Rabi MSP sends wrong signals -Nilanjan Ghosh

-The Hindu Business Line

Millets such as ragi deserve higher support prices as they are important for nutrition and water efficiency 

The CACP recommendations on Minimum Support Prices (MSP) for the mandated six Rabi crops — wheat, barley, gram, lentil, rapeseed and mustard, and safflower — are arrived by considering several factors.

These include the cost of production, supply and demand situation of various crops in domestic and global markets, domestic and world prices along with trade opportunities, terms of trade between agriculture and non-agriculture sector, optimal utilisation of land, water and other production resources, likely effect of price policy on rest of the economy, and a minimum of 50 per cent mark-up over the cost of production.

Though on the surface the list looks comprehensive, there are two missing concerns given the present day challenges, necessitating a change in the MSP formula.

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