Demand of farmers' organizations to fix MSP of crops on C2 basis

28-Jun-2024 05:16 PM

New Delhi. Farmers' organizations recently met the Commission for Agricultural Costs and Costs (CACP) in New Delhi and stressed the need to change the basis of determining the minimum support price of agricultural crops.

The organizations said that at present, MSP is determined on the basis of A2 + FL cost, whereas instead of this,

MSP should be fixed 50 percent higher than the consolidated cost of production (C2). At present, there is a practice of fixing support price 50 percent higher than A2 + FL cost of production,

which does not include many expenses. In this system, all payable expenses, whether in cash or in any other form, are considered included and at the same time the value of the non-paid labor of the family is also included. On the other hand,

in consolidated or comprehensive expense (C2), all payable expenses are considered to be included, the imputed value of non-paid labor of the family, rental and interest paid on owned land and fixed capital. In a meeting with CACP, All India Kisan Sabha had said that the Commission should issue a white paper.

It believed that less than 10 percent of farmers get the benefit of MSP while there is no guaranteed purchase system in the entire country.

In some states, limited purchase of some crops is done at MSP but farmers of other states are deprived of it. Farmers' organizations also suggested setting up a price stabilization fund by taking contributions from big companies.

The government focuses on the purchase of paddy and wheat especially at MSP and purchase of pulses and oilseeds is done in limited quantity while the purchase of coarse grains is not given special importance. Two MSPs are not determined for crops like Basmati paddy, peas, moth, linseed and castor.