Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 150
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 151
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 97
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
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A recent press release by the Cabinet Committee on Economic Affairs (CCEA) shows that the declared minimum support price (MSP) for most kharif crops to be marketed in 2019-20 is at least 50 percent above the cost of production.

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A recent press release by the Cabinet Committee on Economic Affairs (CCEA) shows that the declared minimum support price (MSP) for most kharif crops to be marketed in 2019-20 is at least 50 percent above the cost of production.

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    <h1 class="cat-box-title">A reality check indicates that MSP set for 2019-20's kharif crops is not 1.5 times the &#039;C2&#039; cost of production</h1>
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                            <p style="text-align:justify">&nbsp;</p><div style="text-align:justify">A recent <a href="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129" title="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129">press release</a> by the Cabinet Committee on Economic Affairs (CCEA) shows that the declared minimum support price (MSP) for most <em>kharif </em>crops to be marketed in 2019-20 is at least 50 percent above the cost of production.<br /><br />The official information related to the newly declared MSP, which came two days ahead of the <a href="https://im4change.in/siteadmin/tinymce/uploaded/Budget%20Speech%20Union%20Budget%202019-20%20dated%205%20July%202019.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/Budget%20Speech%20Union%20Budget%202019-20%20dated%205%20July%202019.pdf">Union Budget presentation</a>, gives <a href="https://im4change.in/siteadmin/tinymce/uploaded/Press%20release%203%20July%202019_1.jpg" title="Press release 3 July 2019" title="https://im4change.in/siteadmin/tinymce/uploaded/Press%20release%203%20July%202019_1.jpg" title="Press release 3 July 2019">the impression</a> that the newly re-elected NDA government has kept its promise of offering remunerative prices to farmers <em>(as <a href="https://im4change.org/latest-news-updates/farmers039-body-announces-nationwide-stir-against-modi-govt039s-msp-039betrayal039-neha-mehrotra-4685083.html" title="https://im4change.org/latest-news-updates/farmers039-body-announces-nationwide-stir-against-modi-govt039s-msp-039betrayal039-neha-mehrotra-4685083.html">demanded by various farmers&#39; organisations</a> in the recent past)</em>, which are <a href="https://im4change.in/siteadmin/tinymce/uploaded/Press%20release%203%20July%202019_1.jpg" title="Press release 3 July 2019" title="https://im4change.in/siteadmin/tinymce/uploaded/Press%20release%203%20July%202019_1.jpg" title="Press release 3 July 2019">at least 1.5 times the cost of production</a>.<br /><br />However, that may not be the case if the comprehensive cost of production <em>(termed as &#39;C2&#39;)</em> is taken into account instead of &#39;A2+FL&#39; cost of production -- the one that has been used for calculations by the government. Please note that in a <a href="https://im4change.org/news-alerts/msp-was-not-1-5-times-the-cost-of-production-for-most-kharif-crops-during-the-last-6-agricultural-years-4686336.html" title="https://im4change.org/news-alerts/msp-was-not-1-5-times-the-cost-of-production-for-most-kharif-crops-during-the-last-6-agricultural-years-4686336.html">previous news alert</a> dated 11th January 2019, Inclusive Media for Change had discussed that the Commission for Agricultural Costs and Prices (CACP) uses two broad concepts viz. &lsquo;A2&rsquo; cost and &lsquo;C2&rsquo; cost <em>(also called comprehensive cost)</em>.<br /><br />According to NITI Aayog member <a href="/upload/files/Ramesh%20Chand.pdf" title="/upload/files/Ramesh%20Chand.pdf">Prof. Ramesh Chand</a>, &lsquo;A2&rsquo; cost of production includes all expenses paid by the farmers in cash or kind during crop production like seed, fertiliser, manure, chemicals, hired human, bullock and machine labour, irrigation expenses, maintenance cost, etc. It also includes the imputed cost of own seed, manure, bullock and machine labour, rent paid for leased-in land, depreciation of assets and interest on working capital. However, &#39;C2&#39; cost of production is equal to the sum of &#39;A2&#39; cost of production, imputed cost of farmers&rsquo; own family labour (FL), interest on fixed capital and rental value of own rent. Thus, the value of &#39;C2&#39; is greater than the value of &#39;A2+FL&#39;.<br /><br />In the <a href="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129" title="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129">press release dated 3rd July</a>, 2019, the government has used &#39;A2+FL&#39; cost of production in order to show that the minimum support price of the 14 <em>kharif</em> crops is 1.5 times of the cost of production. This could be confirmed on the basis of calculations done by the Inclusive Media for Change team. It may be noted that the above-said <a href="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129" title="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129">press release</a> did not mention anything about the particular type of cost of production, which has been used by the government.<br /><br />Table-1 reveals that the relative difference between MSP and projected &#39;A2+FL&#39; cost of production <em>(which is estimated by the CACP)</em> is 50 percent or higher for all the 14 <em>kharif</em> crops during 2019-20 <em>kharif</em> marketing season (KMS). In other words, for all the 14 <em>kharif</em> crops the declared MSP is at least 50 percent over the &#39;A2+FL&#39; cost of production. For example, in case of <em>bajra</em> the declared MSP for 2019-20 is higher than the &#39;A2+FL&#39; cost of production by 84.67 percent. Please check the <span style="background-color:#ffff00">yellow shaded</span> cells/ figures of table-1. &nbsp;<br /><br /><strong>Table 1: Relative difference between fixed MSP (including bonus) and &#39;A2+FL&#39; Cost of Production (projected) of <em>kharif</em> crops (in percent)</strong><br /><br /><img alt="Table 1 Relative difference between fixed MSP including bonus and A2+FL Cost of Production projected of kharif crops in percent" src="https://im4change.in/siteadmin/tinymce/uploaded/Table%201%20Relative%20difference%20between%20fixed%20MSP%20including%20bonus%20and%20A2+FL%20Cost%20of%20Production%20projected%20of%20kharif%20crops%20in%20percent_1.jpg" style="height:595px; width:626px" /><br /><br /><em><strong>Note: </strong>Calculated by Inclusive Media for Change based on the formula of relative difference between MSP and Cost of Production</em><br /><br /><em><strong>Source: </strong>Figures related to MSP are accessed from:<br /><br />(i) Press release: A Government that cares for its Farmers, Press Information Bureau, Government of India, Cabinet Committee on Economic Affairs (CCEA), 3 July, 2019, please <a href="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129" title="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129">click here</a> to access&nbsp;&nbsp;<br />(ii) Minimum Support Prices Recommended by CACP and Fixed by Government (Crop Year), Ministry of Agriculture &amp; Farmers&#39; Welfare, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20of%20various%20crops%20in%20different%20years.doc" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20of%20various%20crops%20in%20different%20years.doc">click here</a> to access&nbsp;<br />(iii) MSP for kharif crops 2018-19, Ministry of Agriculture &amp; Farmers&#39; Welfare, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf">click here</a> to access&nbsp;<br />(iv) MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf">click here</a> to access&nbsp;<br />(v) MSP Rabi Crops to be marketed in 2019-20, Ministry of Agriculture &amp; Farmers&#39; Welfare, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20Rabi%20Crops%20marketing%20season%202019-20.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20Rabi%20Crops%20marketing%20season%202019-20.pdf">click here</a> to access&nbsp;</em><br />&nbsp;<br /><em>Figures related to &lsquo;A2+FL&rsquo; Cost of Production of kharif crops are accessed from:<br /><br />(i) CACP Report on Price Policy for Kharif crops of 2019-20 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=669" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=669">click here</a> to access<br />(ii) CACP Report on Price Policy for Kharif crops of 2018-19 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=615" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=615">click here</a> to access&nbsp;&nbsp;<br />(iii) CACP Report on Price Policy for Kharif crops of 2017-18 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=598" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=598">click here</a> to access&nbsp;&nbsp;<br />(iv) CACP Report on Price Policy for Kharif crops of 2016-17 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=574" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=574">click here</a> to access&nbsp;<br />(v) CACP Report on Price Policy for Kharif crops of 2015-16 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=547" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=547">click here</a> to access&nbsp;&nbsp;<br />(vi) CACP Report on Price Policy for Kharif crops of 2014-15 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=534" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=534">click here</a> to access&nbsp;&nbsp;<br />(vii) CACP Report on Price Policy for Kharif crops of 2013-14 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=519" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=519">click here</a> to access</em>&nbsp;&nbsp;<br />---<br /><br />Please note that the relative difference can be calculated using the following formula:<br /><br /><strong>Relative difference between MSP and Cost of Production = [{(<a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20fixed%20for%20kharif%20crops%20in%202019-20.jpg" title="MSP fixed for kharif crops in 2019-20" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20fixed%20for%20kharif%20crops%20in%202019-20.jpg" title="MSP fixed for kharif crops in 2019-20">MSP fixed for a particular kharif crop</a> in Rs. per quintal during a season) minus (Projected Cost of Production in Rs. per quintal -- either <a href="https://im4change.in/siteadmin/tinymce/uploaded/A2%20plus%20FL%20cost%20of%20production.jpg" title="A2 plus FL cost of production" title="https://im4change.in/siteadmin/tinymce/uploaded/A2%20plus%20FL%20cost%20of%20production.jpg" title="A2 plus FL cost of production">&#39;A2+FL&#39;</a> or <a href="https://im4change.in/siteadmin/tinymce/uploaded/C2%20cost%20of%20production.jpg" title="C2 cost of production" title="https://im4change.in/siteadmin/tinymce/uploaded/C2%20cost%20of%20production.jpg" title="C2 cost of production">&#39;C2&#39;</a>)} divided by (Projected Cost of Production in Rs. per quintal -- either <a href="https://im4change.in/siteadmin/tinymce/uploaded/A2%20plus%20FL%20cost%20of%20production.jpg" title="A2 plus FL cost of production" title="https://im4change.in/siteadmin/tinymce/uploaded/A2%20plus%20FL%20cost%20of%20production.jpg" title="A2 plus FL cost of production">&#39;A2+FL&#39;</a> or <a href="https://im4change.in/siteadmin/tinymce/uploaded/C2%20cost%20of%20production.jpg" title="C2 cost of production" title="https://im4change.in/siteadmin/tinymce/uploaded/C2%20cost%20of%20production.jpg" title="C2 cost of production">&#39;C2&#39;</a>)}] multiplied by one hundred.