1.5 times formula for crops MSP
The 1.5 times formula is used to determine the minimum support price for crops. This was introduced during the Union Budget 2018-19. According to this formula, the MSP is fixed at 1.5 times the production cost for crops as a ‘pre-determined principle’. Under this formula, the Commission for Agricultural Costs & Prices (the commission that determines the MSP) only has to determine the production cost for a season and apply the formula.