Budget 2018: FM Jaitley reiterates BJP's poll promise of MSP at 50% of cost

Funds created for aquaculture, farm marketing; farmer produce organisations get a tax boost

Presenting the last full Budget of the Narendra Modi-led government, Finance Minister Arun Jaitley on Thursday reiterated the BJP’s poll promise of providing minimum support prices (MSPs) equal to 50 per cent more than the production cost, but did not specify which cost of production would be used for calculating the MSP.

Jaitley also announced creation of separate dedicated funds for aquaculture and animal husbandry totaling around ~100 billion, but details revealed much of these would be routed through NABARD as has been the case in earlier Budgets, perhaps reflecting the strained financial position.

The MSPs set by the government have been