Minimum support price for jute

Minimum support price for jute

Part of: Prelims and GS III – Economy

Context: The Cabinet Committee on Economic Affairs on Tuesday approved the Minimum Support Price (MSP) for raw jute for the 2022-2023 season.

• According to an official release, the MSP of raw jute has been fixed at Rs. 4,750 a quintal for 2022-2023 season, which is Rs. 250 higher than the previous season.

What is Minimum Support Price (MSP)?

• Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure farmers against any sharp fall in farm prices.
  • MSP is price fixed to protect the farmers against excessive fall in price during bumper production years.
• The MSPs are announced by the Government of India at the beginning of the sowing season for certain crops on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP). 
• The major objectives are to support the farmers from distress sales and to procure food grains for public distribution.
• Government announces minimum support prices (MSPs) for 22 mandated crops and fair and remunerative price (FRP) for sugarcane.
• These are:
  • Cereals (7) – paddy, wheat, barley, jowar, bajra, maize and ragi
  • Pulses (5) – gram, arhar/tur, moong, urad and lentil
  • Oilseeds (8) – groundnut, rapeseed/mustard, toria, soyabean, sunflower seed, sesamum, safflower seed and nigerseed
  • Raw cotton
  • Raw jute
  • Copra
  • De-husked coconut
  • Sugarcane (Fair and remunerative price)
  • Virginia flu cured (VFC) tobacco

News Source: TH