In a significant development for India’s agricultural sector, the Supreme Court on Monday sought a response from the Union Government and the Commission for Agricultural Costs and Prices (CACP) regarding a petition that demands a more localized and comprehensive approach to fixing the Minimum Support Price (MSP).
The Bench, comprising Chief Justice Surya Kant and Justice Joymalya Bagchi, issued notices on a plea that seeks to shift how crop prices are determined. The petitioners argue that the “exact cost of cultivation” as proposed by individual states should be given decisive weightage when the Centre sets MSP rates, ensuring that regional variations in farming costs are accurately reflected.
Appearing for the petitioners, Advocate Prashant Bhushan emphasized the gravity of the matter, stating that the plea raises “a very important issue related to the farmers in the country.”
At the heart of the petition is the demand for a fundamental change in the MSP calculation methodology. Currently, while the CACP consults with various stakeholders, the final MSP is often criticized by farmer groups for not covering the actual expenses incurred by farmers in different geographical terrains. The plea specifically requests a direction to authorities to ensure that MSP is calculated based on the actual, localized costs of cultivation.
Beyond the calculation of prices, the petition raises a critical demand for “complete procurement.” It seeks a judicial direction to ensure that the government procures all notified crops from every farmer willing to sell at the MSP.
Currently, while MSP is announced for over 20 crops, actual government procurement is largely concentrated in specific regions and limited to a few crops like wheat and rice. The petitioners are seeking to bridge this gap, asking the court to direct appropriate steps to ensure that no farmer desirous of selling their notified crops at the MSP is turned away.
By issuing notices, the Supreme Court has now brought the central government’s MSP policies under judicial scrutiny. The responses from the Centre and the CACP are expected to clarify the feasibility of these demands and the government’s stance on evolving the current agricultural pricing regime.
