New Delhi, Jan 30 : The Cabinet Committee on Economic Affairs (CCEA) today approved the minimum support price (MSP) for raw jute at Rs 1,250 per quintal.
The increase in MSP for raw jute for 2008-09 is Rs.195 per quintal over the MSP fixed at Rs.1055 per quintal for 2007-08.
"The corresponding MSP for other varieties and grades of raw jute across locations will be fixed by the Ministry of Textiles keeping in view, the aggregate scores assigned to different grades of jute, apart from their normal market price differentials," a government release said.
"The Jute Corporation of India will continue to act as Central nodal agency to undertake price support operations and the losses incurred, if any, will be reimbursed by the Central Government," the release added.
The higher MSP is expected to encourage the farmers to invest more for improving quality and yield of jute.