Revisiting the MSP Framework: The C2+50% Formula and Agrarian Discontent
GS3
The Samyukt Kisan Morcha has expressed strong opposition to the government's Rabi MSP announcement, reigniting the debate over the Swaminathan Commission's recommendations and the methodology for calculating farm income.
The recent rejection of the 2027-28 Rabi season Minimum Support Price (MSP) by the Samyukt Kisan Morcha (SKM) highlights a persistent structural tension in Indian agriculture. At the heart of this conflict is the methodology used by the Commission for Agricultural Costs and Prices (CACP) to determine support prices. While the government currently calculates MSP based on A2+FL (actual paid-out costs plus the imputed value of family labor), farmers' organizations continue to advocate for the C2+50% formula.
The C2 (Comprehensive Cost) approach is significantly more inclusive, as it accounts for the imputed rent on owned land and interest on fixed capital, in addition to the costs covered under A2+FL. The demand for a 50% margin over this comprehensive cost, as proposed by the National Commission on Farmers (Swaminathan Commission), is rooted in the argument that current MSP levels fail to provide a remunerative income, thereby exacerbating rural indebtedness and agrarian distress.
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