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MSP determined of Kharif crops far lower than the cost of production: States writes letter to the Center

The afficted states have requested to increase the MSP which could at least recover the production cost of the crops

Maruine Jones by Maruine Jones
23 November, 2025
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TAD NewsDesk, New Delhi: After the three Centre Farm laws passed by the government, there has been constant displeasure been expressed on part of the farmers as none of them were seeming to benefit them. Currently, Kharif crops namely paddy, sorghum, millet, arhar and others are currently being procured across the country.

Farmers are claiming that 90% of the paddy is being procured from the states of Punjab and Haryana and the rest of the crops are not even being procured.

Since the government agencies are not buying products from the farmers according to the new laws, it has resulted in a very low market price and farmers are compelled to sell their produce below the MSP.

In a comparison between the MSP and the cost of production across different states, it has been observed that the cost input during production has been much more than the set price by the government while procuring it.

The states which have opposed the prices and have asked to make amends upon the kharif prices are as follows

  • Jharkhand
  • Rajasthan
  • Maharashtra
  • Karnataka
  • Bihar
  • Andhra Pradesh
  • Odisha

The afflicted states have requested to increase the MSP which could at least recover the production cost of the crops.

Jharkhand

The Jharkhand government had demanded to set the MSP of groundnut at Rs 7,594 per quintal. But the Centre has fixed it at Rs 5,275 per quintal, that is Rs 2,319 less than the proposed rate.

Chief Minister, Hemant Soren had emphasized the need to protect the interest of the farmers who have returned to the state due to the Pandemic and provide them with adequate help. In addition, the concerned authority of the state also has pointed out to Dolly Chakraborty, Additional Secretary of the Union Ministry of Agriculture the difference between the prices proposed by the state and the prices declared by the Central government and have requested to make amends.

Rajasthan

In Rajasthan, the government has talked about the climatic terrain of the state and because of which the cost of production incurred was also higher than other states. There was is literally little or no rainfall in the state. So in their appeal, they have requested to increase the MSP of the rabi crops.

The state has asked to fix the prices of following cost at the following rates:

  • Maize at Rs 3,200 per quintal instead the Centre announced it to be Rs 1,850 per quintal
  • Soybean at Rs 4,200 per quintal while the Centre has fixed it at Rs 3,880 per quintal
  • Moong at Rs 8,470 per quintal but the Centre announced a much lower rate of Rs 7,196 per quintal.

Maharashtra

Records by the Ministry of Agriculture reveal that the MSP announced by the Centre is up to 53% less than the proposed prices of the Maharashtra government.

The state recommended to raise the MSP of paddy to Rs 3,968 per quintal, that of sorghum to Rs 3,745 per quintal, millet Rs 4,182 per quintal, maize Rs 2,163 per quintal, toor (arhar) Rs 6,211 per quintal, moong Rs 10,444 per quintal, urad Rs 8,900 per quintal, groundnut Rs 9,511 per quintal, soybean Rs 6,070 per quintal and cotton Rs 8,215 per quintal.

The Commission for Agricultural Costs and Prices (CACP) however argued that it has not got any report regarding the cost of cultivation.

Karnataka, Bihar, Odisha and Andhra Pradesh are facing similar issues and have written to the Union ministry of Agriculture depicting their woes and concerns.

Based on the recommendations of the CACP, the central government determines the MSP calculating it against the average cost of crops in all states. This time as many farmers are claiming throughout the country, apparently the cost of production has not been kept in mind and the prices declared are just too low causing a huge loss to most of the farmers.

 

Source: The Wire

Tags: CACPcost of productionKharif cropsMSP
Maruine Jones

Maruine Jones

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