</strong><br /><br />Table-2 shows that for none of the 14 <em>kharif</em> crops, the declared MSP <em>(for 2019-20 KMS)</em> is 1.5 times the &#39;C2&#39; cost of production. Please check the negative figures in the <span style="background-color:#ffff00">yellow shaded cells</span> of table-2.&nbsp;<br /><br /><strong>Table 2: Relative difference between fixed MSP (including bonus) and &#39;C2&#39; Cost of Production (projected) of <em>kharif </em>crops (in percent)</strong><br /><br /><img alt="Table 2 Relative difference between fixed MSP including bonus and C2 Cost of Production projected of kharif crops in percent" src="https://im4change.in/siteadmin/tinymce/uploaded/Table%202%20Relative%20difference%20between%20fixed%20MSP%20including%20bonus%20and%20C2%20Cost%20of%20Production%20projected%20of%20kharif%20crops%20in%20percent_1.jpg" style="height:598px; width:626px" /><br /><br /><em><strong>Note: </strong>Same as in table-1<br /><br /><strong>Source: </strong>Same as in table-1</em><br />---<br /><br />Kindly note that the <a href="https://im4change.in/siteadmin/tinymce/uploaded/BJP%20Election%20Manifesto%202019.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/BJP%20Election%20Manifesto%202019.pdf">2019 election manifesto</a> of the Bharatiya Janata Party (BJP) clearly says that <em>&quot;in order to ensure remunerative prices for farmers, the minimum support price for 22 crops was increased to 1.5 times cost of production&quot; </em>by the previous National Democratic Alliance (NDA) government. However, the <a href="https://im4change.org/news-alerts/msp-was-not-1-5-times-the-cost-of-production-for-most-kharif-crops-during-the-last-6-agricultural-years-4686336.html" title="https://im4change.org/news-alerts/msp-was-not-1-5-times-the-cost-of-production-for-most-kharif-crops-during-the-last-6-agricultural-years-4686336.html">news alert</a> by Inclusive Media for Change dated 11th January, 2019 had shown that our farmers did not get 1.5 times the &lsquo;C2&rsquo; cost of production for <em>kharif</em> crops in the years between 2013-14 and 2018-19. Please refer to table-2.<br /><br />Table-3 indicates that in the case of the 14 <em>kharif</em> crops, on average the &#39;C2&#39; cost of production was higher than the &#39;A2+FL&#39; cost of production by 32.41 percent between 2013-14 and 2019-20 KMS. For example, in the case of paddy, the relative difference between &#39;C2&#39; and &#39;A2+FL&#39; cost of production (projected) was 31.45 percent on an average between 2013-14 and 2019-20 KMS.<br /><br /><strong>Table 3: Relative difference between &#39;C2&#39; and &#39;A2+FL&#39; Cost of Production (projected) of <em>kharif </em>crops (in percent)</strong><br /><br /><img alt="Table 3 Relative difference between C2 and A2+FL Cost of Production projected of kharif crops in percent" src="https://im4change.in/siteadmin/tinymce/uploaded/Table%203%20Relative%20difference%20between%20C2%20and%20A2+FL%20Cost%20of%20Production%20projected%20of%20kharif%20crops%20in%20percent.jpg" style="height:378px; width:639px" /><br /><em><strong>Note:</strong> Similar to the formula used in table-1<br /><br /><strong>Source:</strong> Same as in table-1</em><br />---<br /><br />Please <a href="https://im4change.org/news-alerts/msp-was-not-1-5-times-the-cost-of-production-for-most-kharif-crops-during-the-last-6-agricultural-years-4686336.html" title="https://im4change.org/news-alerts/msp-was-not-1-5-times-the-cost-of-production-for-most-kharif-crops-during-the-last-6-agricultural-years-4686336.html">click here</a>&nbsp;to read the key recommendations of the National Commission on Farmers pertaining to MSP.<br /><br /><br /><em><strong>References</strong></em><br /><br />A Government that cares for its Farmers, Press Information Bureau, Government of India, Cabinet Committee on Economic Affairs (CCEA), 3 July, 2019, please <a href="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129" title="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129">click here</a> to access&nbsp;<br /><br />Minimum Support Prices Recommended by CACP and Fixed by Government (Crop Year), Ministry of Agriculture &amp; Farmers&#39; Welfare, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20of%20various%20crops%20in%20different%20years.doc" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20of%20various%20crops%20in%20different%20years.doc">click here</a> to access&nbsp;<br /><br />MSP for <em>kharif</em> crops 2018-19, Ministry of Agriculture &amp; Farmers&#39; Welfare, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf">click here</a> to access<br /><br />MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf">click here</a> to access<br />&nbsp;<br />CACP Report on Price Policy for <em>Kharif </em>crops of 2019-20 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=669" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=669">click here</a> to access<br />&nbsp;<br />CACP Report on Price Policy for <em>Kharif</em> crops of 2018-19 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=615" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=615">click here</a> to access<br />&nbsp;<br />CACP Report on Price Policy for <em>Kharif </em>crops of 2017-18 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=598" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=598">click here</a> to access<br />&nbsp;<br />CACP Report on Price Policy for <em>Kharif</em> crops of 2016-17 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=574" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=574">click here</a> to access&nbsp;<br /><br />CACP Report on Price Policy for <em>Kharif</em> crops of 2015-16 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=547" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=547">click here</a> to access&nbsp;<br /><br />CACP Report on Price Policy for <em>Kharif </em>crops of 2014-15 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=534" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=534">click here</a> to access<br /><br />CACP Report on Price Policy for <em>Kharif</em> crops of 2013-14 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=519" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=519">click here</a> to access<br /><br />&ldquo;Status of Farmers&rsquo; Income: Strategies for Accelerated Growth&rdquo;, Inter-linkages between Input Costs, Diversification, Capital Formation and Income, Report of the Committee on Doubling Farmers&rsquo; Income Volume II, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/DFI%20Volume%202.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/DFI%20Volume%202.pdf">click here</a> to access<br /><br />Reports by the National Commission on Farmers, PRS Legislative Research, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/PRS%20Swaminathan%20Commission.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/PRS%20Swaminathan%20Commission.pdf">click here</a> to access<br />&nbsp;<br />The Swaminathan Commission reports, please <a href="https://ruralindiaonline.org/articles/all-reports-by-the-swaminathan-commission" title="https://ruralindiaonline.org/articles/all-reports-by-the-swaminathan-commission">click here</a> to access&nbsp;<br /><br />First Report Swaminathan Commission: Serving Farmers and Saving Farming, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/First%20Report%20Swaminathan%20Commission%20Serving%20Farmers%20and%20Saving%20Farming.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/First%20Report%20Swaminathan%20Commission%20Serving%20Farmers%20and%20Saving%20Farming.pdf">click here</a> to access<br />&nbsp;<br />Second Report Swaminathan Commission: Serving Farmers and Saving Farming: From Crisis to Confidence, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/Second%20Report%20Swaminathan%20Commission%20Serving%20Farmers%20and%20Saving%20Farming.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/Second%20Report%20Swaminathan%20Commission%20Serving%20Farmers%20and%20Saving%20Farming.pdf">click here</a> to access<br />&nbsp;<br />Third Report Swaminathan Commission: Serving Farmers and Saving Farming; 2006- Year of Agricultural Renewal, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/Third%20Report%20Swaminathan%20Commission%20Serving%20Farmers%20and%20Saving%20Farming.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/Third%20Report%20Swaminathan%20Commission%20Serving%20Farmers%20and%20Saving%20Farming.pdf">click here</a> to access<br />&nbsp;<br />Fourth Report Swaminathan Commission: Serving Farmers and Saving Farming- A Draft National Policy for Farmers, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/Fourth%20Report%20Swaminathan%20Commission%20Serving%20Farmers%20and%20Saving%20Farming.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/Fourth%20Report%20Swaminathan%20Commission%20Serving%20Farmers%20and%20Saving%20Farming.pdf">click here</a> to access<br />&nbsp;<br />Fifth Report Swaminathan Commission (Volume I): Serving Farmers and Saving Farming; Towards Faster and More Inclusive Growth of Farmers&rsquo; Welfare, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/Fifth%20Report%20Swaminathan%20Commission%20Volume%20I%20Serving%20Farmers%20and%20Saving%20Farming.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/Fifth%20Report%20Swaminathan%20Commission%20Volume%20I%20Serving%20Farmers%20and%20Saving%20Farming.pdf">click here</a> to access<br /><br />Fifth Report Swaminathan Commission (Volume II): Serving Farmers and Saving Farming: Towards Faster and More Inclusive Growth of Farmers&rsquo; Welfare, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/Fifth%20Report%20Swaminathan%20Commission%20Volume%20II%20Serving%20Farmers%20and%20Saving%20Farming.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/Fifth%20Report%20Swaminathan%20Commission%20Volume%20II%20Serving%20Farmers%20and%20Saving%20Farming.pdf">click here</a> to access<br /><br />Serving Farmers and Saving Farming; Jai Kisan: Revised Draft National Policy for Farmers, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/Jai%20Kisan%20Revised%20Draft%20National%20Policy%20for%20Farmers.