The Odisha Government said the Commission on Agricultural Costs and Prices (CACP) ignored its suggestion of taking C2 as basis of recommending minimum support price for paddy for kharif season 2023-24, for which MSP of paddy was much below than the State’s suggested price.
The CACP’s MSP recommendations appeared to be based on A2+FL method of estimation for arriving MSP whereas State wanted C2 to be basis of MSP recommendation, says Odisha’s Agriculture and Farmer Empower Department in its opinion on Cabinet Committee on Economic Affairs’ note on price policy of kharif crops marketing season 2023-24.
The C2 cost refers to comprehensive cost of cultivation which is arrived by taking paid out costs, value of family labour, interest on the value of owned capital assets, rent paid for leased-in land and the rental value of owned land. On the contrary, A2+FL formula is sum of paid out cost and value of family labour. The State Government considers C2 cost to be a better indicator of cost of production.
