The minimum support price (MSP) for agricultural crops will be at least 1.5 times the production cost so as to boost farmers' income and the Centre is working with states to ensure that peasants get the benefit of the support price, Prime Minister Narendra Modi said on Saturday.
It has decided that for all notified crops, MSP will be at least one-and-a- half times the cost, Mr. Modi said.
Prime Minister Narendra Modi on Saturday said his government is taking all necessary steps to help farmers achieve higher milestones and ensure that welfare measures for farmers like insurance coverage are also augmented.
The PM indicated that the input cost will take into account expenses on hired and family labour, machinery, livestock, seeds, fertiliser, irrigation and power costs, land revenue, interest on working capital, etc.
The Prime Minister's comments came in the context of continuous farmers' protests since June past year.
Appreciating the farmers' spirit and hardwork, Modi underlined that at present there was record production of food grains, pulses, fruits, vegetables and milk in the country, but new challenges have come up in agriculture which reduce the farmers' income and increase their losses. The government's plan, it seems, is to use a cost slightly higher than the so-called A2+FL, but not as high as C2, which includes more elements. "The PM tried to explain in detail".
"Reforming agriculture markets is a focus area and the government is trying to connect farmers from local to global markets", Mr Modi said. He said that in the recent Union Budget, Grameen Retail Agriculture Markets have been envisaged.
"The government is working day and night to ensure that farmers get latest seeds and electricity, do not face any problem in market access and get right prices for their produce", Modi said. He said farmer Producer Organizations, would be given relief on income tax, on the lines of cooperative societies.
He inaugurated the Jaivik Kheti (organic farming) portal and laid the foundation stone of 25 KVKs (Krishi Vigyan Kendras).