This estimation is usually done based on three types of calculation methods. These are A2 method, A2+FL method and C2 method.
Ever wondered how MSP for crops is calculated ?
Below is an attempt to present a simplified view, followed by some pertinent questions (just to have better understanding, not taking sides)&
This estimation is usually done based on three types of calculation methods. These are A2 method, A2+FL method and C2 method.
With such varied geography, which requires different inputs, labour, methods... and hence different costs of growing same crop, how do you define a single MSP for a crop across nation ?