Centre Asked to Respond on Fixing MSP in Line with Production Costs

14-Apr-2026 06:02 PM

New Delhi. The Supreme Court has sought a response from the Central Government and other concerned parties regarding proposals submitted by various states to fix the Minimum Support Price (MSP) for agricultural crops in accordance with their actual production costs.

While admitting a petition filed in this regard for consideration, the Supreme Court bench directed the Central Government, the Directorate General of Foreign Trade (DGFT), and the Commission for Agricultural Costs and Prices (CACP) to submit their views on the matter.

Arguing on behalf of the petitioners, counsel stated that the petition raises an issue of immense significance concerning farmers across the country. Indian farmers are facing a severe financial crisis; far from securing a profitable price,

they are forced to struggle even to sell their produce at a rate that covers their actual production costs. Consequently, distressed farmers are resorting to suicide. In Maharashtra alone, over 17,000 cases of farmer suicides have been reported over the last five years.

The petitioners' counsel apprised the Supreme Court that the MSP for agricultural crops is frequently fixed at a level below their actual production costs.

The Supreme Court observed that the petition outlines various mathematical formulae and attempts to draw the Court's attention to them. Potential complications may arise regarding the valuation of land and capital, as these parameters vary significantly across different states; therefore, it is deemed essential to elicit the response (views) of the Central Government and other concerned stakeholders on this issue.