3 weeks ago
Paddy farmers face severe losses over denied Swaminathan MSP formula
Farmers in India grow a crop called paddy, which is rice.
The government sets a minimum support price, or MSP, which is the lowest price at which farmers can sell their crop safely.
A big group of farmers called the Samyukt Kisan Morcha says this price is too low.
A famous scientist, M S Swaminathan, suggested a formula that counts everything a farmer spends, including rent for land and interest on loans.
The farmers' group says the government promised in 2014 to use Swaminathan's formula but did not.
Because of this, the group says a farmer with five acres loses about Rs 1.5 lakh every growing season.
For 2026-27, the group says paddy should be bought at Rs 3,243 per quintal instead of the fixed Rs 2,441 per quintal.
The group says these losses add up to about Rs 3.07 lakh crore across the whole country.
The group wants the government to fix this and has asked farmers to protest on August 10 by filling jails and blocking roads and railways, with more marches starting in November.
The Samyukt Kisan Morcha (SKM) claimed an average five-acre paddy farmer in India suffers a net loss of around Rs 1.50 lakh per season because MSP is not implemented as per the M S Swaminathan commission formula.
SKM has called on paddy farmers to join an August 10 nationwide protest — Jail Bharo, Rail Roko, Rasta Roko — at over 1,000 locations, followed by kisan marches from November 26.
The group said paddy MSP for 2026-27 was fixed at Rs 2,441 per quintal under the A2+FL+50pc formula, against Rs 3,243 per quintal under the recommended C2+50pc formula — a loss of Rs 802 per quintal.
SKM estimated the cumulative national loss of paddy farmers for 2026-27 at around Rs 3.07 lakh crore (Rs 3,07,597 crore), with recurring losses of Rs 30,013 per acre.
It noted that 90 per cent of paddy production is not procured directly by government agencies under the APMC market system, and demanded implementation of the C2+50pc rate and a legal guarantee of procurement at MSP.
- Who
- Samyukt Kisan Morcha (SKM), the umbrella body of farmers' organisations that led the 2020-21 protests at Delhi's borders, issued the statement.
- What
- SKM said paddy farmers are incurring heavy losses because MSP is not fixed per the Swaminathan commission's C2+50pc formula, and announced nationwide protests demanding the formula's implementation and a legal guarantee of MSP procurement.
- Where
- The statement was issued in New Delhi; protests are planned at over 1,000 locations across India, including Delhi.
- When
- The statement was issued on Thursday, August 6; mass protests are set for August 10, with kisan marches and mass action beginning November 26.
- Why
- Because the 2026-27 paddy MSP was fixed at Rs 2,441 per quintal under the A2+FL+50pc formula instead of the C2+50pc rate of Rs 3,243 per quintal, which SKM says causes steep losses to farmers.
Samyukt Kisan Morcha (Farmers' Unions)
Modi-led NDA Government
MSP pricing formula
Samyukt Kisan Morcha (Farmers' Unions)
MSP must be fixed using the Swaminathan commission's C2+50pc formula, which includes comprehensive costs such as imputed land rent and interest on capital — giving Rs 3,243 per quintal for paddy.
Modi-led NDA Government
MSP is currently fixed under the A2+FL+50pc formula, which adds 50 per cent to the farmer's paid-out costs and family labour value — setting paddy MSP at Rs 2,441 per quintal.
2014 poll promise
Samyukt Kisan Morcha (Farmers' Unions)
The BJP promised in its 2014 election manifesto to implement the Swaminathan-formula MSP and has 'betrayed' farmers over the past 12 years.
Modi-led NDA Government
The government has continued to set MSPs under the existing A2+FL+50pc framework rather than adopting the Swaminathan formula.
Support for farmers
Samyukt Kisan Morcha (Farmers' Unions)
A farmer household gets only Rs 6,000 per year under PM Samman Nidhi, while implementing C2+50pc MSP could let a farmer save Rs 24,013 per acre; remunerative price is a farmer's right.
Modi-led NDA Government
The government provides direct income support of Rs 6,000 per year to farmer households through PM Samman Nidhi.
Key facts
- Estimated net loss per paddy farmer (5-acre)
- Rs 1,50,064 per season
- Paddy MSP for 2026-27 (current formula)
- Rs 2,441 per quintal (A2+FL+50pc)
- Paddy MSP as per Swaminathan formula
- Rs 3,243 per quintal (C2+50pc)
- Loss per quintal
- Rs 802
- Estimated national loss for 2026-27
- Rs 3,07,597 crore
- Loss per acre
- Rs 30,013 (based on 22.5 quintals/acre yield)
- PM Samman Nidhi support
- Rs 6,000 per farmer household per year
- Protest schedule
- August 10 at 1,000+ locations; kisan marches from November 26
Quotes
SKM spokesperson
Representative of the Samyukt Kisan Morcha, umbrella body of farmer organisations
“The MSP for paddy, the most important Kharif crop, for 2026-27 has been fixed at Rs 2,441 per quintal, whereas the C2+50pc price should be Rs 3,243 per quintal — a loss of Rs 802 per quintal for farmers. As per estimates, the national loss of paddy farmers for the 2026-27 season is Rs 3,07,597 crores.”
theprint.in
“SKM calls upon paddy farmers across India to join the August 10 mass protest of Jail Bharo, Rail Roko, Rasta Roko and any other forms of mass protest to fight the MSP loot by corporate forces and their intermediaries under the Modi-led NDA regime.”
theprint.in
Sources
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