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/Jai%20Kisan%20Revised%20Draft%20National%20Policy%20for%20Farmers.pdf">click here</a> to access<br />&nbsp;<br />2019 Bharatiya Janata Party Election Manifesto, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/BJP%20Election%20Manifesto%202019.pdf" title="BJP Election Manifesto 2019" title="https://im4change.in/siteadmin/tinymce/uploaded/BJP%20Election%20Manifesto%202019.pdf" title="BJP Election Manifesto 2019">click here</a> to access</div><p style="text-align:justify">&nbsp;</p><div style="text-align:justify"><br />MSP was not 1.5 times the cost of production for most <em>kharif </em>crops during the last 6 agricultural years, News alert by Inclusive Media for Change dated 11 January, 2019, please <a href="https://im4change.org/news-alerts/msp-was-not-1-5-times-the-cost-of-production-for-most-kharif-crops-during-the-last-6-agricultural-years-4686336.html" title="https://im4change.org/news-alerts/msp-was-not-1-5-times-the-cost-of-production-for-most-kharif-crops-during-the-last-6-agricultural-years-4686336.html">click here</a> to access&nbsp;<br />&nbsp;<br />An answer to rural distress -Ashok Gulati &amp; Shweta Saini, The Indian Express, 7 January, 2019, please <a href="https://im4change.org/latest-news-updates/an-answer-to-rural-distress-ashok-gulati-shweta-saini-4686308.html" title="https://im4change.org/latest-news-updates/an-answer-to-rural-distress-ashok-gulati-shweta-saini-4686308.html">click here</a> to access&nbsp;<br /><br />West Bengal: New schemes to provide Rs 2 lakh compensation for farmers&#39; deaths, says Mamata Banerjee, Scroll.in, 31 December, 2018, please <a href="https://im4change.org/latest-news-updates/west-bengal-new-schemes-to-provide-rs-2-lakh-compensation-for-farmers039-deaths-says-mamata-banerjee-4686275.html" title="https://im4change.org/latest-news-updates/west-bengal-new-schemes-to-provide-rs-2-lakh-compensation-for-farmers039-deaths-says-mamata-banerjee-4686275.html">click here</a> to access&nbsp;<br /><br />Going Beyond Loan Waivers, Odisha Announces Farm Scheme Worth Rs 10,000 Crore, TheWire.in, 22 December, 2018, please <a href="https://im4change.org/latest-news-updates/going-beyond-loan-waivers-odisha-announces-farm-scheme-worth-rs-10000-crore-4686210.html" title="https://im4change.org/latest-news-updates/going-beyond-loan-waivers-odisha-announces-farm-scheme-worth-rs-10000-crore-4686210.html">click here</a> to access&nbsp;<br /><br />Farmers&#39; Body Announces Nationwide Stir Against Modi Govt&#39;s MSP &#39;Betrayal&#39; -Neha Mehrotra, TheWire.in, 15 July, 2018, please <a href="https://im4change.org/latest-news-updates/farmers039-body-announces-nationwide-stir-against-modi-govt039s-msp-039betrayal039-neha-mehrotra-4685083.html" title="https://im4change.org/latest-news-updates/farmers039-body-announces-nationwide-stir-against-modi-govt039s-msp-039betrayal039-neha-mehrotra-4685083.html">click here</a> to access<br /><br />Minimum Support Price for rice gave return of 50% over cost 13 times since 1996-97 -Roshan Kishore, Hindustan Times, 6 July, 2018, please <a href="https://im4change.org/latest-news-updates/minimum-support-price-for-rice-gave-return-of-50-over-cost-13-times-since-1996-97-roshan-kishore-4685034.html" title="https://im4change.org/latest-news-updates/minimum-support-price-for-rice-gave-return-of-50-over-cost-13-times-since-1996-97-roshan-kishore-4685034.html">click here</a> to access<br /><br />Fact Check: Has the BJP Really Fulfilled Its MSP Promise as It Claims? -Kabir Agarwal, TheWire.in, 6 July, 2018, please <a href="https://im4change.org/latest-news-updates/fact-check-has-the-bjp-really-fulfilled-its-msp-promise-as-it-claims-kabir-agarwal-4685025.html" title="https://im4change.org/latest-news-updates/fact-check-has-the-bjp-really-fulfilled-its-msp-promise-as-it-claims-kabir-agarwal-4685025.html">click here</a> to access&nbsp;<br /><br />Modi Government&#39;s &#39;Historic&#39; MSP Hike Is Nothing More Than a Band-Aid for Farmers -Ishan Anand, TheWire.in, 5 July, 2018, please <a href="https://im4change.org/latest-news-updates/modi-government039s-039historic039-msp-hike-is-nothing-more-than-a-band-aid-for-farmers-ishan-anand-4685033.html" title="https://im4change.org/latest-news-updates/modi-government039s-039historic039-msp-hike-is-nothing-more-than-a-band-aid-for-farmers-ishan-anand-4685033.html">click here</a> to access&nbsp;<br /><br />New MSP: Govt fails to meet Swaminathan standards, yet again -Banjot Kaur, Down to Earth, 4 July, 2018, please <a href="https://im4change.org/latest-news-updates/new-msp-govt-fails-to-meet-swaminathan-standards-yet-again-banjot-kaur-4685029.html" title="https://im4change.org/latest-news-updates/new-msp-govt-fails-to-meet-swaminathan-standards-yet-again-banjot-kaur-4685029.html">click here</a> to access&nbsp;<br /><br />Budget 2018: Focus on MSP ideal for tackling farm distress -Ramesh Chand, The Economic Times, 31 January, 2018, please <a href="https://im4change.org/latest-news-updates/budget-2018-focus-on-msp-ideal-for-tackling-farm-distress-ramesh-chand-4683803.html" title="https://im4change.org/latest-news-updates/budget-2018-focus-on-msp-ideal-for-tackling-farm-distress-ramesh-chand-4683803.html">click here</a> to access&nbsp;<br /><br />The Cost+50% Swaminathan formula mirage -Harish Damodaran, 22 June, 2017, The Indian Express, please <a href="https://indianexpress.com/article/india/the-cost-plug-50-percent-swaminathan-formula-mirage-agriculture-sector-minimum-support-price-4715922/" title="https://indianexpress.com/article/india/the-cost-plug-50-percent-swaminathan-formula-mirage-agriculture-sector-minimum-support-price-4715922/">click here </a>to access&nbsp;<br /><br /><br /><strong>Image Courtesy: Himanshu Joshi</strong><br />&nbsp;</div>                                                           
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        NEWS ALERTS | A reality check indicates that MSP set for 2019-20's kharif crops is not 1.5 times the &#039;C2&#039; cost of production    </title>
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A recent press release by the Cabinet Committee on Economic Affairs (CCEA) shows that the declared minimum support price (MSP) for most kharif crops to be marketed in 2019-20 is at least 50 percent above the cost of production.

The official..."/>
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A recent press release by the Cabinet Committee on Economic Affairs (CCEA) shows that the declared minimum support price (MSP) for most kharif crops to be marketed in 2019-20 is at least 50 percent above the cost of production.

The official..." />
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                            <p style="text-align:justify">&nbsp;</p><div style="text-align:justify">A recent <a href="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129" title="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129">press release</a> by the Cabinet Committee on Economic Affairs (CCEA) shows that the declared minimum support price (MSP) for most <em>kharif </em>crops to be marketed in 2019-20 is at least 50 percent above the cost of production.<br /><br />The official information related to the newly declared MSP, which came two days ahead of the <a href="https://im4change.in/siteadmin/tinymce/uploaded/Budget%20Speech%20Union%20Budget%202019-20%20dated%205%20July%202019.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/Budget%20Speech%20Union%20Budget%202019-20%20dated%205%20July%202019.pdf">Union Budget presentation</a>, gives <a href="https://im4change.in/siteadmin/tinymce/uploaded/Press%20release%203%20July%202019_1.jpg" title="Press release 3 July 2019" title="https://im4change.in/siteadmin/tinymce/uploaded/Press%20release%203%20July%202019_1.jpg" title="Press release 3 July 2019">the impression</a> that the newly re-elected NDA government has kept its promise of offering remunerative prices to farmers <em>(as <a href="https://im4change.org/latest-news-updates/farmers039-body-announces-nationwide-stir-against-modi-govt039s-msp-039betrayal039-neha-mehrotra-4685083.html" title="https://im4change.org/latest-news-updates/farmers039-body-announces-nationwide-stir-against-modi-govt039s-msp-039betrayal039-neha-mehrotra-4685083.html">demanded by various farmers&#39; organisations</a> in the recent past)</em>, which are <a href="https://im4change.in/siteadmin/tinymce/uploaded/Press%20release%203%20July%202019_1.jpg" title="Press release 3 July 2019" title="https://im4change.in/siteadmin/tinymce/uploaded/Press%20release%203%20July%202019_1.jpg" title="Press release 3 July 2019">at least 1.5 times the cost of production</a>.<br /><br />However, that may not be the case if the comprehensive cost of production <em>(termed as &#39;C2&#39;)</em> is taken into account instead of &#39;A2+FL&#39; cost of production -- the one that has been used for calculations by the government. Please note that in a <a href="https://im4change.org/news-alerts/msp-was-not-1-5-times-the-cost-of-production-for-most-kharif-crops-during-the-last-6-agricultural-years-4686336.html" title="https://im4change.org/news-alerts/msp-was-not-1-5-times-the-cost-of-production-for-most-kharif-crops-during-the-last-6-agricultural-years-4686336.html">previous news alert</a> dated 11th January 2019, Inclusive Media for Change had discussed that the Commission for Agricultural Costs and Prices (CACP) uses two broad concepts viz. &lsquo;A2&rsquo; cost and &lsquo;C2&rsquo; cost <em>(also called comprehensive cost)</em>.<br /><br />According to NITI Aayog member <a href="/upload/files/Ramesh%20Chand.pdf" title="/upload/files/Ramesh%20Chand.pdf">Prof. Ramesh Chand</a>, &lsquo;A2&rsquo; cost of production includes all expenses paid by the farmers in cash or kind during crop production like seed, fertiliser, manure, chemicals, hired human, bullock and machine labour, irrigation expenses, maintenance cost, etc. It also includes the imputed cost of own seed, manure, bullock and machine labour, rent paid for leased-in land, depreciation of assets and interest on working capital. However, &#39;C2&#39; cost of production is equal to the sum of &#39;A2&#39; cost of production, imputed cost of farmers&rsquo; own family labour (FL), interest on fixed capital and rental value of own rent. Thus, the value of &#39;C2&#39; is greater than the value of &#39;A2+FL&#39;.<br /><br />In the <a href="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129" title="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129">press release dated 3rd July</a>, 2019, the government has used &#39;A2+FL&#39; cost of production in order to show that the minimum support price of the 14 <em>kharif</em> crops is 1.5 times of the cost of production. This could be confirmed on the basis of calculations done by the Inclusive Media for Change team. It may be noted that the above-said <a href="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129" title="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129">press release</a> did not mention anything about the particular type of cost of production, which has been used by the government.