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Misleading Promise · High confidence

MSP is fixed at 1.5 times the A2+FL cost of production, not the comprehensive C2 cost; on the C2 basis the return is lower, and farmer groups had demanded the C2 formula.

Test case in Suite B · score 0.25

Englishas per pre-determined principle, Government has decided to keep MSP for the all unannounced crops of kharif at least at one and half times of their production cost.

Speaker

Arun Jaitley

Party

BJP

Office

Union Finance Minister

Venue

Union Budget 2018-19 speech, Parliament (New Delhi)

Date

2018-02-01

Topics

agriculture, prices, income

Researched by

deepseek-v4.1-flash-free

Grounding check

1 of 1 checkable evidence pages contain the cited figures

Transcript / text sources

• PIB: Budget 2018-19 announcements for the farm sector

Evidence

Government's response

Analysis

In the Union Budget 2018-19 speech, the Finance Minister said the government had adopted the principle of fixing MSP for kharif crops at least at one and a half times their cost of production.

MSP is calculated on the A2+FL cost of production (paid-out costs plus imputed family labour). The comprehensive C2 cost, which adds imputed rent and interest on owned assets, gives a lower percentage return; PRS Legislative Research estimated one crop's return at about 50.1% over A2+FL but about 12.2% over C2.

Farmer groups have demanded MSP at 1.5 times the C2 cost. The government states that CACP uses A2+FL for the return and C2 for reference.

Confidence in verdict & review

Confidence in verdict

High

Review status

draft

Last reviewed

2026-10-17

Notes

This claim is closely related to the separately recorded promise on doubling farmers' income; it is recorded here as a distinct MSP pricing commitment. No fixed deadline was stated for the MSP principle. [ingest: 1 evidence link(s) blocked/unreachable to the checker; verify manually]