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MSP to include cost of family labour: NITI Aayog official

The labour cost, both captive of the family members of the farmers and those of paid labour, will also be included while determining the cost of production

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NITI Ayog has offered the three options to states to procure agricultural products at Minimum Support Price (MSP), a top official said here on Sunday. The labour cost, both captive of the family members of the farmers and those of paid labour, will also be included while determining the cost of production.

Accordingly, the government can directly buy from the farmers at MSP, involve private traders to make them buy at MSP or let farmers sell the crop at market price and the government will compensate them for the shortfall with respect to the MSP, informed Rajiv Kumar, vice-chairman of NITI Aayog in Gandhinagar on Sunday after meeting top bureaucrats in the state government. He said that rather than having a uniform policy across the country, NITI Aayog is now consulting states and giving them options and not forcing its policies on them.

The central government had announced in the union budget last month that MSP will be 50% higher than the production cost. He said the labour cost will be included while determining the production cost. "The cost of family labour will also be included. If it is a paid labour, then obviously, it will be a part of the determination of production cost," Kumar told DNA.

JN Singh, chief secretary of Gujarat said that discussions are going on to choose a suitable option, but it would be based on the needs and the situation.

Local farmers leader say that the option of traders buying at MSP is not feasible as traders always prefer to buy at the lowest price prevailing in the market. "Madhya Pradesh had initiated the third option, which is more feasible. In case of government directly buying from the farmers, there would constraints in storing and transporting the crops," said Sagar Rabari, general secretary of Gujarat Khedut Samaj. He also advocated an initiative by Telangana government where the government gives a fixed cash assistance based on the landholding ahead of the cropping season and farmer is free to choose the crop and market it accordingly.

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