An SBI report on Monday said estimates of Rs 80,000 crore for implementation the proposed MSP scheme are exaggerated and emphasised that income compensation is better than waiving loans of farmers. In the report headlined, 'Fears Regarding the MSP Scheme Are Exaggerated', the SBI Ecowrap report said there is a market perception that implementation of market compensation scheme may cost the government as much as Rs 80,000 crore, "but our estimates suggest it may be less than one fourth of this figure". It further said there would be no harm if the government closely monitors the registration of the farmers under the scheme. "It is important to at least move ahead with an income compensation scheme rather than perpetually promote a loan waiver culture for the farmers," said the SBI's research report. At present, the government decides the MSP based on the recommendation of an expert body the Commission for Agricultural Costs and Prices (CACP).

Source: dna February 12, 2018 12:45 UTC