Farmers harvest turmeric in a field, in Sangli, Maharashtra, February 16, 2026.
Maharashtra’s farms cover nearly 165 lakh hectares, about 54 per cent of the state’s land. Yet only 19 per cent of this land has assured irrigation. The rest depends largely on the monsoon, leaving farmers highly vulnerable to erratic rainfall. With an average landholding of just 1.34 hectares, even a small dry spell can turn a season’s hard work into a financial struggle.
Rising costs, pressing challenges
The cost of farming is rising steadily. For 2026–27, machinery rentals for ploughing and harvesting are expected to climb nearly 20 per cent. Fertiliser prices, particularly for DAP and MOP, have soared to ₹27,000 and ₹34,000 per tonne. Even with urea prices stable due to subsidies, these inputs place heavy burdens on farmers and drive rural debt.
At the same time, labour costs and other basic expenses continue to grow. The result is a widening gap between what it costs to grow crops and the returns farmers actually receive.
Natural farming: A path to reduce costs
Maharashtra’s promotion of Natural Farming offers a practical solution. By shifting even a portion of farmland to chemical-free practices, farmers can rely more on local resources and less on expensive, imported fertilisers. This reduces the cost of cultivation and helps protect farmers from global price shocks.
For rainfed areas, where irrigation is limited, such approaches not only lower costs but also improve soil health and resilience, giving farmers a better chance to sustain their livelihoods.
Rethinking how costs are calculated
A key debate is how cultivation costs are defined. The national MSP is based on A2+FL, which covers paid-out expenses and family labour. While the framework developed by the Commission for Agricultural Costs and Prices has helped support farmers, state-level evidence shows that a broader perspective is needed in regions like Maharashtra.
The C3 framework goes further. It includes land rental value, interest on farmer-owned capital, supervision, and a fair profit margin, in addition to standard costs. This gives a more complete picture of what it truly costs to farm.
When looked at this way, the gap is striking. For 2025–26, the recommended price for paddy is around ₹4,783 per quintal, while the central MSP is only ₹2,369. For crops like Pearl Millet (Bajra), the recommended state price is also far above the national MSP. These differences matter—they are real money that farmers need to stay in business.
Evidence from the field
These recommendations are grounded in data. Four agricultural universities in Maharashtra—Mahatma Phule Krishi Vidyapeeth (Rahuri), Vasantrao Naik Marathwada Krishi Vidyapeeth (Parbhani), Dr. Panjabrao Deshmukh Krishi Vidyapeeth (Akola), and Dr Balasaheb Sawant Konkan Krishi Vidyapeeth (Dapoli)—track costs and practices of nearly 2,800 farmers across the state. This field-level evidence ensures recommendations are practical and realistic.
Way forward
Strengthening MSP is not just about raising numbers; it’s about aligning policy with reality. Updating cost calculations, considering regional differences, and supporting low-cost, sustainable practices like natural farming can make a real difference.
For Maharashtra’s farmers, the goal is simple: the price they receive for their crops should reflect what it actually costs to grow them. Aligning MSP with the real cost of farming is a crucial step toward building a resilient, fair, and sustainable agricultural system.
(The writer is adviser, Viksit Maharashtra, Chief Minister Office, Maharashtra)
Published on March 28, 2026