The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has approved providing financial support to the JCI, it has been decided to provide subsidy to Jute Corporation of India (JCI) on a continuous basis to off-set the losses on account of Minimum Support Price (MSP) operations by JCI.
The quantum of subsidy will include the difference between the Purchase and Sale Price of MSP Raw Jute. The quantum of subsidy will also include fixed overhead costs incurred by JCI in maintaining its infrastructure for MSP operation. The reimbursement of fixed overhead cost would be maintained albeit at a reducing amount as per the details given below:
In Rs. Crore
| 2014-15 | 2015-16 | 2016-17 | 2017-18 | |
| Annual subsidy/ Grant for maintaining its infrastructure for MSP operations. |
55.00 | 52.11 | 49.38 | 46.78 |
The decision will provide financial support to Jute Corporation of India to protect the interest of the Jute Growers through procurement of Raw Jute under the MSP fixed by the Government of India and also to stabilize the raw jute market for the benefit of the 40 lakh farm families and the jute economy as a whole.
JCI is the Price Support Agency of the Govt. of India for jute to protect the interest of the Jute Growers through procurement of Raw Jute under the MSP fixed by the Govt. of India from time to time and also to stabilize the raw jute market for the benefit of the jute farmers and the jute economy as a whole. To enable JCI to conduct MSP operation and be in preparedness for MSP at the start of every year, yearly grant is provided to the JCI to meet its operational expenditure & overheads for MSP preparedness.