Cabinet Approves MSP for Raw Jute 2025-26
Why focus: GS3 Agriculture classic trap — tests CCEA approval mechanisms and 66.8% return-over-cost formula. Highly likely How-Many-Correct MCQ.
In News
What Happened
Why It Matters
Background
History & Context
What Changed
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MSP Amount: BEFORE the MSP for raw jute in the 2024-25 season was Rs. 5,335 per quintal, NOW it is Rs. 5,650 per quintal for the 2025-26 season.
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Return over Cost: The margin was recalibrated to reflect updated input costs; NOW the government guarantees a specific 66.8 percent return over the all-India weighted average cost of production.
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Procurement Benchmark: Market interventions BEFORE were triggered below Rs. 5,335 per quintal, NOW the JCI will initiate procurement operations if market prices fall below the new Rs. 5,650 threshold.
Prelims Angle
NCERT Connection
Practice Questions
Q1
Correct Statement(s)Which of the following statements is/are correct regarding the Minimum Support Price (MSP) framework for raw jute? 1. The MSP for raw jute is recommended by the Commission for Agricultural Costs and Prices (CACP). 2. The Jute Corporation of India (JCI) serves as the central nodal agency for undertaking price support operations for jute.