The Odisha Government said the Commission on Agricultural Costs and Prices (CACP) ignored its suggestion of taking C2 as basis of recommending minimum support price for paddy for kharif season 2023-24, for which MSP of paddy was much below than the State’s suggested price.
The CACP’s MSP recommendations appeared to be based on A2+FL method of estimation for arriving MSP whereas State wanted C2 to be basis of MSP recommendation, says Odisha’s Agriculture and Farmer Empower Department in its opinion on Cabinet Committee on Economic Affairs’ note on price policy of kharif crops marketing season 2023-24.
The C2 cost refers to comprehensive cost of cultivation which is arrived by taking paid out costs, value of family labour, interest on the value of owned capital assets, rent paid for leased-in land and the rental value of owned land. On the contrary, A2+FL formula is sum of paid out cost and value of family labour. The State Government considers C2 cost to be a better indicator of cost of production.
Odisha government had suggested MSP of ₹2930 per quintal of common paddy and ₹ 2950 for ‘A’ grade paddy. The CACP, however, recommended ₹ 2183 and ₹ 2203 for quintal of common and ‘A’ grade paddy respectively.
“The commission’s recommendation of MSP of paddy is much below the State’s suggestion which is based on practical assessment of cost of cultivation and unanimous resolution passed by the Odisha Legislative Assembly. Odisha being a major paddy growing State and having a robust procurement mechanism it is felt that its farmers would be hardly benefitted out of such marginal increase in MSP for paddy,” says Odisha Government.
Besides, the Commission had also recommended lower prices of MSP for non-paddy crops like Urad as compared to the State’s suggestion, it said.
In case of MSP for Maize, Ragi, Tur, Moong, Groundnut in shell, Sunflower seeds, Sesamum, Niger seeds, Cotton medium staple and Cotton long staple, CACP has recommended higher price than the suggested prices of Odisha.
The MSP for paddy has been a major political issue in Odisha. The ruling Biju Janata Dal targets Bharatiya Janata Party over lower MSP for paddy. Majority of farmers in Odisha depend on paddy crop and lower MSP means lower income for farmers. During 2022-23 Kharif season, a record 14,94,320 farmers had sold paddy to the government at MSP. Over 65 lakh tonnes of paddy were procured in the last kharif marketing season.
