economics hard Fill in the Blank

The Swaminathan Commission recommended that the Minimum Support Price (MSP) should be at least 50% more than the ___ cost of production to ensure fair remuneration for farmers.

  1. C2 (or Comprehensive)
  2. India Debt Resolution Company Ltd (IDRCL)
  3. 1999
  4. Countercyclical

Answer: C2 (or Comprehensive)

The C2 cost is the most comprehensive measure of production costs, including imputed rent on owned land and interest on owned capital assets, in addition to actual paid-out costs (A2) and family labor (FL). While the government currently uses the A2+FL formula for MSP, the Swaminathan Commission advocated for the C2+50% formula to ensure true economic viability for farmers.

Topic Indian Economy - Agriculture
Exam Relevance UPSC Prelims, SSC CGL
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