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Centre's MSP does not cover input costs, claims Congress

Centre's MSP does not cover input costs, claims Congress

The Hindu5 days ago

The Congress on Thursday (May 29, 2025) claimed that the Minimum Support Price (MSP) for Kharif crops did not even cover the input costs and accused the Modi government of deceiving farmers in the name of MSP.
'The MSP has become the maximum suffering for the producers,' Congress general secretary Randeep Surjewala told reporters at a press conference.
Mr. Surjewala said the Centre is crediting itself for declaring a higher MSP for crops, but the reality is that the MSP is far lower than the 'cost (C2) plus 50 per cent' formula recommended by the Swaminathan Commission. He said while the Centre has declared MSP, it is hardly buying crops at that rate and farmers are being 'cheated'. 'What is the point of announcing the MSP when there is no purchase?' he asked.
Referring to the MSP on paddy announced by the Centre, the Congress leader claimed that it was ₹766 lower than the C2 plus 50% formula. Mr. Surjewala said the right MSP should have been ₹3,135, while the government had announced only ₹2,369 MSP for the paddy.
He said even the NDA/BJP-ruled States had said that the input costs were more than the MSP and Bihar, Gujarat and Maharashtra had recommended MSP of ₹3,260, ₹3,000 and ₹4,783 respectively.
Mr. Surjewala asserted that the 'marginal increase' in MSP by the government is less than the inflation rate as farmers' costs are rising due to the increase in prices of diesel, electricity, seeds and fertilizers. He also referred to the reduction of ₹24,000 crore in fertilizer subsidy by the government.

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