<br /><br />Table-1 reveals that the relative difference between MSP and projected &#39;A2+FL&#39; cost of production <em>(which is estimated by the CACP)</em> is 50 percent or higher for all the 14 <em>kharif</em> crops during 2019-20 <em>kharif</em> marketing season (KMS). In other words, for all the 14 <em>kharif</em> crops the declared MSP is at least 50 percent over the &#39;A2+FL&#39; cost of production. For example, in case of <em>bajra</em> the declared MSP for 2019-20 is higher than the &#39;A2+FL&#39; cost of production by 84.67 percent. Please check the <span style="background-color:#ffff00">yellow shaded</span> cells/ figures of table-1. &nbsp;<br /><br /><strong>Table 1: Relative difference between fixed MSP (including bonus) and &#39;A2+FL&#39; Cost of Production (projected) of <em>kharif</em> crops (in percent)</strong><br /><br /><img alt="Table 1 Relative difference between fixed MSP including bonus and A2+FL Cost of Production projected of kharif crops in percent" src="https://im4change.in/siteadmin/tinymce/uploaded/Table%201%20Relative%20difference%20between%20fixed%20MSP%20including%20bonus%20and%20A2+FL%20Cost%20of%20Production%20projected%20of%20kharif%20crops%20in%20percent_1.jpg" style="height:595px; width:626px" /><br /><br /><em><strong>Note: </strong>Calculated by Inclusive Media for Change based on the formula of relative difference between MSP and Cost of Production</em><br /><br /><em><strong>Source: </strong>Figures related to MSP are accessed from:<br /><br />(i) Press release: A Government that cares for its Farmers, Press Information Bureau, Government of India, Cabinet Committee on Economic Affairs (CCEA), 3 July, 2019, please <a href="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129" title="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129">click here</a> to access&nbsp;&nbsp;<br />(ii) Minimum Support Prices Recommended by CACP and Fixed by Government (Crop Year), Ministry of Agriculture &amp; Farmers&#39; Welfare, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20of%20various%20crops%20in%20different%20years.doc" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20of%20various%20crops%20in%20different%20years.doc">click here</a> to access&nbsp;<br />(iii) MSP for kharif crops 2018-19, Ministry of Agriculture &amp; Farmers&#39; Welfare, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf">click here</a> to access&nbsp;<br />(iv) MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf">click here</a> to access&nbsp;<br />(v) MSP Rabi Crops to be marketed in 2019-20, Ministry of Agriculture &amp; Farmers&#39; Welfare, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20Rabi%20Crops%20marketing%20season%202019-20.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20Rabi%20Crops%20marketing%20season%202019-20.pdf">click here</a> to access&nbsp;</em><br />&nbsp;<br /><em>Figures related to &lsquo;A2+FL&rsquo; Cost of Production of kharif crops are accessed from:<br /><br />(i) CACP Report on Price Policy for Kharif crops of 2019-20 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=669" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=669">click here</a> to access<br />(ii) CACP Report on Price Policy for Kharif crops of 2018-19 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=615" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=615">click here</a> to access&nbsp;&nbsp;<br />(iii) CACP Report on Price Policy for Kharif crops of 2017-18 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=598" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=598">click here</a> to access&nbsp;&nbsp;<br />(iv) CACP Report on Price Policy for Kharif crops of 2016-17 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=574" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=574">click here</a> to access&nbsp;<br />(v) CACP Report on Price Policy for Kharif crops of 2015-16 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=547" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=547">click here</a> to access&nbsp;&nbsp;<br />(vi) CACP Report on Price Policy for Kharif crops of 2014-15 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=534" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=534">click here</a> to access&nbsp;&nbsp;<br />(vii) CACP Report on Price Policy for Kharif crops of 2013-14 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=519" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=519">click here</a> to access</em>&nbsp;&nbsp;<br />---<br /><br />Please note that the relative difference can be calculated using the following formula:<br /><br /><strong>Relative difference between MSP and Cost of Production = [{(<a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20fixed%20for%20kharif%20crops%20in%202019-20.jpg" title="MSP fixed for kharif crops in 2019-20" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20fixed%20for%20kharif%20crops%20in%202019-20.jpg" title="MSP fixed for kharif crops in 2019-20">MSP fixed for a particular kharif crop</a> in Rs. per quintal during a season) minus (Projected Cost of Production in Rs. per quintal -- either <a href="https://im4change.in/siteadmin/tinymce/uploaded/A2%20plus%20FL%20cost%20of%20production.jpg" title="A2 plus FL cost of production" title="https://im4change.in/siteadmin/tinymce/uploaded/A2%20plus%20FL%20cost%20of%20production.jpg" title="A2 plus FL cost of production">&#39;A2+FL&#39;</a> or <a href="https://im4change.in/siteadmin/tinymce/uploaded/C2%20cost%20of%20production.jpg" title="C2 cost of production" title="https://im4change.in/siteadmin/tinymce/uploaded/C2%20cost%20of%20production.jpg" title="C2 cost of production">&#39;C2&#39;</a>)} divided by (Projected Cost of Production in Rs. per quintal -- either <a href="https://im4change.in/siteadmin/tinymce/uploaded/A2%20plus%20FL%20cost%20of%20production.jpg" title="A2 plus FL cost of production" title="https://im4change.in/siteadmin/tinymce/uploaded/A2%20plus%20FL%20cost%20of%20production.jpg" title="A2 plus FL cost of production">&#39;A2+FL&#39;</a> or <a href="https://im4change.in/siteadmin/tinymce/uploaded/C2%20cost%20of%20production.jpg" title="C2 cost of production" title="https://im4change.in/siteadmin/tinymce/uploaded/C2%20cost%20of%20production.jpg" title="C2 cost of production">&#39;C2&#39;</a>)}] multiplied by one hundred.</strong><br /><br />Table-2 shows that for none of the 14 <em>kharif</em> crops, the declared MSP <em>(for 2019-20 KMS)</em> is 1.5 times the &#39;C2&#39; cost of production. Please check the negative figures in the <span style="background-color:#ffff00">yellow shaded cells</span> of table-2.&nbsp;<br /><br /><strong>Table 2: Relative difference between fixed MSP (including bonus) and &#39;C2&#39; Cost of Production (projected) of <em>kharif </em>crops (in percent)</strong><br /><br /><img alt="Table 2 Relative difference between fixed MSP including bonus and C2 Cost of Production projected of kharif crops in percent" src="https://im4change.in/siteadmin/tinymce/uploaded/Table%202%20Relative%20difference%20between%20fixed%20MSP%20including%20bonus%20and%20C2%20Cost%20of%20Production%20projected%20of%20kharif%20crops%20in%20percent_1.jpg" style="height:598px; width:626px" /><br /><br /><em><strong>Note: </strong>Same as in table-1<br /><br /><strong>Source: </strong>Same as in table-1</em><br />---<br /><br />Kindly note that the <a href="https://im4change.in/siteadmin/tinymce/uploaded/BJP%20Election%20Manifesto%202019.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/BJP%20Election%20Manifesto%202019.pdf">2019 election manifesto</a> of the Bharatiya Janata Party (BJP) clearly says that <em>&quot;in order to ensure remunerative prices for farmers, the minimum support price for 22 crops was increased to 1.5 times cost of production&quot; </em>by the previous National Democratic Alliance (NDA) government. However, the <a href="https://im4change.org/news-alerts/msp-was-not-1-5-times-the-cost-of-production-for-most-kharif-crops-during-the-last-6-agricultural-years-4686336.html" title="https://im4change.org/news-alerts/msp-was-not-1-5-times-the-cost-of-production-for-most-kharif-crops-during-the-last-6-agricultural-years-4686336.html">news alert</a> by Inclusive Media for Change dated 11th January, 2019 had shown that our farmers did not get 1.5 times the &lsquo;C2&rsquo; cost of production for <em>kharif</em> crops in the years between 2013-14 and 2018-19. Please refer to table-2.<br /><br />Table-3 indicates that in the case of the 14 <em>kharif</em> crops, on average the &#39;C2&#39; cost of production was higher than the &#39;A2+FL&#39; cost of production by 32.41 percent between 2013-14 and 2019-20 KMS. For example, in the case of paddy, the relative difference between &#39;C2&#39; and &#39;A2+FL&#39; cost of production (projected) was 31.45 percent on an average between 2013-14 and 2019-20 KMS.<br /><br /><strong>Table 3: Relative difference between &#39;C2&#39; and &#39;A2+FL&#39; Cost of Production (projected) of <em>kharif </em>crops (in percent)</strong><br /><br /><img alt="Table 3 Relative difference between C2 and A2+FL Cost of Production projected of kharif crops in percent" src="https://im4change.in/siteadmin/tinymce/uploaded/Table%203%20Relative%20difference%20between%20C2%20and%20A2+FL%20Cost%20of%20Production%20projected%20of%20kharif%20crops%20in%20percent.jpg" style="height:378px; width:639px" /><br /><em><strong>Note:</strong> Similar to the formula used in table-1<br /><br /><strong>Source:</strong> Same as in table-1</em><br />---<br /><br />Please <a href="https://im4change.org/news-alerts/msp-was-not-1-5-times-the-cost-of-production-for-most-kharif-crops-during-the-last-6-agricultural-years-4686336.html" title="https://im4change.org/news-alerts/msp-was-not-1-5-times-the-cost-of-production-for-most-kharif-crops-during-the-last-6-agricultural-years-4686336.html">click here</a>&nbsp;to read the key recommendations of the National Commission on Farmers pertaining to MSP.<br /><br /><br /><em><strong>References</strong></em><br /><br />A Government that cares for its Farmers, Press Information Bureau, Government of India, Cabinet Committee on Economic Affairs (CCEA), 3 July, 2019, please <a href="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129" title="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129">click here</a> to access&nbsp;<br /><br />Minimum Support Prices Recommended by CACP and Fixed by Government (Crop Year), Ministry of Agriculture &amp; Farmers&#39; Welfare, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20of%20various%20crops%20in%20different%20years.doc" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20of%20various%20crops%20in%20different%20years.doc">click here</a> to access&nbsp;<br /><br />MSP for <em>kharif</em> crops 2018-19, Ministry of Agriculture &amp; Farmers&#39; Welfare, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf">click here</a> to access<br /><br />MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf">click here</a> to access<br />&nbsp;<br />CACP Report on Price Policy for <em>Kharif </em>crops of 2019-20 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=669" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=669">click here</a> to access<br />&nbsp;<br />CACP Report on Price Policy for <em>Kharif</em> crops of 2018-19 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=615" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=615">click here</a> to access<br />&nbsp;<br />CACP Report on Price Policy for <em>Kharif </em>crops of 2017-18 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=598" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=598">click here</a> to access<br />&nbsp;<br />CACP Report on Price Policy for <em>Kharif</em> crops of 2016-17 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=574" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=574">click here</a> to access&nbsp;<br /><br />CACP Report on Price Policy for <em>Kharif</em> crops of 2015-16 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=547" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=547">click here</a> to access&nbsp;<br /><br />CACP Report on Price Policy for <em>Kharif </em>crops of 2014-15 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=534" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=534">click here</a> to access<br /><br />CACP Report on Price Policy for <em>Kharif</em> crops of 2013-14 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=519" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=519">click here</a> to access<br /><br />&ldquo;Status of Farmers&rsquo; Income: Strategies for Accelerated Growth&rdquo;, Inter-linkages between Input Costs, Diversification, Capital Formation and Income, Report of the Committee on Doubling Farmers&rsquo; Income Volume II, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/DFI%20Volume%202.