Mohan Kanda suggests ‘MSP should cover cost of production at least’

Mohan Kanda committee which looked into the crop holiday crisis in AP apart from other things suggested that government should ensure that MSP announced by Govt. of India should cover the cost of production and if there is a gap, state government should bear the gap. According state govt reports it costs Rs. 1270/q for common varieites and Rs. 1335/q for A grade. Accordingly AP govt asked the Centre to fix MSP at Rs. 1905/q and Rs. 2033/q respectively. But the centre has announced the MSPs only as Rs. 1030 and Rs. 1080/q respectively. If state accepts the Mohan Kanda’s recommomendations, even if they dont pay the price they recommended, at least should cover the cost of production. In which case the prices would be Rs. 1270/q for common varieites and Rs. 1335/q for A grade. This would require about Rs. 55,000 cr additionally as the govt may have to give about Rs. 275/q as bonus. Still it would only cover the costs and wont leave any profit for the farmers. Is it not the time to rethink the whole pricing policy in agriculture? why farmers should be put to loss?

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