Several farmer organizations, united under the umbrella name Samyukta Kisan Morcha (SKM), rejected the new Minimum Support Prices (MSP) for winter crops for 2027–28, which the government announced on September 30. They stated that the MSP increase for wheat by 25 rupees per quintal, equivalent to only 25 paisa per kilogram, is an insult.
The farmers' group also demanded an immediate review of the MSP for all winter crops, including wheat, and insisted on full state autonomy in setting bonuses.
Referencing this increase, the farmers' group noted: '25 paisa per kilogram is not a price, it is an insult... Yet the government calls this a 106% profit (revenue above production cost). '
SKM accused the Centre and the Commission for Agricultural Costs and Prices (CACP) of ignoring the states' recommendations because the calculation of production costs did not account for the rise in diesel fuel prices and other resource costs.
Highlighting that the price of diesel fuel, which powers every tractor and pumping station, increased fourfold in ten days in May by approximately 7.50 rupees per liter, SKM also demanded the cancellation of the diesel price hike.
Given the drought conditions this year, the Centre announced new MSPs last Wednesday with an emphasis on a more substantial increase for low water-consuming oilseeds, pulses, and coarse grains, so that farmers could opt for these crops over popular winter wheat. The new MSP for wheat for 2027–28 was set at 2610 rupees per quintal, representing an increase of less than 1% compared to the existing supported price of 2585 rupees per quintal in 2026–27.
The largest absolute increase in MSP was announced for calendula (oilseed crop) at 675 rupees per quintal, followed by rapeseed and mustard (oilseed crops) with an increase of 413 rupees per quintal. Increases of 390 rupees per quintal, 136 rupees per quintal, and 83 rupees per quintal were provided for lentils (Masur), barley (coarse grain), and gram, respectively.
The Ministry of Agriculture of the Union noted that the expected margin above production cost, calculated by CACP, is highest (106%) for wheat, followed by 96% for rapeseed and mustard; 92% for lentils; 59% for gram; 58% for barley; and 50% for calendula.
However, agricultural expert and former member of the Uttar Pradesh Planning Commission, Sudhir Panwar, questioned this increase, stating that it is below the inflation rate of resource costs. He remarked: 'This indicates that the government has rejected the norm of providing 50% profit on costs under the guise of diversification.'
The new MSP for the winter crop harvest season, which begins on April 1 next year, will signal to farmers regarding crop selection in the upcoming sowing season, which is expected to face challenges of low soil moisture and insufficient irrigation water availability due to rainfall deficit.
The government asserted that the MSP increase for all six winter crops aligns with the Union Budget announcement for 2018–19 to fix the supported price at no less than 1.5 times the all-India weighted average production cost, ensuring a minimum profitability of 50% above production cost.
The CACP calculation includes all incurred costs such as wages for hired labor, bovine/machinery labor, rent for leased land, costs for using material resources like seeds, fertilizers, manure, irrigation charges, depreciation of tools and farm buildings, interest on working capital, diesel/electricity for running pumping stations, other expenses, and imputed value of family labor. This methodology is called A2+FL, meaning incurred cultivation costs plus imputed value of family labor.
Nevertheless, SKM demanded a comprehensive cost (C2 methodology), which should also include the family's land rental value and interest on own capital, as well as a legally guaranteed MSP at the level of C2+50%.
Calling for protests against the new MSP, SKM strongly urged farmers and rural youth of India on Saturday to burn copies of the recent increase notification in every village, stating that this would continue until a legal MSP at the level of C2+50% is achieved.