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/DFI%20Volume%202.pdf">click here</a> to access<br /><br />Reports by the National Commission on Farmers, PRS Legislative Research, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/PRS%20Swaminathan%20Commission.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/PRS%20Swaminathan%20Commission.pdf">click here</a> to access<br />&nbsp;<br />The Swaminathan Commission reports, please <a href="https://ruralindiaonline.org/articles/all-reports-by-the-swaminathan-commission" title="https://ruralindiaonline.org/articles/all-reports-by-the-swaminathan-commission">click here</a> to access&nbsp;<br /><br />First Report Swaminathan Commission: Serving Farmers and Saving Farming, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/First%20Report%20Swaminathan%20Commission%20Serving%20Farmers%20and%20Saving%20Farming.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/First%20Report%20Swaminathan%20Commission%20Serving%20Farmers%20and%20Saving%20Farming.pdf">click here</a> to access<br />&nbsp;<br />Second Report Swaminathan Commission: Serving Farmers and Saving Farming: From Crisis to Confidence, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/Second%20Report%20Swaminathan%20Commission%20Serving%20Farmers%20and%20Saving%20Farming.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/Second%20Report%20Swaminathan%20Commission%20Serving%20Farmers%20and%20Saving%20Farming.pdf">click here</a> to access<br />&nbsp;<br />Third Report Swaminathan Commission: Serving Farmers and Saving Farming; 2006- Year of Agricultural Renewal, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/Third%20Report%20Swaminathan%20Commission%20Serving%20Farmers%20and%20Saving%20Farming.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/Third%20Report%20Swaminathan%20Commission%20Serving%20Farmers%20and%20Saving%20Farming.pdf">click here</a> to access<br />&nbsp;<br />Fourth Report Swaminathan Commission: Serving Farmers and Saving Farming- A Draft National Policy for Farmers, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/Fourth%20Report%20Swaminathan%20Commission%20Serving%20Farmers%20and%20Saving%20Farming.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/Fourth%20Report%20Swaminathan%20Commission%20Serving%20Farmers%20and%20Saving%20Farming.pdf">click here</a> to access<br />&nbsp;<br />Fifth Report Swaminathan Commission (Volume I): Serving Farmers and Saving Farming; Towards Faster and More Inclusive Growth of Farmers&rsquo; Welfare, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/Fifth%20Report%20Swaminathan%20Commission%20Volume%20I%20Serving%20Farmers%20and%20Saving%20Farming.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/Fifth%20Report%20Swaminathan%20Commission%20Volume%20I%20Serving%20Farmers%20and%20Saving%20Farming.pdf">click here</a> to access<br /><br />Fifth Report Swaminathan Commission (Volume II): Serving Farmers and Saving Farming: Towards Faster and More Inclusive Growth of Farmers&rsquo; Welfare, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/Fifth%20Report%20Swaminathan%20Commission%20Volume%20II%20Serving%20Farmers%20and%20Saving%20Farming.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/Fifth%20Report%20Swaminathan%20Commission%20Volume%20II%20Serving%20Farmers%20and%20Saving%20Farming.pdf">click here</a> to access<br /><br />Serving Farmers and Saving Farming; Jai Kisan: Revised Draft National Policy for Farmers, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/Jai%20Kisan%20Revised%20Draft%20National%20Policy%20for%20Farmers.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/Jai%20Kisan%20Revised%20Draft%20National%20Policy%20for%20Farmers.pdf">click here</a> to access<br />&nbsp;<br />2019 Bharatiya Janata Party Election Manifesto, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/BJP%20Election%20Manifesto%202019.pdf" title="BJP Election Manifesto 2019" title="https://im4change.in/siteadmin/tinymce/uploaded/BJP%20Election%20Manifesto%202019.pdf" title="BJP Election Manifesto 2019">click here</a> to access</div><p style="text-align:justify">&nbsp;</p><div style="text-align:justify"><br />MSP was not 1.5 times the cost of production for most <em>kharif </em>crops during the last 6 agricultural years, News alert by Inclusive Media for Change dated 11 January, 2019, please <a href="https://im4change.org/news-alerts/msp-was-not-1-5-times-the-cost-of-production-for-most-kharif-crops-during-the-last-6-agricultural-years-4686336.html" title="https://im4change.org/news-alerts/msp-was-not-1-5-times-the-cost-of-production-for-most-kharif-crops-during-the-last-6-agricultural-years-4686336.html">click here</a> to access&nbsp;<br />&nbsp;<br />An answer to rural distress -Ashok Gulati &amp; Shweta Saini, The Indian Express, 7 January, 2019, please <a href="https://im4change.org/latest-news-updates/an-answer-to-rural-distress-ashok-gulati-shweta-saini-4686308.html" title="https://im4change.org/latest-news-updates/an-answer-to-rural-distress-ashok-gulati-shweta-saini-4686308.html">click here</a> to access&nbsp;<br /><br />West Bengal: New schemes to provide Rs 2 lakh compensation for farmers&#39; deaths, says Mamata Banerjee, Scroll.in, 31 December, 2018, please <a href="https://im4change.org/latest-news-updates/west-bengal-new-schemes-to-provide-rs-2-lakh-compensation-for-farmers039-deaths-says-mamata-banerjee-4686275.html" title="https://im4change.org/latest-news-updates/west-bengal-new-schemes-to-provide-rs-2-lakh-compensation-for-farmers039-deaths-says-mamata-banerjee-4686275.html">click here</a> to access&nbsp;<br /><br />Going Beyond Loan Waivers, Odisha Announces Farm Scheme Worth Rs 10,000 Crore, TheWire.in, 22 December, 2018, please <a href="https://im4change.org/latest-news-updates/going-beyond-loan-waivers-odisha-announces-farm-scheme-worth-rs-10000-crore-4686210.html" title="https://im4change.org/latest-news-updates/going-beyond-loan-waivers-odisha-announces-farm-scheme-worth-rs-10000-crore-4686210.html">click here</a> to access&nbsp;<br /><br />Farmers&#39; Body Announces Nationwide Stir Against Modi Govt&#39;s MSP &#39;Betrayal&#39; -Neha Mehrotra, TheWire.in, 15 July, 2018, please <a href="https://im4change.org/latest-news-updates/farmers039-body-announces-nationwide-stir-against-modi-govt039s-msp-039betrayal039-neha-mehrotra-4685083.html" title="https://im4change.org/latest-news-updates/farmers039-body-announces-nationwide-stir-against-modi-govt039s-msp-039betrayal039-neha-mehrotra-4685083.html">click here</a> to access<br /><br />Minimum Support Price for rice gave return of 50% over cost 13 times since 1996-97 -Roshan Kishore, Hindustan Times, 6 July, 2018, please <a href="https://im4change.org/latest-news-updates/minimum-support-price-for-rice-gave-return-of-50-over-cost-13-times-since-1996-97-roshan-kishore-4685034.html" title="https://im4change.org/latest-news-updates/minimum-support-price-for-rice-gave-return-of-50-over-cost-13-times-since-1996-97-roshan-kishore-4685034.html">click here</a> to access<br /><br />Fact Check: Has the BJP Really Fulfilled Its MSP Promise as It Claims? -Kabir Agarwal, TheWire.in, 6 July, 2018, please <a href="https://im4change.org/latest-news-updates/fact-check-has-the-bjp-really-fulfilled-its-msp-promise-as-it-claims-kabir-agarwal-4685025.html" title="https://im4change.org/latest-news-updates/fact-check-has-the-bjp-really-fulfilled-its-msp-promise-as-it-claims-kabir-agarwal-4685025.html">click here</a> to access&nbsp;<br /><br />Modi Government&#39;s &#39;Historic&#39; MSP Hike Is Nothing More Than a Band-Aid for Farmers -Ishan Anand, TheWire.in, 5 July, 2018, please <a href="https://im4change.org/latest-news-updates/modi-government039s-039historic039-msp-hike-is-nothing-more-than-a-band-aid-for-farmers-ishan-anand-4685033.html" title="https://im4change.org/latest-news-updates/modi-government039s-039historic039-msp-hike-is-nothing-more-than-a-band-aid-for-farmers-ishan-anand-4685033.html">click here</a> to access&nbsp;<br /><br />New MSP: Govt fails to meet Swaminathan standards, yet again -Banjot Kaur, Down to Earth, 4 July, 2018, please <a href="https://im4change.org/latest-news-updates/new-msp-govt-fails-to-meet-swaminathan-standards-yet-again-banjot-kaur-4685029.html" title="https://im4change.org/latest-news-updates/new-msp-govt-fails-to-meet-swaminathan-standards-yet-again-banjot-kaur-4685029.html">click here</a> to access&nbsp;<br /><br />Budget 2018: Focus on MSP ideal for tackling farm distress -Ramesh Chand, The Economic Times, 31 January, 2018, please <a href="https://im4change.org/latest-news-updates/budget-2018-focus-on-msp-ideal-for-tackling-farm-distress-ramesh-chand-4683803.html" title="https://im4change.org/latest-news-updates/budget-2018-focus-on-msp-ideal-for-tackling-farm-distress-ramesh-chand-4683803.html">click here</a> to access&nbsp;<br /><br />The Cost+50% Swaminathan formula mirage -Harish Damodaran, 22 June, 2017, The Indian Express, please <a href="https://indianexpress.com/article/india/the-cost-plug-50-percent-swaminathan-formula-mirage-agriculture-sector-minimum-support-price-4715922/" title="https://indianexpress.com/article/india/the-cost-plug-50-percent-swaminathan-formula-mirage-agriculture-sector-minimum-support-price-4715922/">click here </a>to access&nbsp;<br /><br /><br /><strong>Image Courtesy: Himanshu Joshi</strong><br />&nbsp;</div>                                                           
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A recent press release by the Cabinet Committee on Economic Affairs (CCEA) shows that the declared minimum support price (MSP) for most kharif crops to be marketed in 2019-20 is at least 50 percent above the cost of production.

