Overview
The Supreme Court on 13 April 2026 issued a notice in a public interest litigation (PIL) that asks the Union Government to fix the MSP at least on the basis of the actual cost of cultivation, known as C2. The petition, filed under Article 32, was moved by three Maharashtra farmers seeking relief for the distress caused by the prevailing MSP methodology.
Key Developments
- Bench comprising Chief Justice of India Surya Kant and Justice Joymalya Bagchi heard arguments from Advocate Prashant Bhushan on the need to align MSP with the true cost of production.
- The petitioners argue that the current MSP formula, based largely on A2+FL multiplied by 1.5, excludes land and capital costs, leading to prices below the farmer's actual outlay.
- Data cited in the petition indicate over 17,000 farmer suicides in Maharashtra alone in the last five years, underscoring the urgency of the issue.
- The Court noted practical difficulties in assessing land‑value and interest components, which vary across states.
- Justice Bagchi warned that the relief sought could amount to a re‑writing of economic policy, prompting a careful balancing of judicial intervention and fiscal prudence.
Important Facts
The petition defines procurement at MSP as significant only for wheat and rice, while most other crops remain unprocured even at declared MSP levels. It also highlights that the subsidised distribution of wheat and rice under the Food Security