Higher MSP, long-term agri credit, key demands of farm unions from upcoming Budget

Farm Unions have sought implementation of Swaminathan Commission report on MSP.

Higher minimum support price (MSP), cheap and long-term agriculture credit, strengthening of farm value chains are some of the key expectation of farm unions from the upcoming Union Budget for FY27.

Several farm unions, including the Bhartiya Kisan Union (Arajnaitik) and the Peasant Welfare Association, submitted their recommendations for the upcoming Budget to the agriculture ministry on Tuesday.

The unions are seeking a long-term agriculture policy to ensure stability, long-term planning, and growth in farmers' income. They urge the government to implement a clear and binding "Five-Year Agriculture Policy," fixing targets for production, pricing, marketing, export, irrigation, and technical development and implementing them permanently for five years.

The unions also urge the government to provide cheap and long-term agricultural credit with minimum interest rates, a long repayment period, and a clear provision for loan restructuring and interest waiver in case of natural calamities or crop damage. "Establish a Farm Loan Security Corporation—farmers' loan defaults should go into a government risk pool," BKU’s National Spokesperson Dharmendra Malik said.

Farm Unions have further sought implementation of Minimum Support Price (MSP) at one and a half times the C2 cost (C2 + 50%), as per the recommendations of the Swaminathan Commission, so that farmers receive a fair and just price for their produce.

At present, MSP is provided at 1.5 times the cost of production, but the unions want the MSP to include rental value of owned land and interest forgone on fixed capital assets (like machinery) as well.

To provide greater benefits to farmers from production to marketing and promote value addition of agricultural products, the unions are asking the government to make special provisions in the Budget to strengthen the agricultural value chain. This includes providing financial assistance and grants for farm-level grading-sorting units, cold-storage chains, processing units, farmgate markets, agricultural logistics,  and FPOs, so that farmers receive better prices for their produce and the agricultural economy is strengthened.