Guaranteed crop prices to take all costs into account, says Narendra Modi

Modi said the budget had taken a "big decision" to ensure that farmers get a fair price for their produce

Prime Minister Narendra Modi said on Sunday a planned increase in guaranteed price for farm goods will be based on the comprehensive cost of production including land rentals and unpaid-for labour by family members of a farmer.

The government, which sets a minimum support price (MSP) for nearly two dozen farm commodities, said in its budget last month that MSP will be set at least one and a half times the cost of production.

The announcement marks a major shift in the government’s approach after it had kept increases in the average minimum support price to low single