Samyukt Kisan Morcha Urges Government to Release White Paper on Minimum Support Prices and Procurement Issues

The Samyukt Kisan Morcha (SKM) has called on the government to release a detailed report on the minimum support prices (MSP) for crops and the procurement process. They claim that nearly 90% of crops are not being purchased at government-set rates. SKM accused Union Agriculture Minister Shivaraj Singh Chauhan of misleading the public and demanded clarity on MSP calculations through a white paper.

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The MSP is the lowest price at which the government buys certain crops from farmers. The Commission for Agricultural Costs & Prices (CACP), part of the Union Agricultural Ministry, recommends MSPs for specific crops. The A2+FL+50% formula considers costs incurred by farmers, including family labour, and adds 50% to determine MSP. In contrast, the C2+50% formula includes comprehensive costs like land rental value and interest on fixed capital.

MSP Discrepancies and Farmer Losses

SKM highlighted that for paddy, the current MSP of Rs 2,300 per quintal is 30% lower than the C2+50% calculation, which should be Rs 3,012 per quintal. This results in a loss of Rs 712 per quintal for farmers. With an average paddy productivity of 2,390 kg per hectare, a farmer with one hectare loses Rs 17,016 per crop cycle, leading to financial strain and debt.

The NDA-3 government has not accepted the C2+50% recommendation from Dr. MS Swaminathan's National Farmers Commission. SKM pointed out significant discrepancies in MSPs for other crops as well. For instance, Jowar has a difference of Rs 1,066 per quintal between the two formulas.

Other Crop Discrepancies

For Bajra, the difference is Rs 279 per quintal; Maize sees a gap of Rs 570 per quintal; Ragi has a discrepancy of Rs 908 per quintal. Arhar shows a significant difference of Rs 2,206 per quintal, while Moong is off by Rs 2,274 per quintal. Groundnut and Soyabean have differences of Rs 1,713 and Rs 1,555 per quintal respectively.

Sunflower's MSP discrepancy is Rs 2,611 per quintal; Sesamum is short by Rs 2,961 per quintal; Nigerseed by Rs 2,296 per quintal; Cotton's difference is around Rs 2,224 per quintal. SKM noted that these gaps highlight the financial challenges faced by farmers due to inadequate MSPs.

Government Claims and Farmer Realities

During a virtual meeting on January 4th, 2025 with state agricultural ministers, it was claimed that arrangements exist to purchase wheat and rice at MSP. However, SKM argues this is incorrect as less than 10% of crops are currently procured at these rates. Farmers are forced to sell most produce below the A2+FL+50% MSP set by CACP.

The Parliamentary Standing Committee on Agriculture recently suggested implementing a legally binding MSP but did not endorse the C2+50% formula. SKM stated this proposal doesn't meet farmers' needs. The committee also recommended debt waivers for farmers and farm labourers due to rising debts and suicides linked to farm distress.

A National Commission for Minimum Living Wages for Farm Labourers was also proposed to ensure fair wages. SKM believes these measures are crucial for addressing long-standing issues faced by farm workers across India.