The official..." />
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    <h1 class="cat-box-title">A reality check indicates that MSP set for 2019-20's kharif crops is not 1.5 times the &#039;C2&#039; cost of production</h1>
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                            <p style="text-align:justify">&nbsp;</p><div style="text-align:justify">A recent <a href="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129" title="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129">press release</a> by the Cabinet Committee on Economic Affairs (CCEA) shows that the declared minimum support price (MSP) for most <em>kharif </em>crops to be marketed in 2019-20 is at least 50 percent above the cost of production.<br /><br />The official information related to the newly declared MSP, which came two days ahead of the <a href="https://im4change.in/siteadmin/tinymce/uploaded/Budget%20Speech%20Union%20Budget%202019-20%20dated%205%20July%202019.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/Budget%20Speech%20Union%20Budget%202019-20%20dated%205%20July%202019.pdf">Union Budget presentation</a>, gives <a href="https://im4change.in/siteadmin/tinymce/uploaded/Press%20release%203%20July%202019_1.jpg" title="Press release 3 July 2019" title="https://im4change.in/siteadmin/tinymce/uploaded/Press%20release%203%20July%202019_1.jpg" title="Press release 3 July 2019">the impression</a> that the newly re-elected NDA government has kept its promise of offering remunerative prices to farmers <em>(as <a href="https://im4change.org/latest-news-updates/farmers039-body-announces-nationwide-stir-against-modi-govt039s-msp-039betrayal039-neha-mehrotra-4685083.html" title="https://im4change.org/latest-news-updates/farmers039-body-announces-nationwide-stir-against-modi-govt039s-msp-039betrayal039-neha-mehrotra-4685083.html">demanded by various farmers&#39; organisations</a> in the recent past)</em>, which are <a href="https://im4change.in/siteadmin/tinymce/uploaded/Press%20release%203%20July%202019_1.jpg" title="Press release 3 July 2019" title="https://im4change.in/siteadmin/tinymce/uploaded/Press%20release%203%20July%202019_1.jpg" title="Press release 3 July 2019">at least 1.5 times the cost of production</a>.<br /><br />However, that may not be the case if the comprehensive cost of production <em>(termed as &#39;C2&#39;)</em> is taken into account instead of &#39;A2+FL&#39; cost of production -- the one that has been used for calculations by the government. Please note that in a <a href="https://im4change.org/news-alerts/msp-was-not-1-5-times-the-cost-of-production-for-most-kharif-crops-during-the-last-6-agricultural-years-4686336.html" title="https://im4change.org/news-alerts/msp-was-not-1-5-times-the-cost-of-production-for-most-kharif-crops-during-the-last-6-agricultural-years-4686336.html">previous news alert</a> dated 11th January 2019, Inclusive Media for Change had discussed that the Commission for Agricultural Costs and Prices (CACP) uses two broad concepts viz. &lsquo;A2&rsquo; cost and &lsquo;C2&rsquo; cost <em>(also called comprehensive cost)</em>.<br /><br />According to NITI Aayog member <a href="/upload/files/Ramesh%20Chand.pdf" title="/upload/files/Ramesh%20Chand.pdf">Prof. Ramesh Chand</a>, &lsquo;A2&rsquo; cost of production includes all expenses paid by the farmers in cash or kind during crop production like seed, fertiliser, manure, chemicals, hired human, bullock and machine labour, irrigation expenses, maintenance cost, etc. It also includes the imputed cost of own seed, manure, bullock and machine labour, rent paid for leased-in land, depreciation of assets and interest on working capital. However, &#39;C2&#39; cost of production is equal to the sum of &#39;A2&#39; cost of production, imputed cost of farmers&rsquo; own family labour (FL), interest on fixed capital and rental value of own rent. Thus, the value of &#39;C2&#39; is greater than the value of &#39;A2+FL&#39;.<br /><br />In the <a href="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129" title="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129">press release dated 3rd July</a>, 2019, the government has used &#39;A2+FL&#39; cost of production in order to show that the minimum support price of the 14 <em>kharif</em> crops is 1.5 times of the cost of production. This could be confirmed on the basis of calculations done by the Inclusive Media for Change team. It may be noted that the above-said <a href="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129" title="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129">press release</a> did not mention anything about the particular type of cost of production, which has been used by the government.<br /><br />Table-1 reveals that the relative difference between MSP and projected &#39;A2+FL&#39; cost of production <em>(which is estimated by the CACP)</em> is 50 percent or higher for all the 14 <em>kharif</em> crops during 2019-20 <em>kharif</em> marketing season (KMS). In other words, for all the 14 <em>kharif</em> crops the declared MSP is at least 50 percent over the &#39;A2+FL&#39; cost of production. For example, in case of <em>bajra</em> the declared MSP for 2019-20 is higher than the &#39;A2+FL&#39; cost of production by 84.67 percent. Please check the <span style="background-color:#ffff00">yellow shaded</span> cells/ figures of table-1. &nbsp;<br /><br /><strong>Table 1: Relative difference between fixed MSP (including bonus) and &#39;A2+FL&#39; Cost of Production (projected) of <em>kharif</em> crops (in percent)</strong><br /><br /><img alt="Table 1 Relative difference between fixed MSP including bonus and A2+FL Cost of Production projected of kharif crops in percent" src="https://im4change.in/siteadmin/tinymce/uploaded/Table%201%20Relative%20difference%20between%20fixed%20MSP%20including%20bonus%20and%20A2+FL%20Cost%20of%20Production%20projected%20of%20kharif%20crops%20in%20percent_1.jpg" style="height:595px; width:626px" /><br /><br /><em><strong>Note: </strong>Calculated by Inclusive Media for Change based on the formula of relative difference between MSP and Cost of Production</em><br /><br /><em><strong>Source: </strong>Figures related to MSP are accessed from:<br /><br />(i) Press release: A Government that cares for its Farmers, Press Information Bureau, Government of India, Cabinet Committee on Economic Affairs (CCEA), 3 July, 2019, please <a href="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129" title="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129">click here</a> to access&nbsp;&nbsp;<br />(ii) Minimum Support Prices Recommended by CACP and Fixed by Government (Crop Year), Ministry of Agriculture &amp; Farmers&#39; Welfare, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20of%20various%20crops%20in%20different%20years.doc" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20of%20various%20crops%20in%20different%20years.doc">click here</a> to access&nbsp;<br />(iii) MSP for kharif crops 2018-19, Ministry of Agriculture &amp; Farmers&#39; Welfare, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf">click here</a> to access&nbsp;<br />(iv) MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf">click here</a> to access&nbsp;<br />(v) MSP Rabi Crops to be marketed in 2019-20, Ministry of Agriculture &amp; Farmers&#39; Welfare, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20Rabi%20Crops%20marketing%20season%202019-20.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20Rabi%20Crops%20marketing%20season%202019-20.pdf">click here</a> to access&nbsp;</em><br />&nbsp;<br /><em>Figures related to &lsquo;A2+FL&rsquo; Cost of Production of kharif crops are accessed from:<br /><br />(i) CACP Report on Price Policy for Kharif crops of 2019-20 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=669" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=669">click here</a> to access<br />(ii) CACP Report on Price Policy for Kharif crops of 2018-19 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=615" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=615">click here</a> to access&nbsp;&nbsp;<br />(iii) CACP Report on Price Policy for Kharif crops of 2017-18 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=598" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=598">click here</a> to access&nbsp;&nbsp;<br />(iv) CACP Report on Price Policy for Kharif crops of 2016-17 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=574" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=574">click here</a> to access&nbsp;<br />(v) CACP Report on Price Policy for Kharif crops of 2015-16 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=547" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=547">click here</a> to access&nbsp;&nbsp;<br />(vi) CACP Report on Price Policy for Kharif crops of 2014-15 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=534" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=534">click here</a> to access&nbsp;&nbsp;<br />(vii) CACP Report on Price Policy for Kharif crops of 2013-14 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=519" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=519">click here</a> to access</em>&nbsp;&nbsp;<br />---<br /><br />Please note that the relative difference can be calculated using the following formula:<br /><br /><strong>Relative difference between MSP and Cost of Production = [{(<a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20fixed%20for%20kharif%20crops%20in%202019-20.jpg" title="MSP fixed for kharif crops in 2019-20" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20fixed%20for%20kharif%20crops%20in%202019-20.jpg" title="MSP fixed for kharif crops in 2019-20">MSP fixed for a particular kharif crop</a> in Rs. per quintal during a season) minus (Projected Cost of Production in Rs. per quintal -- either <a href="https://im4change.in/siteadmin/tinymce/uploaded/A2%20plus%20FL%20cost%20of%20production.jpg" title="A2 plus FL cost of production" title="https://im4change.in/siteadmin/tinymce/uploaded/A2%20plus%20FL%20cost%20of%20production.jpg" title="A2 plus FL cost of production">&#39;A2+FL&#39;</a> or <a href="https://im4change.in/siteadmin/tinymce/uploaded/C2%20cost%20of%20production.jpg" title="C2 cost of production" title="https://im4change.in/siteadmin/tinymce/uploaded/C2%20cost%20of%20production.jpg" title="C2 cost of production">&#39;C2&#39;</a>)} divided by (Projected Cost of Production in Rs. per quintal -- either <a href="https://im4change.in/siteadmin/tinymce/uploaded/A2%20plus%20FL%20cost%20of%20production.jpg" title="A2 plus FL cost of production" title="https://im4change.in/siteadmin/tinymce/uploaded/A2%20plus%20FL%20cost%20of%20production.jpg" title="A2 plus FL cost of production">&#39;A2+FL&#39;</a> or <a href="https://im4change.in/siteadmin/tinymce/uploaded/C2%20cost%20of%20production.jpg" title="C2 cost of production" title="https://im4change.in/siteadmin/tinymce/uploaded/C2%20cost%20of%20production.jpg" title="C2 cost of production">&#39;C2&#39;</a>)}] multiplied by one hundred.</strong><br /><br />Table-2 shows that for none of the 14 <em>kharif</em> crops, the declared MSP <em>(for 2019-20 KMS)</em> is 1.5 times the &#39;C2&#39; cost of production. Please check the negative figures in the <span style="background-color:#ffff00">yellow shaded cells</span> of table-2.&nbsp;<br /><br /><strong>Table 2: Relative difference between fixed MSP (including bonus) and &#39;C2&#39; Cost of Production (projected) of <em>kharif </em>crops (in percent)</strong><br /><br /><img alt="Table 2 Relative difference between fixed MSP including bonus and C2 Cost of Production projected of kharif crops in percent" src="https://im4change.in/siteadmin/tinymce/uploaded/Table%202%20Relative%20difference%20between%20fixed%20MSP%20including%20bonus%20and%20C2%20Cost%20of%20Production%20projected%20of%20kharif%20crops%20in%20percent_1.jpg" style="height:598px; width:626px" /><br /><br /><em><strong>Note: </strong>Same as in table-1<br /><br /><strong>Source: </strong>Same as in table-1</em><br />---<br /><br />Kindly note that the <a href="https://im4change.in/siteadmin/tinymce/uploaded/BJP%20Election%20Manifesto%202019.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/BJP%20Election%20Manifesto%202019.pdf">2019 election manifesto</a> of the Bharatiya Janata Party (BJP) clearly says that <em>&quot;in order to ensure remunerative prices for farmers, the minimum support price for 22 crops was increased to 1.5 times cost of production&quot; </em>by the previous National Democratic Alliance (NDA) government. However, the <a href="https://im4change.org/news-alerts/msp-was-not-1-5-times-the-cost-of-production-for-most-kharif-crops-during-the-last-6-agricultural-years-4686336.html" title="https://im4change.org/news-alerts/msp-was-not-1-5-times-the-cost-of-production-for-most-kharif-crops-during-the-last-6-agricultural-years-4686336.html">news alert</a> by Inclusive Media for Change dated 11th January, 2019 had shown that our farmers did not get 1.5 times the &lsquo;C2&rsquo; cost of production for <em>kharif</em> crops in the years between 2013-14 and 2018-19. Please refer to table-2.