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HomeIndiaPaddy farmers facing severe losses due to denial of MSP as per...

Paddy farmers facing severe losses due to denial of MSP as per Swaminathan formula: SKM

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New Delhi, Aug 6 (PTI) An average five-acre paddy farmer in India suffers a net loss of around Rs 1.50 lakh every season due to non-implementation of minimum support price as per recommendation of the M S Swaminathan panel, the Samyukt Kisan Morcha (SKM) said on Thursday.

In a statement issued here, the SKM called upon paddy farmers to join its August 10 protests, and reminded that minimum support price (MSP) as per the Swaminathan commission formula was among the BJP’s poll promises in 2014.

It claimed that in 2026-27, the estimated cumulative loss incurred by paddy farmers is around Rs 3.07 lakh crore due to non-implementation of the Swaminathan commission’s MSP formula.

“SKM calls upon paddy farmers across India to join the August 10 mass protest of Jail Bharo, Rail Roko, Rasta Roko and any other forms of mass protest to fight the MSP loot by corporate forces and their intermediaries under the Modi-led NDA regime,” said the umbrella body of farmers organisations that led the 2020-21 farmer protests at Delhi’s borders.

The BJP in its 2014 election manifesto had promised to implement the M S Swaminathan rate of MSP but during the last 12 years, it has betrayed farmers, the SKM said.

At present, MSP is calculated based on A2+FL+50pc formula, which includes costs incurred by the farmer and the value of family labour, and adds 50 per cent of the cost to derive MSP.

In comparison, as per the C2+50pc formula recommended by the M S Swaminathan-led National Commission of Farmers, C2 means comprehensive cost which includes the A2+FL component, imputed rental value of owned land, interest on fixed capital, and rent paid for leased-in land. This is then added to 50 per cent of the cumulative cost to determine MSP.

“The MSP for paddy, the most important Kharif crop, for 2026-27 has been fixed at Rs 2,441 per quintal, whereas the C2+50pc price should be Rs 3,243 per quintal — a loss of Rs 802 per quintal for farmers. As per estimates, the national loss of paddy farmers for the 2026-27 season is Rs 3,07,597 crores,” the SKM said.

“Since 90pc of the production is not procured directly by government agencies under the APMC market system and due to denial of C2+50pc rate, an average five-acre paddy farmer in India suffers a devastating net loss of Rs 1,50,064 per season,” it added The SKM said this cost and price gap implies a recurring loss of Rs 30,013 per acre — severely draining the disposable income of rural families. This is estimated based on an average regional yield of 22.5 quintal per acre, it said.

“A farmer household receives a mere Rs 6,000 per year under the PM Samman Nidhi. If the MSP at C2+50pc recommendation is implemented, a farmer can save Rs 24,013 per acre — as per the 2026-27 rate — even after donating back Rs 6,000 to the Prime Minister’s nidhi (scheme). Remunerative price is the right of each farmer and they will achieve that through consistent struggles,” it said.

The SKM has announced a nationwide agitation beginning with “Jail Bharo” (fill jails), “Rail-Rasta Roko” (road and rail blockade) protests at over 1,000 locations on August 10, and culminating in kisan marches and mass action from November 26 in around 100 places across the country, including Delhi.

Implementation of the Swaminathan commission’s formula for MSP, and legal guarantee of procurement at MSP are among the key demands of farmer organisations under the banner, who have warned that the stir will continue until its principal demands are met. PTI AO ARB ARB

This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.

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