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Farmers Demand MSP Based on Swaminathan Commission's Formula, Despite Government Hike

Despite a Rs 150 per quintal hike in wheat's minimum support price (MSP) by the Central Government, farmers remain dissatisfied, insisting that prices align with the Swaminathan Commission's recommended 50% profit over input costs.

Farmers Demand MSP Based on Swaminathan Commission's Formula, Despite Government Hike
Farmers Demand MSP Based on Swaminathan Commission's Formula, Despite Government Hike (Xylem)

In response to the recent increase of Rs 150 per quintal in the Minimum Support Price (MSP) for wheat by the Central Government, farmers express discontent with the existing pricing system.

They call on the government to realign the MSP in accordance with the Swaminathan Commission's recommendations, which advocate for a 50% profit margin over input costs.

The recent revision in MSP has resulted in an increase in the price of wheat from its previous level of Rs 2,125 per quintal to the current price of Rs 2,275 per quintal. Nonetheless, farmers express concerns over a troubling pattern of declining wheat crop yields in recent years. Despite the higher MSP, they contend that their real income is decreasing due to rising input expenses and reduced yields.

Sarbarinder Singh, a farmer, highlighted the significant rise in input expenses, which have surged from about Rs 1,500 to Rs 2,000. The prohibition on crop residue burning has necessitated farmers to invest additional funds in procuring diesel for field preparation.

Furthermore, Singh highlights that farmers are incurring supplementary costs, including a fee of Rs 1,000 per acre to compensate baler machine operators for bundling crop residues.

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Inderbir Singh, another farmer, concedes that this year's MSP hike is comparatively more favorable than those in the past. However, when factoring in the escalating costs associated with diesel, fertilizers, and chemicals, he suggests that the MSP increase might not be as substantial as it initially seems.

Inderbir underscores the significance of considering the expenses related to manual labor contributed by farmers and their families, as well as land rent, which frequently leads to agriculture being an unprofitable undertaking.

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Farmers contend that the government should determine the MSP by taking into account the actual production costs, encompassing labor and land rent. They insist that the government should ensure that MSP is accessible for all crops it has been designated for, allowing them to achieve fair and profitable returns on their agricultural activities.

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