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In a move that could provide some relief to the struggling jute industry and farmers in the country, the Cabinet Committee on Economic Affairs has given its approval for increasing the Minimum Support Price (MSP) for raw jute for 2017-18 season to ₹3,500/ quintal.
The Cabinet, which also met on Wednesday, approved measures to increase oil palm area and production by relaxing land ceiling limit under the National Mission on Oilseeds and Oil Palm (NMOOP).
The new MSP for jute approved by the CCEA for 2017-18 indicates an increase of ₹300 per quintal over the previous year, according to an official release.
“The increase in MSP would benefit the jute industry which supports the livelihood of around 40 lakh farm families and provides direct employment to 3.7 lakh workers in organised mills and in diversified units including tertiary sector and allied activities. These farm families are mainly concentrated in West Bengal, Bihar and Assam which account for over 95 per cent of the area as well as jute production in the country,” the release said.
The Cabinet approved relaxation in restrictions for providing assistance to more than 25 hectare area under NMOOP. The move is likely to attract corporate bodies towards oil palm and derive maximum benefit of 100 per cent FDI, the release said.
The Cabinet also gave its approval to revise the norms of assistance mainly for planting materials, maintenance cost, inter-cropping cost and bore-well to make oil palm plantations attractive.
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