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Jute stocks surge after CCEA hikes MSP

NEW DELHI: Shares of jute product manufacturers surged on Thursday after the Cabinet Committee of Economic Affairs hiked the minimum support price for raw jute.

Ludlow Jute & Specialities was up 4.69 per cent and Gloster rose 4.52 per cent.

The government on Wednesday hiked MSP for raw jute to Rs 3,950 per quintal for 2019-20 season, from Rs 3,700 in the previous season.

“MSP would yield returns of 55.81 per cent over the all-India weighted average cost of production. MSP of raw jute is expected to ensure appropriate minimum prices to the farmers and step up investment in jute cultivation and thereby production and productivity in the country,” an official statement said.

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(With inputs from PTI)

Source: Economic Times