The capital, NCT of Delhi, will start witnessing the pack of tractors on its outskirts. Once again, farmers from Haryana, Punjab, Rajasthan, and Uttar Pradesh started gathering around the borders of Delhi to hold a protest against the central government. On 12 February, several senior BJP leaders met with farmers to discuss the agitation issues in Chandigarh. However, the discussion could have been more fruitful, after which the Pandavas decided to start Kisan Andolan 2.0. 

Farmers initiated this agitation by demanding their crops’ MSP (minimum support price). The crop growers informed the media that they left the protest sites in 2021, considering the promises made by India’s government regarding MSP. 

The meeting held at Chandigarh includes Union Food and Consumer Affairs Minister Piyush Goyal, Agriculture Minister Arjun Munda and government officials. Samyukta Kisan Morcha (non-political) convenor Jagjit Singh Dallewal and Kisan Mazdoor Sangharsh Committee coordinator Sarwan Singh Pandher represented the farmers in the MSP talks. 

What is MSP? 

The “minimum price” (MSP) is set for any crop that the government deems to be profitable for farmers and thus worthy of “support.” Minimum support price is recommended by the Commission for Agricultural Costs & Prices (CACP). The Ministry of Agriculture and Farmers Welfare department recommends prices for 22 specific crops and a fair and remunerative price for sugarcane. 

How MSP is decided?

When recommending MSP, the CACP considers several factors, including cultivation costs, supply & demand conditions, domestic & international market price trends, & the effects on consumers and the environment.

Three types of production costs are taken into account by the CACP: A2, A2+FL, and C2. – A2 pays for farmers’ direct costs, such as labour, seed, fertiliser, and pesticide costs.

A2+FL comprises the value of unpaid family labour in addition to A2 costs. – In addition to A2+FL, C2 is a more complete cost that considers capital assets and owned land rentals as well as interest that is forfeited.

The Union government’s Cabinet Committee on Economic Affairs (CCEA) makes the final determination regarding the levels of the Minimum Support Price and other recommendations