Farming Community Dissatisfied with MSP Hike for Rabi Crops

New Delhi: A farmers' organization has termed the Minimum Support Price (MSP) announced by the Central Government for the 2026-27 Rabi season crops as inadequate and an insult to farmers, refusing to accept it. The organization points out that the MSP for wheat has been raised by a mere ₹25 per quintal (25 paise per kilogram), yet the government claims this rate is 106 percent higher than the cost of production. This claim is akin to rubbing salt into the wounds of food grain producers.

The organization has urged farmers and rural youth to protest against the government's order. According to the organization, the official calculation of MSP is based on 1.5 times the input costs, defined as 'A2+FL'. This formula accounts for expenses incurred by farmers on seeds, fertilizers, pesticides, and irrigation (A2), as well as the value of family labor (FL); however, it excludes the rental value of the farmer's own land and the interest on their capital investment.

The organization advocates for the use of the comprehensive 'C2 cost' metric in determining MSP. It notes that data from the Commission for Agricultural Costs and Prices (CACP) indicates farmers are receiving a margin of only 43 percent over production costs, rather than the claimed 106 percent.