Centre hikes jute MSP by over 14 pc

NEW DELHI: The Centre on Friday increased the minimum support price of jute by over 14 per cent to Rs 1,575 per quintal for 2010-11.

The decision to hike the minimum support price (MSP) for the TD-5 grade (ex-Assam) variety of jute was taken at the meeting of the Cabinet Committee on Economic Affairs (CCEA).

"The increase in the MSP of raw jute is expected to encourage the farmers to step up investment in jute cultivation and thereby production and productivity of Jute in the country," the official statement said.

Jute MSP was at Rs 1,375 per quintal last year. The government also said that the Jute Corporation of India (JCI) would continue to act as the Nodal Agency to buy jute at the MSP level.

Jute production is estimated to be 96.98 lakh bales during 2009-10 season, compared with 96.34 lakh bales in a year-ago period. One bale is 180 kgs.

Major jute producing states in the country are West Bengal, Bihar, Assam, Orissa, Andhra Pradesh and Tripura.