Constraints in hiking MSP

♤ Some of the government officials are of the opinion that it is impractical to give 50 per cent margin over cost C2 in all crops.

o The estimated cost of C2 components is about 35-40 per cent higher than cost A2+FL. This would require a significant rise in MSPs. For example paddy MSP might go up by 46 per cent.

o Calculating the MSPs based on cost of input components ignores the demand side of crops which might compromise the demand-supply principle for determining the cost.