Minister had proposed to increase the MSP to one-and-a-half times the cost of production for the kharif crop in the budget. Jaitley was speaking in the Rajya Sabha on Friday.

The formula
In fact, the Opposition and Agriculture expert had asked the government to give a cost-proof formula. Jaitley said in the Rajya Sabha that the government will adopt a formula of A2 + FL (actual cost and cost of labor of farmer's family) while deciding on MSP.
Jaitley said that the farmers will be able to calculate 50% returns by calculating factories such as seed, fertilizer cost, input value of family labor. MSP will be decided on this basis only.

New benchmark to be made for farmers
The government is now giving MSPs on 23 items, although under the Food Security Act, ration shops are provided only on rice and wheat subsidies.
He said, "We will follow this as a principle and it will come out as a new benchmark for the future set of rules and for farmers."

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