announced by the government in the Budget 2018-19, according to an official statement issued after the CCEA meeting.

The decision is based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).

In the last 10 years, the government has increased MSP for raw jute from Rs 2,400 per quintal in 2014-15 to Rs 5,335 per quintal in 2024-25, registering a growth of 122 per cent.

In the current season 2023-24, the government has procured a record amount of more than 6.24 lakh bales of raw jute, at the cost of Rs 524.32 crore, benefitting around 1.65 lakh farmers.

The Jute Corporation of India (JCI) will continue as the Central government nodal agency to undertake price support operations and the losses incurred, if any, in such operations, will be fully reimbursed by the Central government, the statement added.