Lies being spread on MSP for farmers: PM

New Delhi: Prime Minister Narendra Modi made an indirect attack on the Opposition parties on Saturday, saying that confusion is being spread about the Budget decision to fix MSP for crops at least 1.5 times the production cost and assured farmers that all major costs incurred will be included while declaring the support price. The Centre is already working with state governments to ensure that farmers get the benefit of the declared Minimum Support Price (MSP), he said.

Addressing the three-day Krishi Unnati Mela here, Modi also appealed to farmers not to burn crop residues so as to curb pollution. Besides, he asked farmers to grow more oilseeds to reduce dependence on import of cooking oil as also to cut urea consumption by at least half by 2022. In the Union Budget for fiscal 2018-19, the government took a decision to ensure right prices to farmers for their produce, he said.

It has decided that for all notified crops, MSP will be at least one and a half times the cost, Modi said. Many people are "spreading confusion and creating atmosphere of despair" regarding the government's MSP decision, he said while sharing the detail of components to be considered while determining the cost of production for fixing the support price.

"The cost of production will include elements such as hired labour, expenses on their own or rented machinery as well as livestock, cost of seeds and fertilisers, expenses on irrigation, revenue being given to state government, interest on working capital, and rent of leased land among others," he said. It will also include labour put by farmers and their family, he said. "This is an important decision related to income of hardworking farmers."