After dithering for good 4 years, the Centre on Thursday proposed to raise the minimum support price (MSP) of agricultural commodities to 1.5 times of the production cost.

Presenting the National Democratic Alliance (NDA) Government’s last full budget in Parliament, Finance Minister Arun Jaitley said the Government was committed to raise the MSP for majority of rabi crops to at least one-and-a-half times the cost involved. The same formula would be applicable to kharif crops as well, he said.

Similarly, if the prices of agriculture produce market is less than MSP, the government should purchase either at MSP or work in a manner to provide MSP for the farmers through some other mechanism, Jaitley said.

A mechanism would be put in place by Niti Ayog in consultation with Central and State governments

Niti Ayog, in consultation with the Central and State Governments, will put in place a fool-proof mechanism to ensure farmers get adequate price for their produce, the Finance Minister said.

Jaitley also proposed the setting up of 22,000 rural haats to help small and marginal farmers who often do not have access APMCs and wholesale markets.

He also promised to create an institutional mechanism, with the participation of all concerned ministries, to develop appropriate policies and practices for price and demand forecast, use of futures and options market, expansion of warehouse depository system and to take decisions about specific exports and imports related measures.

comment COMMENT NOW