C2+ 50% formula

  • 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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