The Union Cabinet on Tuesday increased the minimum support price (MSP) of raw jute by Rs 250 to Rs 4,750 per quintal for the 2022-23 season. The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, also approved extension of applicability of 'New Investment Policy-2012' for three upcoming units of Hindustan Urvarak & Rasayan Ltd (HURL) at Gorakhpur, Sindri and Barauni. The CCEA approval of increasing MSP of raw jute is based on recommendations of Commission for Agricultural Costs and Prices. "The MSP of raw jute (TDN3 equivalent to TD5 grade) has been fixed at Rs 4,750 per quintal for 2022-23 season with an increase of Rs 250 over previous year. This would ensure a return of 60.53 per cent over all India weighted average cost of production," an official statement said. Jute Corporation of India (JCI) will continue as Central Government nodal agency to undertake price support operations and losses incurred, if any, in such operations, will be fully reimbursed by Centre."It assures a minimum of 50 per cent as margin of profit. It is one of important and progressive steps towards ensuring better remunerative returns to jute growers and to incentivise quality jute fibre," the statement said. HURL, incorporated in June, 2016, is a joint venture of Coal India Ltd, NTPC and Indian Oil Corporation. It is reviving erstwhile Gorakhpur and Sindri Units of FCIL and Barauni Unit of GFCL by setting up new gas based urea plants with an installed capacity of 12.7 lakhtonnes per annum. each.
The cost of the three HURL urea projects is Rs 25,120 crore. GAIL is supplying natural gas to these three units. The commissioning of the three units will add 38.1 lakh tonnes per annum urea production in the country.
The project will not only improve the availability of fertiliser to farmers but also give a boost to the economy in the region including development of infrastructure like roads, railways, ancillary industry etc. Besides ensuring food security to the nation, said the statement.