<br /><br />Table-3 indicates that in the case of the 14 <em>kharif</em> crops, on average the &#39;C2&#39; cost of production was higher than the &#39;A2+FL&#39; cost of production by 32.41 percent between 2013-14 and 2019-20 KMS. For example, in the case of paddy, the relative difference between &#39;C2&#39; and &#39;A2+FL&#39; cost of production (projected) was 31.45 percent on an average between 2013-14 and 2019-20 KMS.<br /><br /><strong>Table 3: Relative difference between &#39;C2&#39; and &#39;A2+FL&#39; Cost of Production (projected) of <em>kharif </em>crops (in percent)</strong><br /><br /><img alt="Table 3 Relative difference between C2 and A2+FL Cost of Production projected of kharif crops in percent" src="https://im4change.in/siteadmin/tinymce/uploaded/Table%203%20Relative%20difference%20between%20C2%20and%20A2+FL%20Cost%20of%20Production%20projected%20of%20kharif%20crops%20in%20percent.jpg" style="height:378px; width:639px" /><br /><em><strong>Note:</strong> Similar to the formula used in table-1<br /><br /><strong>Source:</strong> Same as in table-1</em><br />---<br /><br />Please <a href="https://im4change.org/news-alerts/msp-was-not-1-5-times-the-cost-of-production-for-most-kharif-crops-during-the-last-6-agricultural-years-4686336.html" title="https://im4change.org/news-alerts/msp-was-not-1-5-times-the-cost-of-production-for-most-kharif-crops-during-the-last-6-agricultural-years-4686336.html">click here</a>&nbsp;to read the key recommendations of the National Commission on Farmers pertaining to MSP.<br /><br /><br /><em><strong>References</strong></em><br /><br />A Government that cares for its Farmers, Press Information Bureau, Government of India, Cabinet Committee on Economic Affairs (CCEA), 3 July, 2019, please <a href="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129" title="http://pib.nic.in/newsite/PrintRelease.aspx?relid=191129">click here</a> to access&nbsp;<br /><br />Minimum Support Prices Recommended by CACP and Fixed by Government (Crop Year), Ministry of Agriculture &amp; Farmers&#39; Welfare, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20of%20various%20crops%20in%20different%20years.doc" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20of%20various%20crops%20in%20different%20years.doc">click here</a> to access&nbsp;<br /><br />MSP for <em>kharif</em> crops 2018-19, Ministry of Agriculture &amp; Farmers&#39; Welfare, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf">click here</a> to access<br /><br />MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf">click here</a> to access<br />&nbsp;<br />CACP Report on Price Policy for <em>Kharif </em>crops of 2019-20 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=669" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=669">click here</a> to access<br />&nbsp;<br />CACP Report on Price Policy for <em>Kharif</em> crops of 2018-19 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=615" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=615">click here</a> to access<br />&nbsp;<br />CACP Report on Price Policy for <em>Kharif </em>crops of 2017-18 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=598" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=598">click here</a> to access<br />&nbsp;<br />CACP Report on Price Policy for <em>Kharif</em> crops of 2016-17 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=574" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=574">click here</a> to access&nbsp;<br /><br />CACP Report on Price Policy for <em>Kharif</em> crops of 2015-16 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=547" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=547">click here</a> to access&nbsp;<br /><br />CACP Report on Price Policy for <em>Kharif </em>crops of 2014-15 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=534" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=534">click here</a> to access<br /><br />CACP Report on Price Policy for <em>Kharif</em> crops of 2013-14 season, please <a href="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=519" title="https://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=519">click here</a> to access<br /><br />&ldquo;Status of Farmers&rsquo; Income: Strategies for Accelerated Growth&rdquo;, Inter-linkages between Input Costs, Diversification, Capital Formation and Income, Report of the Committee on Doubling Farmers&rsquo; Income Volume II, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/DFI%20Volume%202.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/DFI%20Volume%202.pdf">click here</a> to access<br /><br />Reports by the National Commission on Farmers, PRS Legislative Research, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/PRS%20Swaminathan%20Commission.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/PRS%20Swaminathan%20Commission.pdf">click here</a> to access<br />&nbsp;<br />The Swaminathan Commission reports, please <a href="https://ruralindiaonline.org/articles/all-reports-by-the-swaminathan-commission" title="https://ruralindiaonline.org/articles/all-reports-by-the-swaminathan-commission">click here</a> to access&nbsp;<br /><br />First Report Swaminathan Commission: Serving Farmers and Saving Farming, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/First%20Report%20Swaminathan%20Commission%20Serving%20Farmers%20and%20Saving%20Farming.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/First%20Report%20Swaminathan%20Commission%20Serving%20Farmers%20and%20Saving%20Farming.pdf">click here</a> to access<br />&nbsp;<br />Second Report Swaminathan Commission: Serving Farmers and Saving Farming: From Crisis to Confidence, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/Second%20Report%20Swaminathan%20Commission%20Serving%20Farmers%20and%20Saving%20Farming.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/Second%20Report%20Swaminathan%20Commission%20Serving%20Farmers%20and%20Saving%20Farming.pdf">click here</a> to access<br />&nbsp;<br />Third Report Swaminathan Commission: Serving Farmers and Saving Farming; 2006- Year of Agricultural Renewal, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/Third%20Report%20Swaminathan%20Commission%20Serving%20Farmers%20and%20Saving%20Farming.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/Third%20Report%20Swaminathan%20Commission%20Serving%20Farmers%20and%20Saving%20Farming.pdf">click here</a> to access<br />&nbsp;<br />Fourth Report Swaminathan Commission: Serving Farmers and Saving Farming- A Draft National Policy for Farmers, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/Fourth%20Report%20Swaminathan%20Commission%20Serving%20Farmers%20and%20Saving%20Farming.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/Fourth%20Report%20Swaminathan%20Commission%20Serving%20Farmers%20and%20Saving%20Farming.pdf">click here</a> to access<br />&nbsp;<br />Fifth Report Swaminathan Commission (Volume I): Serving Farmers and Saving Farming; Towards Faster and More Inclusive Growth of Farmers&rsquo; Welfare, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/Fifth%20Report%20Swaminathan%20Commission%20Volume%20I%20Serving%20Farmers%20and%20Saving%20Farming.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/Fifth%20Report%20Swaminathan%20Commission%20Volume%20I%20Serving%20Farmers%20and%20Saving%20Farming.pdf">click here</a> to access<br /><br />Fifth Report Swaminathan Commission (Volume II): Serving Farmers and Saving Farming: Towards Faster and More Inclusive Growth of Farmers&rsquo; Welfare, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/Fifth%20Report%20Swaminathan%20Commission%20Volume%20II%20Serving%20Farmers%20and%20Saving%20Farming.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/Fifth%20Report%20Swaminathan%20Commission%20Volume%20II%20Serving%20Farmers%20and%20Saving%20Farming.pdf">click here</a> to access<br /><br />Serving Farmers and Saving Farming; Jai Kisan: Revised Draft National Policy for Farmers, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/Jai%20Kisan%20Revised%20Draft%20National%20Policy%20for%20Farmers.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/Jai%20Kisan%20Revised%20Draft%20National%20Policy%20for%20Farmers.pdf">click here</a> to access<br />&nbsp;<br />2019 Bharatiya Janata Party Election Manifesto, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/BJP%20Election%20Manifesto%202019.pdf" title="BJP Election Manifesto 2019" title="https://im4change.in/siteadmin/tinymce/uploaded/BJP%20Election%20Manifesto%202019.pdf" title="BJP Election Manifesto 2019">click here</a> to access</div><p style="text-align:justify">&nbsp;</p><div style="text-align:justify"><br />MSP was not 1.5 times the cost of production for most <em>kharif </em>crops during the last 6 agricultural years, News alert by Inclusive Media for Change dated 11 January, 2019, please <a href="https://im4change.org/news-alerts/msp-was-not-1-5-times-the-cost-of-production-for-most-kharif-crops-during-the-last-6-agricultural-years-4686336.html" title="https://im4change.org/news-alerts/msp-was-not-1-5-times-the-cost-of-production-for-most-kharif-crops-during-the-last-6-agricultural-years-4686336.html">click here</a> to access&nbsp;<br />&nbsp;<br />An answer to rural distress -Ashok Gulati &amp; Shweta Saini, The Indian Express, 7 January, 2019, please <a href="https://im4change.org/latest-news-updates/an-answer-to-rural-distress-ashok-gulati-shweta-saini-4686308.html" title="https://im4change.org/latest-news-updates/an-answer-to-rural-distress-ashok-gulati-shweta-saini-4686308.html">click here</a> to access&nbsp;<br /><br />West Bengal: New schemes to provide Rs 2 lakh compensation for farmers&#39; deaths, says Mamata Banerjee, Scroll.in, 31 December, 2018, please <a href="https://im4change.org/latest-news-updates/west-bengal-new-schemes-to-provide-rs-2-lakh-compensation-for-farmers039-deaths-says-mamata-banerjee-4686275.html" title="https://im4change.org/latest-news-updates/west-bengal-new-schemes-to-provide-rs-2-lakh-compensation-for-farmers039-deaths-says-mamata-banerjee-4686275.html">click here</a> to access&nbsp;<br /><br />Going Beyond Loan Waivers, Odisha Announces Farm Scheme Worth Rs 10,000 Crore, TheWire.in, 22 December, 2018, please <a href="https://im4change.org/latest-news-updates/going-beyond-loan-waivers-odisha-announces-farm-scheme-worth-rs-10000-crore-4686210.html" title="https://im4change.org/latest-news-updates/going-beyond-loan-waivers-odisha-announces-farm-scheme-worth-rs-10000-crore-4686210.html">click here</a> to access&nbsp;<br /><br />Farmers&#39; Body Announces Nationwide Stir Against Modi Govt&#39;s MSP &#39;Betrayal&#39; -Neha Mehrotra, TheWire.in, 15 July, 2018, please <a href="https://im4change.org/latest-news-updates/farmers039-body-announces-nationwide-stir-against-modi-govt039s-msp-039betrayal039-neha-mehrotra-4685083.html" title="https://im4change.org/latest-news-updates/farmers039-body-announces-nationwide-stir-against-modi-govt039s-msp-039betrayal039-neha-mehrotra-4685083.html">click here</a> to access<br /><br />Minimum Support Price for rice gave return of 50% over cost 13 times since 1996-97 -Roshan Kishore, Hindustan Times, 6 July, 2018, please <a href="https://im4change.org/latest-news-updates/minimum-support-price-for-rice-gave-return-of-50-over-cost-13-times-since-1996-97-roshan-kishore-4685034.html" title="https://im4change.org/latest-news-updates/minimum-support-price-for-rice-gave-return-of-50-over-cost-13-times-since-1996-97-roshan-kishore-4685034.html">click here</a> to access<br /><br />Fact Check: Has the BJP Really Fulfilled Its MSP Promise as It Claims? -Kabir Agarwal, TheWire.in, 6 July, 2018, please <a href="https://im4change.org/latest-news-updates/fact-check-has-the-bjp-really-fulfilled-its-msp-promise-as-it-claims-kabir-agarwal-4685025.html" title="https://im4change.org/latest-news-updates/fact-check-has-the-bjp-really-fulfilled-its-msp-promise-as-it-claims-kabir-agarwal-4685025.html">click here</a> to access&nbsp;<br /><br />Modi Government&#39;s &#39;Historic&#39; MSP Hike Is Nothing More Than a Band-Aid for Farmers -Ishan Anand, TheWire.in, 5 July, 2018, please <a href="https://im4change.org/latest-news-updates/modi-government039s-039historic039-msp-hike-is-nothing-more-than-a-band-aid-for-farmers-ishan-anand-4685033.html" title="https://im4change.org/latest-news-updates/modi-government039s-039historic039-msp-hike-is-nothing-more-than-a-band-aid-for-farmers-ishan-anand-4685033.html">click here</a> to access&nbsp;<br /><br />New MSP: Govt fails to meet Swaminathan standards, yet again -Banjot Kaur, Down to Earth, 4 July, 2018, please <a href="https://im4change.org/latest-news-updates/new-msp-govt-fails-to-meet-swaminathan-standards-yet-again-banjot-kaur-4685029.html" title="https://im4change.org/latest-news-updates/new-msp-govt-fails-to-meet-swaminathan-standards-yet-again-banjot-kaur-4685029.html">click here</a> to access&nbsp;<br /><br />Budget 2018: Focus on MSP ideal for tackling farm distress -Ramesh Chand, The Economic Times, 31 January, 2018, please <a href="https://im4change.org/latest-news-updates/budget-2018-focus-on-msp-ideal-for-tackling-farm-distress-ramesh-chand-4683803.html" title="https://im4change.org/latest-news-updates/budget-2018-focus-on-msp-ideal-for-tackling-farm-distress-ramesh-chand-4683803.html">click here</a> to access&nbsp;<br /><br />The Cost+50% Swaminathan formula mirage -Harish Damodaran, 22 June, 2017, The Indian Express, please <a href="https://indianexpress.com/article/india/the-cost-plug-50-percent-swaminathan-formula-mirage-agriculture-sector-minimum-support-price-4715922/" title="https://indianexpress.com/article/india/the-cost-plug-50-percent-swaminathan-formula-mirage-agriculture-sector-minimum-support-price-4715922/">click here </a>to access&nbsp;<br /><br /><br /><strong>Image Courtesy: Himanshu Joshi</strong><br />&nbsp;</div>                                                           
