The government has increased the minimum support price (MSP) for raw jute by Rs. 250 per quintal, taking the price to Rs. 3,950 per quintal for the 2019-20 season, according to an official statement. The decision was taken by the Cabinet Committee on Economic Affairs on Wednesday. India is the world’s largest producer of raw jute and West Bengal accounts for the majority of the country’s production, according to the National Jute Board. The hike is slightly higher than last year’s Rs. 200/quintal increase. However, over the last year production costs have also gone up significantly. Thus, while last year’s MSP yielded returns of 63.2% above the weighted average cost of production, the new MSP will only yield returns of 55.81% over production costs, according to the statement. Production costs include paid-out costs as well as the imputed value of unpaid family labour. The Jute Corporation of India will continue to act as the Central nodal agency to undertake price support operations at MSP in jute-growing States.