- It talks about giving 50% additional amount along with C2 in determining MSP.
- It was recommended by the Swaminathan Commission.
- Three types of production costs are estimated by the Commission for Agricultural Costs and Prices (CACP).
- A2 includes the farmer's cost of the crop; Such as seeds, fertilizers, pesticides, labour, fuel etc.
- A2+FL includes the value of work done by family members on the farm along with A2.
- C2 includes A2+FL along with rent of own land and interest payable on immovable property etc.
- Presently A2+FL formula is used to determine MSP.
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