New Delhi, 04^th October 2026 | ANN: The Samyukta Kisan Morcha (SKM), an umbrella body of farmer organizations, has rejected the Centre’s newly announced minimum support prices (MSPs) for six Rabi crops for the 2027-28 marketing season, calling the ₹25-per-quintal increase in wheat MSP an “insult” and reiterating its demand for a legal guarantee of MSP at 50% above the comprehensive C2 cost of production.

The Union Cabinet on September 30 raised the MSP for wheat from ₹2,585 to ₹2,610 per quintal. The largest increase was announced for safflower at ₹675 per quintal, followed by rapeseed and mustard at ₹413. Lentil MSP was raised by ₹390, barley by ₹136 and gram by ₹83 per quintal.

In a statement issued on October 3, the SKM said the ₹25 increase in wheat MSP amounted to only 25 paise a kilogram. “25 paise a kilo is not a price, it is an insult,” it said, questioning the government’s claim that the new wheat MSP represents a 106% return over the cost of production.

The government calculation, however, is based on the all-India weighted average cost of production used by the Commission for Agricultural Costs and Prices (CACP). The Agriculture Ministry estimates the cost of producing wheat at ₹1,264 per quintal, against an MSP of ₹2,610, giving a 106% margin. The corresponding margins are 96% for rapeseed and mustard, 92% for lentil, 59% for gram, 58% for barley and 50% for safflower.

The Centre says the MSP formula is in line with the principle announced in the 2018-19 Union Budget of fixing MSP at a minimum of 1.5 times the all-India weighted average cost of production.

C2 versus A2+FL

At the heart of the dispute is the methodology used to calculate the cost of cultivation.

The government’s MSP calculation follows the A2+FL approach, which includes paid-out cultivation expenses and the imputed value of family labour. The SKM wants the broader C2 methodology, which also factors in the rental value of farmers’ own land and interest on their own fixed capital.

Based on its calculation of C2 costs, the SKM has demanded MSPs of ₹3,418 per quintal for wheat, ₹3,518 for barley, ₹9,205 for gram, ₹9,947 for lentil, ₹8,684 for rapeseed and mustard and ₹10,630 for safflower. These are the SKM’s demands and are not the MSPs notified by the Centre.

Agriculture experts have also questioned whether the latest increase in wheat MSP adequately reflects rising input costs.

The SKM has separately criticised the rise in diesel prices, saying higher fuel costs affect tractor operations and irrigation. It has demanded a rollback of the increases and alleged that recommendations made by state governments on MSP were not adequately reflected in the final rates.

The Centre, meanwhile, maintains that the CACP considers the views of state governments and other stakeholders before recommending MSPs. It also points to procurement and price-support schemes as mechanisms to protect farmers when market prices fall below MSP.

Rajasthan moong prices highlight MSP implementation gap

The SKM’s criticism comes amid reports of farmers selling crops below MSP in several states, highlighting the gap between an officially announced support price and the price actually realized by growers.

In Rajasthan, fresh arrivals of moong in September were reportedly being traded at an average of around ₹7,452 per quintal, below the MSP of ₹8,780 for the 2026-27 season. The gap of about ₹1,328 per quintal, or roughly 15%, came as farmers faced heavy arrivals and uncertainty over the start of government procurement.

Nearly 63,000 tonnes of new moong reportedly arrived in Rajasthan mandis between September 1 and September 20. Trade analysts attributed the weakness in prices partly to increased arrivals and subdued demand from millers, traders and stockists.

Farmer organizations in the state called for immediate MSP-based procurement, arguing that growers were being forced to sell below the official benchmark. Reported losses varied by market and quality, with some estimates putting the gap at between ₹1,280 and ₹3,200 per quintal.

Moong is among the pulses covered under the Centre’s Price Support Scheme (PSS), under which government agencies can procure notified pulses, oilseeds and copra at MSP when market prices fall below the support price, subject to scheme conditions and state requests.

The Rajasthan episode has therefore brought the question of procurement to the forefront. While the Centre maintains that the PSS is intended to prevent distress sales, the timing and extent of procurement can determine whether farmers are actually able to realize the announced MSP.

On September 30, the Centre separately approved procurement worth ₹5,547.99 crore of pulses and oilseeds in Uttar Pradesh, Karnataka and Telangana under the PSS, covering an estimated 7.06 lakh tonnes.

Below-MSP sales reported in other states

Similar concerns have been reported from Haryana and Punjab.

In Haryana, farmers in parts of Bhiwani and Rewari have alleged that delays in government procurement of bajra forced them to approach private traders. Against the MSP of ₹2,900 per quintal, some farmers reportedly received offers of around ₹1,800-2,000. The administration, however, has said procurement has begun in several mandis and that farmers are being paid MSP.

Punjab has also reported concerns over cotton prices. As arrivals increased, private traders and millers purchased much of the produce, while some lots were reportedly sold below the government MSP pending procurement arrangements by the Cotton Corporation of India.

Early-arriving paddy in Punjab also raised concerns before the scheduled start of government procurement. Some farmers reportedly sold early-maturing varieties to private buyers for around ₹2,000-2,100 per quintal, below the applicable MSP of ₹2,461.

The reports underline a key distinction in the MSP debate: an announced MSP does not automatically become a floor price unless farmers have access to procurement or a buyer willing to pay the notified rate.

The government points to its procurement system and price-support schemes, while farmer organizations argue that procurement remains inadequate for several crops and regions, leaving growers exposed to market prices.

Centre cites rise in procurement

The government has defended its MSP policy by pointing to an increase in procurement over the past decade.

According to the Agriculture Ministry, wheat procurement during 2014-15 to 2025-26 totalled 3,715 lakh tonnes, compared with 2,254 lakh tonnes during 2004-05 to 2013-14. Procurement of the six mandated Rabi crops rose from 2,302 lakh tonnes in the earlier period to 3,921 lakh tonnes.

The Centre has also said that higher increases for pulses and oilseeds are intended to encourage crop diversification, particularly amid concerns over water availability and soil moisture following deficient monsoon rainfall.

The SKM, however, argues that diversification will not succeed unless farmers receive remunerative prices and have an assured market for alternative crops.

Rabi sowing season puts focus on prices

The new MSPs will serve as an important signal to farmers as they prepare for the upcoming Rabi sowing season, which could face challenges from lower soil moisture and limited irrigation availability in parts of the country.

The government says the relatively higher increases for pulses and oilseeds are aimed at encouraging farmers to shift towards crops requiring less water. The SKM counters that the issue is not merely the level of the announced MSP but whether farmers can actually sell their produce at that price.

For the government, the existing system meets the 1.5-times cost principle through the A2+FL methodology, backed by procurement and price-support interventions. For the SKM, the 50% margin must instead be calculated over the comprehensive C2 cost and supported by a legal guarantee.

The SKM has called for immediate revision of the Rabi MSPs, freedom for states to provide bonuses, a rollback of diesel price increases and government procurement of every crop in every state. It has also called on farmers and rural youth to burn copies of the latest MSP order in villages as part of its protest campaign.

The organisation has said its agitation will continue until its demand for a legally guaranteed MSP at C2+50% is accepted.
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