Farmers Movement: What is MS Swaminathan's C2+50% formula?

Published on: 21-Feb-2024

The Government of India recently honored the great agricultural scientist M.S. Swaminathan posthumously with the Bharat Ratna for his contribution to the cause of farmers. Today, farmers demanding MSP law for crops are demanding payment of the MSP amount under MS Swaminathan's C2+50% formula.

Farmers from across the country are marching to Delhi in support of 12 demands, including making a law to guarantee purchase at the minimum support price. The borders have been sealed at many places for farmers. This is not the first time that farmers have taken to the streets. Farmers have always been raising their demands through agitation. Farmers are demanding the implementation of the recommendations made by the MS Swaminathan Commission on MSP. Let us know about the Swaminathan Commission and its recommendations.

The National Commission on Farmers was a commission formed in November 2004.

A commission was formed under the chairmanship of famous agricultural scientist MS Swaminathan in November 2004 to study the problems of farmers. It was called 'The National Commission on Farmers’. From December 2004 to October 2006, this committee submitted six reports to the government. Many recommendations were made in these.

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Swaminathan Commission in its recommendation had recommended giving 50 percent more of the crop cost to the farmers to increase their income. This is called the C2+50% formula. The agitating farmers are demanding the implementation of the MSP Guarantee Act based on this formula.

What is Swaminathan's C2+50% formula?

It is known that to calculate this formula, the Swaminathan Commission divided the cost of the crop into three parts i.e. A2, A2+FL, and C2. A2 costs include all cash expenses incurred in producing the crop. In this, all the costs ranging from fertilizer, seeds, water, and chemicals to labor, etc. are included. 

In the A2+FL category, along with the total crop cost, the estimated cost of labor of the farmer family is also included. Whereas in C2, apart from cash and non-cash costs, lease rent of land and interest on related things are also included. Swaminathan Commission had recommended giving MSP by adding one and a half times the cost of C2 i.e. 50 percent of the cost of C2. Now farmers are demanding to give them MSP under this formula. However, at present there does not seem to be any solution to this issue between the government and the farmers.