Declare crop MSP based on 'C2+50 pc' formula in interim budget: SKM to govt

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New Delhi, Jan 31 (PTI) A day before the finance minister presents the interim budget for 2024-25, the Samyukt Kisan Morcha on Wednesday said the BJP-led government should fulfil its promise of providing Minimum Support Price (MSP) for crops based on the "C2+50 per cent" formula, which takes into account comprehensive cost of production.


In a statement, the umbrella body of farmers' organisations alleged the PM Kisan Samman Nidhi was an "eyewash" and meant to "deny" farmers their due right of MSP.

Farmers are losing money despite Rs 6,000 being given under the scheme due to the MSP calculation formula not being changed, it claimed. If the government fails to meet their demands, farmers will declare "no votes for BJP" in the upcoming Lok Sabha polls, it said.

The SKM said the current MSP for paddy is Rs 2,183 per quintal for the year 2023-24, which is based on A2+FL formula, which means it includes costs incurred by the farmer and the value of the family labour.


However, as per the 2006 recommendation of the National Commission of Farmers chaired by M S Swaminathan, C2 means comprehensive cost, which is A2+FL cost, and also adds imputed rental value of owned land, and interest on fixed capital, rent paid for leased-in land. As per this formula, the MSP for paddy would be Rs 2,866.5 per quintal for the year 2023-24, it said.

"A2+FL price is less by Rs 683.5 per quintal compared to this sum," it said.

"If the Union government implements MSP at C2+50 per cent, considering the average productivity of paddy as 25 quintal per acre and existence of mandi system with procurement, a Punjab farmer will benefit Rs 17,075 per acre," the SKM claimed.


"If the (Narendra) Modi government is not ready to declare MSP at C2+50 per cent with procurement for all crops in the Vote on Account, then the farmers will declare no vote to BJP in the general elections," the SKM, which had led the 2020-21 protests at Delhi's borders, said.

The SKM reminded Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman that the BJP, in its 2014 election manifesto, had committed to provide MSP based on the "C2+50 per cent" formula if they get elected.

The farmers' body claimed that in Punjab, where MSP is provided, a paddy farmer is facing a loss of at least Rs. 28,105 per acre per year despite the Kisan Samman Nidhi amount, while in Uttar Pradesh, where crops are not procured by MSP, a farmer is facing a loss of around Rs 47,300 per acre per year. PTI AO SMN