MSP of raw jute for 08-09 hiked by Rs 195: CCCEA

New Delhi, Jan 30 (UNI) The minimum statutory price (MSP) of raw jute for 2008-09 season was today fixed at Rs 1,250 a quintal for Tosa Desi-5 grade of jute ex-Assam, a hike of Rs 195 over the 2007-08 season.

Announcing this, Finance Minister P Chidambaram told reporters after the Cabinet Committee on Economic Affairs meeting, which went into the matter that 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.

"The higher MSP is expected to encourage the farmers to invest more for improving quality and yield of jute in the country," Mr Chidambaram 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.

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