Pawar says kharif crops' MSP hike not commensurate with cost of production

Seeking to puncture the NDA government's claim of fixing MSP at least 1.5 times of production cost, former agriculture minister Sharad Pawar today said the cultivation cost taken by the Centre while calculating support price is lower than what was suggested by even BJP-ruled Maharashtra government.

For instance, the Centre has taken into account the production cost of cotton at Rs 3,433 per quintal while fixing its MSP at Rs 5,150 for medium staple and Rs 5,450 for large staple for the 2018-19 crop year (July-June).

"It (Centre) claims that it has given maximum benefit of 50 per cent profit over the cost of production. ...You compare the Government of India's current decision and the recommendation (on cost of cultivation of crops) made by the Devendra Fadnavis government for 2017-18, you will realise what is the truth," Pawar told PTI.

The NCP supremo further said that the MSP increase announced by the central government is lower than what was recommended by the Maharasthra government for 2017-18.

The Centre takes a final view while fixing MSP after taking into account the cost of production of agri-crops suggested by every state government. Even the Maharashtra government had submitted its report, he added.