The govt. proposes to issue a new minimum support price (MSP) for jute by September end. The textile minister assured that the new MSP would be fixed after considering factors like size of the jute crop and expected quantity of production of foodgrains and sugar.

Textile minister said the govt. had been taking a balanced view in the matter, considering all aspects of the issue as well keeping in mind the interest of jute farmers and workers. The minister said govt. had increased the MSP of raw jute to Rs.750 per quintal in ‘99-00, which was later increased to Rs.758 for ‘00-01. Besides, he said the Jute Corporation of India (JCI) had already made provisions for purchasing 8,900 quintals of raw jute under MSP scheme.

To protect the interests of jute growers and workers, govt. had enacted the Jute Packaging Materials Act, which provided for reserving packaging of foodgrains up to 90% and for 15 per cent for urea, he added.

Market Update
(Jute)