Prime Minister Dr Manmohan Singh on Tuesday assured Deepender Singh Hooda, Congress MP from Rohtak, that his request for revamping the methodology of commission for agricultural costs and prices (CACP) in calculating the MSP to factor in nutrient-based subsidy (NBS) and mid-season hike in prices of decontrolled fertilisers would be considered.
An official release said that the assurance was given to Hooda when he called on the Prime Minister in New Delhi.
The Rohtak MP requested Dr Manmohan Singh to introduce a new minimum support price (MSP) regime which took into account the dynamic changes in MSP mid-season also, on account of corresponding increases in prices of fertilisers.
This, Hooda told the Prime Minister, would link the MSP with factor cost of fertiliser and help insulate farmers from any incremental price rise that happens after announcement of the standard pre-sowing MSP.
Describing it as a pertinent issue directly affecting the farmers, Hooda said that the MSP regime was expected to make Indian agriculture a remunerative proposition and help the farmer choose his crop based on the announced MSP before the commencement of the sowing season.
The present system under which the CACP recommended MSP based on pre-sowing cost/input calculations, was relevant so long as the fertiliser prices were controlled and remained steady during a particular season.
After being decontrolled, the DAP and MOP prices could increase anytime, even in mid-season, which could cause an increase in the cost of production after MSP had been announced, he said.