At CACP meet, AIKS reiterates demand for MSP as recommended by Swaminathan Commission

New Delhi, Feb 18 (PTI) Participating in a meeting of the Commission for Agricultural Costs and Prices (CACP) on Tuesday, the All India Kisan Sabha (AIKS) reiterated its demand for MSP based on the "C2+50 per cent" formula, as recommended by the Swaminathan Commission, with legally-guaranteed procurement of Kharif crops in the marketing season 2025-26.

In a statement issued here, the AIKS, the farmers' wing of the Communist Party of India (Marxist), said the CACP meeting was held to consult the representatives of farmers' organisations, before finalising its recommendations for fixing the minimum support price (MSP) for 14 Kharif crops, including paddy, pulses, oilseeds, soybean and cotton, for the marketing season 2025-26.

"The AIKS underlined the fact that there was a big difference between the MSP fixed based on the A2+FL+50 per cent and the C2+50 per cent formula, which has now been a long-standing demand of the farmers of our country," the statement said.

"The AIKS representatives mentioned that even going by the conservative cost estimates of the CACP, the MSP for all the 14 Kharif crops in season 2024-25 was far below the C2+50. The difference was the actual loss suffered by the farmers," it added.

The AIKS also raised the issue of paddy and soybean prices and the spontaneous agitations of farmers.

It said the paddy MSP based on the A2+FL+50 per cent formula for the year 2024-25 was Rs 2,300 per quintal, Rs 712 per quintal less than the C2+50 per cent estimate of Rs 3,012 per quintal.

Similarly, for soybean, the MSP declared for the year 2024-25 was Rs 4,892 per quintal, Rs 1,555 less than the C2+50 per cent estimate of Rs 6,437 per quintal.

"However, the market price in the season was Rs 3,000 to Rs 3,500 per quintal only, forcing the farmers to undertake widespread protests in the states where soybean is cultivated," the AIKS said.

The MSP is the lowest price set by the government for purchasing certain crops from farmers. The CACP, an attached office of the Union agricultural ministry, suggests MSPs for specific crops.

The "A2+FL+50 per cent" formula includes the costs incurred by the farmer and the value of the family labour, and adds 50 per cent of the cost to derive the MSP.

In comparison, according to the "C2+50 per cent" formula recommended by the National Commission on Farmers chaired by M S Swaminathan, C2 is the comprehensive cost, which is the A2+FL cost and also adds the imputed rental value of owned land and interest on fixed capital, the rent paid for leased-in land, plus 50 per cent of the achieved value to determine the MSP.

Demanding more public investment in agriculture, the AIKS requested the CACP to recommend a withdrawal of the Goods and Services Tax (GST) on agricultural inputs, including seeds, to cut down input costs.

"The dominance of corporate companies in seed and fertiliser markets and withdrawal of fertiliser subsidies in the last four consecutive budgets have resulted in a huge hike in prices and increasing the cost of production," it said.

While demanding a statutory status for the CACP, the AIKS also raised the issue of National Policy Framework on Agricultural Marketing (NPFAM), describing it as a move against the federal rights of the states, the state-supported APMC network across the country and to eliminate the MSP-based procurement system.

It said CACP Chairman Vijay Paul Sharma opined that the APMC system needs to be protected and further strengthened.

The AIKS was represented at the meeting by its finance secretary, P Krishnaprasad, and CKC member Pushpendra Tyagi. PTI AO RC

Source: PTI