Supreme Court Seeks Centre’s Reply on Plea to Link MSP to Full C2 Cultivation Costs

Overview

• India’s top court, which issued notices Monday, asked the Centre, the farm price commission and the trade directorate to respond to a petition on how minimum support prices are set.
• The plea by three Maharashtra farmers asks the court to require MSP at least at the weighted average of C2 costs and to ensure the government actually buys crops at that price.
• Petitioners clarified they are not seeking a 50% profit over costs and want MSP to cover the full C2 cost, which includes inputs, family labour, land rent and interest on capital.
• The bench flagged hurdles in valuing land and capital that differ by state and said ordering a formula change could amount to rewriting economic policy.
• The filing says procurement works mainly for wheat and rice and claims many growers cannot recover costs, pointing to distress and reduced demand for crops like millets.