Paddy farmers across India could lose ₹3.07 lakh crore in the 2026-27 marketing season as most of their produce is sold below the price sought by farmers’ organisations, the Samyukta Kisan Morcha (SKM) has claimed.

The Union government has fixed the minimum support price (MSP) for paddy at ₹2,441 a quintal, against its demand for ₹3,243 under the C2+50% formula (As per the formula, MSP will be calculated at 50% above the comprehensive cost of production[C2]). But government agencies are procuring only 10% of the crop, leaving the remaining 90% to be sold in the open market at a much lower price of ₹1,850 a quintal.

Based on these figures, the SKM has found that the total loss to paddy farmers alone will be ₹3.07 lakh crore, which is about 6% of the total national Budget.

The SKM said even farmers who sell their paddy through government procurement lose money because the MSP is below the ₹3,243 a quintal they are demanding. It estimates that farmers lose about ₹30,013 an acre each season, with a five-acre farmer facing a loss of around ₹1.5 lakh.

Seeks guaranteed price

P. Krishnaprasad, SKM coordination committee member and national finance secretary of the All India Kisan Sabha, said farmers wanted a guaranteed price for their produce rather than government charity.

“The farmers want the rate of their paddy, and not charity,” he said, referring to the ₹6,000-annual assistance provided under the PM-KISAN scheme.

The SKM has demanded that the government legally guarantee the ₹3,243 MSP for paddy for 2026-27 and ensure procurement.

Mr. Krishnaprasad said the price gap was pushing farmers to depend on private traders and intermediaries. He accused the government of failing to implement the C2+50% formula and demanded an end to what he described as the exploitation of paddy farmers.

At 1,000 locations

The SKM, a coalition of more than 400 farmers’ organisations, has announced nationwide protests from Monday. The agitation will include “Jail Bharo” programmes and road and rail blockades at more than 1,000 locations across the country.

The protests will seek a legal guarantee for MSP based on the C2+50% formula for paddy and other major crops.

Published - August 09, 2026 08:07 pm IST