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Govt panel seeks MSP revamp, safety net to mitigate risks to farmers -Sayantan Bera

-LiveMint.com

Panel suggests floor price for foodgrain at a 10% premium to costs; safety net to kick in if prices fall below MSP

New Delhi: In what could restore the terms of trade in favour of agriculture, a government panel has recommended a new cost-linked minimum support price (MSP) and a safety net for farmers.

The recommended MSP, or the floor price for foodgrain, will be at a 10% premium to costs, that would be derived through a formula. The panel proposed that the safety net will kick in in the event of an unexpected slump in prices below the MSP.

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