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A reality check indicates that MSP set for 2019-20's kharif crops is not 1.5 times the 'C2' cost of production

Published on Jul 29, 2019   Modified on Jan 22, 2022

A recent press release by the Cabinet Committee on Economic Affairs (CCEA) shows that the declared minimum support price (MSP) for most kharif crops to be marketed in 2019-20 is at least 50 percent above the cost of production. The official information related to the newly declared MSP, which came two days ahead of the Union Budget presentation, gives the impression that the newly re-elected NDA government has kept its promise of offering remunerative prices to farmers (as demanded by various farmers' organisations in the recent past), which are at least 1.5 times the cost of production. However, that may not be the case if the comprehensive cost of production (termed as 'C2') is taken into account instead of 'A2+FL' cost of production -- the one that has been used for calculations by the government. Please note that in a previous news alert dated 11th January 2019, Inclusive Media for Change had discussed that the Commission for Agricultural Costs and Prices (CACP) uses two broad concepts viz. ‘A2’ cost and ‘C2’ cost (also called comprehensive cost). According to NITI Aayog member Prof. Ramesh Chand, ‘A2’ cost of production includes all expenses paid by the farmers in cash or kind during crop production like seed, fertiliser, manure, chemicals, hired human, bullock and machine labour, irrigation expenses, maintenance cost, etc. It also includes the imputed cost of own seed, manure, bullock and machine labour, rent paid for leased-in land, depreciation of assets and interest on working capital. However, 'C2' cost of production is equal to the sum of 'A2' cost of production, imputed cost of farmers’ own family labour (FL), interest on fixed capital and rental value of own rent. Thus, the value of 'C2' is greater than the value of 'A2+FL'. In the press release dated 3rd July, 2019, the government has used 'A2+FL' cost of production in order to show that the minimum support price of the 14 kharif crops is 1.5 times of the cost of production. This could be confirmed on the basis of calculations done by the Inclusive Media for Change team. It may be noted that the above-said press release did not mention anything about the particular type of cost of production, which has been used by the government. Table-1 reveals that the relative difference between MSP and projected 'A2+FL' cost of production (which is estimated by the CACP) is 50 percent or higher for all the 14 kharif crops during 2019-20 kharif marketing season (KMS). In other words, for all the 14 kharif crops the declared MSP is at least 50 percent over the 'A2+FL' cost of production. For example, in case of bajra the declared MSP for 2019-20 is higher than the 'A2+FL' cost of production by 84.67 percent. Please check the yellow shaded cells/ figures of table-1.   Table 1: Relative difference between fixed MSP (including bonus) and 'A2+FL' Cost of Production (projected) of kharif crops (in percent) Note: Calculated by Inclusive Media for Change based on the formula of relative difference between MSP and Cost of Production Source: Figures related to MSP are accessed from: (i) Press release: A Government that cares for its Farmers, Press Information Bureau, Government of India, Cabinet Committee on Economic Affairs (CCEA), 3 July, 2019, please click here to access   (ii) Minimum Support Prices Recommended by CACP and Fixed by Government (Crop Year), Ministry of Agriculture & Farmers' Welfare, please click here to access  (iii) MSP for kharif crops 2018-19, Ministry of Agriculture & Farmers' Welfare, please click here to access  (iv) MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please click here to access  (v) MSP Rabi Crops to be marketed in 2019-20, Ministry of Agriculture & Farmers' Welfare, please click here to access    Figures related to ‘A2+FL’ Cost of Production of kharif crops are accessed from: (i) CACP Report on Price Policy for Kharif crops of 2019-20 season, please click here to access (ii) CACP Report on Price Policy for Kharif crops of 2018-19 season, please click here to access   (iii) CACP Report on Price Policy for Kharif crops of 2017-18 season, please click here to access   (iv) CACP Report on Price Policy for Kharif crops of 2016-17 season, please click here to access  (v) CACP Report on Price Policy for Kharif crops of 2015-16 season, please click here to access   (vi) CACP Report on Price Policy for Kharif crops of 2014-15 season, please click here to access   (vii) CACP Report on Price Policy for Kharif crops of 2013-14 season, please click here to access   --- Please note that the relative difference can be calculated using the following formula: Relative difference between MSP and Cost of Production = [{(MSP fixed for a particular kharif crop in Rs. per quintal during a season) minus (Projected Cost of Production in Rs. per quintal -- either 'A2+FL' or 'C2')} divided by (Projected Cost of Production in Rs. per quintal -- either 'A2+FL' or 'C2')}] multiplied by one hundred. Table-2 shows that for none of the 14 kharif crops, the declared MSP (for 2019-20 KMS) is 1.5 times the 'C2' cost of production. Please check the negative figures in the yellow shaded cells of table-2.  Table 2: Relative difference between fixed MSP (including bonus) and 'C2' Cost of Production (projected) of kharif crops (in percent) Note: Same as in table-1 Source: Same as in table-1 --- Kindly note that the 2019 election manifesto of the Bharatiya Janata Party (BJP) clearly says that "in order to ensure remunerative prices for farmers, the minimum support price for 22 crops was increased to 1.5 times cost of production" by the previous National Democratic Alliance (NDA) government. However, the news alert by Inclusive Media for Change dated 11th January, 2019 had shown that our farmers did not get 1.5 times the ‘C2’ cost of production for kharif crops in the years between 2013-14 and 2018-19. Please refer to table-2. Table-3 indicates that in the case of the 14 kharif crops, on average the 'C2' cost of production was higher than the 'A2+FL' cost of production by 32.41 percent between 2013-14 and 2019-20 KMS. For example, in the case of paddy, the relative difference between 'C2' and 'A2+FL' cost of production (projected) was 31.45 percent on an average between 2013-14 and 2019-20 KMS. Table 3: Relative difference between 'C2' and 'A2+FL' Cost of Production (projected) of kharif crops (in percent) Note: Similar to the formula used in table-1 Source: Same as in table-1 --- Please click here to read the key recommendations of the National Commission on Farmers pertaining to MSP. References A Government that cares for its Farmers, Press Information Bureau, Government of India, Cabinet Committee on Economic Affairs (CCEA), 3 July, 2019, please click here to access  Minimum Support Prices Recommended by CACP and Fixed by Government (Crop Year), Ministry of Agriculture & Farmers' Welfare, please click here to access  MSP for kharif crops 2018-19, Ministry of Agriculture & Farmers' Welfare, please click here to access MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please click here to access   CACP Report on Price Policy for Kharif crops of 2019-20 season, please click here to access   CACP Report on Price Policy for Kharif crops of 2018-19 season, please click here to access   CACP Report on Price Policy for Kharif crops of 2017-18 season, please click here to access   CACP Report on Price Policy for Kharif crops of 2016-17 season, please click here to access  CACP Report on Price Policy for Kharif crops of 2015-16 season, please click here to access  CACP Report on Price Policy for Kharif crops of 2014-15 season, please click here to access CACP Report on Price Policy for Kharif crops of 2013-14 season, please click here to access “Status of Farmers’ Income: Strategies for Accelerated Growth”, Inter-linkages between Input Costs, Diversification, Capital Formation and Income, Report of the Committee on Doubling Farmers’ Income Volume II, please click here to access Reports by the National Commission on Farmers, PRS Legislative Research, please click here to access   The Swaminathan Commission reports, please click here to access  First Report Swaminathan Commission: Serving Farmers and Saving Farming, please click here to access   Second Report Swaminathan Commission: Serving Farmers and Saving Farming: From Crisis to Confidence, please click here to access   Third Report Swaminathan Commission: Serving Farmers and Saving Farming; 2006- Year of Agricultural Renewal, please click here to access   Fourth Report Swaminathan Commission: Serving Farmers and Saving Farming- A Draft National Policy for Farmers, please click here to access   Fifth Report Swaminathan Commission (Volume I): Serving Farmers and Saving Farming; Towards Faster and More Inclusive Growth of Farmers’ Welfare, please click here to access Fifth Report Swaminathan Commission (Volume II): Serving Farmers and Saving Farming: Towards Faster and More Inclusive Growth of Farmers’ Welfare, please click here to access Serving Farmers and Saving Farming; Jai Kisan: Revised Draft National Policy for Farmers, please click here to access   2019 Bharatiya Janata Party Election Manifesto, please click here to access   MSP was not 1.5 times the cost of production for most kharif crops during the last 6 agricultural years, News alert by Inclusive Media for Change dated 11 January, 2019, please click here to access    An answer to rural distress -Ashok Gulati & Shweta Saini, The Indian Express, 7 January, 2019, please click here to access  West Bengal: New schemes to provide Rs 2 lakh compensation for farmers' deaths, says Mamata Banerjee, Scroll.in, 31 December, 2018, please click here to access  Going Beyond Loan Waivers, Odisha Announces Farm Scheme Worth Rs 10,000 Crore, TheWire.in, 22 December, 2018, please click here to access  Farmers' Body Announces Nationwide Stir Against Modi Govt's MSP 'Betrayal' -Neha Mehrotra, TheWire.in, 15 July, 2018, please click here to access Minimum Support Price for rice gave return of 50% over cost 13 times since 1996-97 -Roshan Kishore, Hindustan Times, 6 July, 2018, please click here to access Fact Check: Has the BJP Really Fulfilled Its MSP Promise as It Claims? -Kabir Agarwal, TheWire.in, 6 July, 2018, please click here to access  Modi Government's 'Historic' MSP Hike Is Nothing More Than a Band-Aid for Farmers -Ishan Anand, TheWire.in, 5 July, 2018, please click here to access  New MSP: Govt fails to meet Swaminathan standards, yet again -Banjot Kaur, Down to Earth, 4 July, 2018, please click here to access  Budget 2018: Focus on MSP ideal for tackling farm distress -Ramesh Chand, The Economic Times, 31 January, 2018, please click here to access  The Cost+50% Swaminathan formula mirage -Harish Damodaran, 22 June, 2017, The Indian Express, please click here to access  Image Courtesy: Himanshu Joshi

Tagged with: A2+FL comprehensive cost of production Cost of Agricultural Production Cost of Cultivation farming minimum support price Minimum Support Prices Remunerative Prices

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