State urges Centre to replaceMSP with 'profitable price' | punjab | Hindustan Times
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State urges Centre to replaceMSP with 'profitable price'

The Haryana government on Tuesday urged the Central government to replace the minimum support price (MSP) with 'profitable price' in consonance with the report of the Swaminathan Commission which recommended that farmers be given 50% profit over and above the cost of production of the crop.

punjab Updated: Jan 13, 2015 21:51 IST
HT Correspondent

The Haryana government on Tuesday urged the Central government to replace the minimum support price (MSP) with 'profitable price' in consonance with the report of the Swaminathan Commission which recommended that farmers be given 50% profit over and above the cost of production of the crop.


State agriculture minister OP Dhankar said that after the approval of chief minister ML Khattar, the state government had sent a written communication to the Commission for Agricultural Costs and Prices stating that the MSP for the farmers tended to become the "maximum support price", which failed to serve the basic purpose of providing adequate profit to the farmers and without ensuring a minimum lucrative and profitable price to the farmers, required growth level in agriculture in proportion to other sectors of economy, could not be achieved.

He said that however, if due to constraints of resources, it was not feasible to give the increase of 50% at one go, the central government might give 20% increase in the average cost of production of crops in last two years plus 10% profit in the first instance.

He said that for paddy crop, the recommended MSP with the 20% increase in the average cost of production of crops in last two years and 10% increase on the cost was `2193.10 whereas the cost of production per quintal including 20% increase of last two years' average cost of production was `1993.72.

Similarly, the recommended MSP for the cost of Bajra was `1557.48 and that of maize `2041.57 whereas the cost of production per quintal including 20% increase of last two years' average cost of production was `1415.89 and `1853.25 respectively.

Likewise, the recommended MSP with 20% increase and 10% increase on the cost of cotton crop was `5367.78 whereas the cost of production per quintal including 20% increase of last two years' average cost of production was `4879.80.