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LATEST NEWS UPDATES | 'Wrong Cost Calculation': Modi Govt's Big Move to Woo Farmers Gets a Thumbs Down -Rounak Kumar Gunjan

'Wrong Cost Calculation': Modi Govt's Big Move to Woo Farmers Gets a Thumbs Down -Rounak Kumar Gunjan

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published Published on Jul 5, 2018   modified Modified on Jul 5, 2018
-News18.com

CCEA in its meeting on Wednesday approved an increase in MSP for summer crops, especially paddy and dal, as a move to fulfil its Budget promise and address farmers' concerns about the cost of crops.

New Delhi:
The Cabinet’s decision to increase minimum support price (MSP) for Kharif crops, intended to appease farmers, does not seem to have struck the right chord.

CCEA in its meeting on Wednesday approved an increase in MSP for summer crops, especially paddy and dal, as a move to fulfil its Budget promise and address farmers' concerns about the cost of crops.

The increase, however, is based on A2+FL formula, which takes into account actual cost plus the imputed value of family labour in the production of a crop.

Farmer associations across the country are unhappy with the cost calculations as they expected C2 costs to be taken into consideration. This formula factors in multiple costs, including imputed rent on land and interest on capital, which makes the cost of production much higher.

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News18.com, 4 July, 2018, https://www.news18.com/news/india/wrong-cost-calculation-modi-govts-big-move-to-woo-farmers-gets-a-thumbs-down-1801005.html


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