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All India Kisan Sabha Accuses Union Govt of ‘Betrayal', Says New MSPs Exaggerated, Fall Short of Promise

Menu हिंदी తెలుగు اردو Home Politics Economy World Security Law Science Society Culture Editor's Pick Opinion Support independent journalism. Donate Now Government All India Kisan Sabha Accuses Union Govt of 'Betrayal', Says New MSPs Exaggerated, Fall Short of Promise The Wire Staff 8 minutes ago The AIKS alleged that the MSPs fall far short of the promised C2+50% (comprehensive cost plus 50% profit) formula. Representative image of farmers. Photo: Rajarshi Mitra/Flickr (CC BY 2.0 DEED) Real journalism holds power accountable Since 2015, The Wire has done just that. But we can continue only with your support. Contribute now The All India Kisan Sabha (AIKS) on Thursday (May 29) launched a scathing attack on the BJP-led Union Government, accusing it of 'yet another betrayal' of farmers with the newly announced minimum support prices (MSP) for the kharif season 2025-26. The influential farmers' body alleges the MSPs fall far short of the promised C2+50% (comprehensive cost plus 50% profit) formula and that the government has indulged in 'a jugglery of numbers and distorted data to wilfully mislead the public.' In a detailed press release, AIKS contended that the government's claims of a major boost to farmers, with an approved MSP package reportedly worth Rs 2.07 lakh crore, are 'far removed from the truth.' The organisation reiterated the demand based on the 2006 Dr. M.S. Swaminathan Commission report, which recommended that farmers be paid a remunerative price at least 50% above the comprehensive cost of cultivation (C2). AIKS stated that 'even after 19 years, they remain hollow promises.' The press release highlighted significant discrepancies for key crops. For paddy, the most important kharif crop, the MSP was increased by a mere Rs. 69 per quintal to Rs. 2,369. However, AIKS, citing CACP (Commission for Agricultural Costs and Prices) projections, stated the C2+50% price for paddy should be Rs. 3,135 per quintal, resulting in a loss of Rs. 766 per quintal for the farmer. The organisation also pointed out that state-level CACP cost projections for paddy in states like Punjab (Rs. 2,787), Telangana (Rs. 3,673), and Maharashtra (Rs. 4,159) are substantially higher, with these states having recommended much higher MSPs. AIKS further claimed that even the government's exaggerated MSP increases for crops like nigerseed (Rs. 820), ragi (Rs. 596), cotton (Rs. 589), and sesamum (Rs. 579) per quintal fall significantly short. For instance, the MSP for nigerseed is fixed at Rs. 9,537 per quintal, while the C2+50% price should be Rs. 12,037, leading to a potential loss of Rs. 2,500 per quintal. Similarly, losses per quintal were calculated for ragi (Rs. 1,078), cotton (Rs. 2,365), and sesamum (Rs. 3,102), among others detailed in a comparison table provided by AIKS. A comparison table provided by AIKS, depicting what the organisation claims to be the government's exaggerated MSP. Photo: AIKS The farmers' body also raised concerns about the practical benefits of MSP, stating, 'MSP announced remains mostly on paper since there is no assured procurement.' It cited 2021-22 data showing the average price received by paddy farmers was 36% lower than the MSP@A2+FL, and Tur/Arhar farmers in Telangana received 11% less than the MSP. AIKS points to low procurement rates Furthermore, AIKS pointed to low procurement rates, with only 17.3% of paddy farmers nationally benefiting from MSP procurement in 2023-24. Procurement was described as 'very meagre' in states like Uttar Pradesh (5.8%), Bihar (4.1%), and Assam (below 5%). For other crops, only 0.23% of Tur/Arhar, 0.72% of Groundnut, and 9.3% of Cotton production were reportedly procured. Long-term data, according to AIKS, shows a deceleration in the growth of real MSP for almost all crops. Real MSP for paddy grew at 1.17% per annum between 2004-05 and 2013-14 but declined to 0.53% per annum between 2014-15 and 2025-26. Nine out of sixteen crops studied reportedly showed a sharp slowdown, with crops like paddy, maize, tur/arhar, urad, and groundnut seeing growth rates below 1% per annum in the last decade. The AIKS concluded by warning the BJP-led Union government 'to desist from data manipulation and refrain from misleading the public.' The organisation called upon all its units 'to expose the farcical claims' and announced its intention to 'unite with farmers' organisations to launch a fierce movement demanding fair price for crops.' 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