Farmers’ Organisations Demand Legal Guarantee for MSP at C2+50%, Push for Statutory Status for CACP

New Delhi: All India Kisan Sabha (AIKS) and other farmers' organisations have strongly urged the Commission for Agricultural Costs and Prices (CACP) to recommend a legal guarantee for minimum support price (MSP) at the cost of production plus 50% (C2+50%) immediately. They also called for the transformation of the CACP into a statutory body to ensure transparency and stronger enforcement of MSP policies.

The demand was reiterated at a recent meeting on the price policy for the Rabi crops 2025-26 marketing season, presided over by CACP Chairman Prof. Vijay Paul Sharma, held at the Dr. Ambedkar International Centre in New Delhi. AIKS representatives highlighted the urgent need for a white paper from CACP that clarifies the difference between the current MSP calculation criteria — A2+FL versus C2+50% — and discloses the actual volume of procurement and the number of farmers benefiting under government schemes.

The farmers’ representatives voiced concerns that the current MSP, based on A2+FL, conceals the real losses farmers endure. For example, the MSP for paddy fixed for the Kharif season is reportedly Rs 766 per quintal lower than it would be under the promised C2+50% criterion. This has resulted in a loss of Rs 19,000 to Rs 22,000 per acre for typical farmers, which dwarfs the Rs 6,000 annual financial support given under the Prime Minister Samman Nidhi scheme.

Despite the BJP’s 2014 election promise to implement MSP at C2+50%, the Modi government has failed to do so even after 11 years in power. Moreover, less than 10% of farmers reportedly benefit from the MSP due to the absence of a comprehensive procurement system nationwide.

Chairman Prof. Sharma also expressed alarm at the stagnation and decline in wheat production over the past two years, pointing to the excessive use of fertilizers and pesticides as key factors harming soil fertility and driving up production costs. AIKS stressed the constitutional responsibility of state governments to lead agricultural reforms, particularly in promoting scientific farming, regulating input use, and reducing costs.

AIKS leaders P Krishnaprasad, finance secretary, and Nidheesh Villatt, CKC member, represented the organisation at the meeting.