Why farmers are not getting fair price of wheat, know how much is the cost and how much MSP is available?

Is the price of wheat getting according to the cost?

Even today farmers are struggling with the problem of not getting the fair price for the crop. See an example of this. The Bihar government has declared the cost of wheat production in its state at Rs 1722 per quintal. Gujarat Rs 2094, Punjab Rs 1,864 and Haryana Rs 1,705. This is all recorded in the government records. But the central government has considered the average cost price of the country as just 960 rupees per quintal. The minimum support price (MSP) of wheat at Rs. 1975 per quintal has been fixed by adding 106 percent profit on this cost. The question is that when a state did not mention the cost of production at 960 rupees, then how was this amount considered as the average cost?

So, should it be considered that the pricing scale is wrong? Experts say that when the Commission for Agricultural Costs and Prices (CACP) itself states that different crops have different costs according to the states, then how can farmers benefit from fixing the average price? Until the MSP is decided according to each state, the dream of increasing the income of farmers will not be fulfilled. If seen, the current MSP is either less than the production cost of many states or is marginally higher. 1975 per quintal is the official price. In the open market, wheat is being sold at a rate of 1500 to 1600 rupees only.

What did the first chairman of National Farmers Commission say?

Sompal Shastri, former Union Agriculture Minister and the first chairman of the National Commission on Farmers, told TV-9 Digital that farmers are not getting the right price for their produce. Because the recommendation of the Swaminathan Commission was not implemented in its original spirit. If the price is fixed by the C-2 formula according to the recommendations of the Commission, then farmers should get MSP of wheat 2500-2700 per quintal.

According to Shastri, the government will benefit if the government decides the MSP by adding 50 per cent profit on the cost estimate of CACP at least. According to CACP estimates, the average cost of 12 major wheat producing states will also come to Rs 1670. It should be profitable.

State-wise cost of production of wheat

So how will farmers’ income double?

According to the Swaminathan Commission, farmers should get one and a half times the price on C-2 formula. The government also claims that it is fixing the MSP with at least 50 per cent profit above the cost of production of crops. But the situation is not clear on the cost price. The recommendation of the states on the cost of production is being rejected outright. C-2 includes the price of fertilizer, seeds, water as well as the wages of the farming family, rent of land owned and interest on capital.

According to Shastri, “The government is actually fixing the MSP based on the A2 + FL formula.” This includes the rent of the leased land, but does not include the rent of the land owned and the interest on the capital. The question is, when the cost assumed by the CACP will not be received, how will the Farmers Income double till then?

CACP will get constitutional status then matter

Agriculture expert Binod Anand says that till the CACP, which determines the MSP, will not get constitutional status, the demand of getting the right price to the farmers cannot be met. Right now this commission can only give advice to the government. The center is completely free to accept or not accept it. That is, the government is not obliged to accept its recommendations. When then the MSP will not be decided according to the state-wise and variety till then, justice will not be done to the farmers.

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