Jute Corporation of India Boosts Farmer Support with Increased MSP

The Jute Corporation of India (JCI) has raised the Minimum Support Price (MSP) for raw jute to Rs 5,335 per quintal for the 2024-25 season. Despite reduced production projections, prices have dropped below Rs 5,000 per quintal due to low demand. JCI's MSP procurement aims to protect farmers from distress sales.

The Jute Corporation of India (JCI) has initiated its Minimum Support Price (MSP) operations for raw jute, effective from Monday, a senior official confirmed. The government has elevated the MSP for raw jute by Rs 285, setting it at Rs 5,335 per quintal for the upcoming 2024-25 season.

For the current season of 2023-24, the government has achieved a record procurement of over 7.24 lakh bales of raw jute, amounting to an expenditure exceeding Rs 500 crore, thereby benefiting approximately 1.70 lakh farmers. This marks a substantial rise compared to the procurement of 2.3 lakh bales in the 2022-23 season.

Despite anticipated reductions in production by the Expert Committee on Jute (ECJ), the market price for the ‘golden fibre’ has fallen below Rs 5,000 per quintal. This price drop contrasts with the MSP of Rs 5,335 per quintal set for the 2024-25 season, primarily attributed to diminished orders for Gunny Burlap Textile (GBT) bags by the Food Corporation of India (FCI) and State Procuring Agencies (SPAs). Mills are reportedly holding substantial old stock.

JCI General Manager, K Mazumdar, stated that the agency has no limitations on the quantity of jute it can procure. Currently, 110 direct JCI procurement centres are operational, along with 25 additional outsourced centres, to facilitate this process.

JCI’s direct procurement from farmers aims to shield them from distress sales. Additionally, Mazumdar highlighted that stakeholders and farmers could leverage the ‘Patsan app’ to access comprehensive MSP operation details, including production support.