SC panel flags alarming farm crisis, seeks talks on MSP law
“We are all working for a cause. Let this matter be not taken adversely by anyone,” remarked the bench, which had formed the committee on September 2.
India’s agrarian economy stands at a crossroads, battling rising indebtedness, shrinking incomes and an intensifying climate crisis, the Supreme Court-appointed committee formed to address demands of farmers protesting along the Punjab-Haryana border since February, has emphasised while recommending serious consideration of the farmers’ demand for legal sanctity to the minimum support price (MSP) for crops.

The committee, chaired by justice (retd) Nawab Singh, on Friday submitted its report outlining key challenges faced by India’s rural and agrarian sectors, which it described as grappling with an “emerging socio-economic crisis”.
The report, accessed by HT, was presented before a bench of justices Surya Kant and Ujjal Bhuyan on Friday. The bench, while acknowledging the gravity of the issues, underscored the collective responsibility of all stakeholders to resolve the issue. “We are all working for a cause. Let this matter be not taken adversely by anyone,” remarked the bench, which had on September 2 formed the committee.
Read more: Govt should fix MSP for stubble and buy it from farmers: Hooda
Punjab’s advocate general Gurminder Singh informed the court that farmers were initially sceptical of the committee’s ability to implement substantial changes. He added that one of the protesting farmers’ organisation, Samyukta Kisan Morcha (Non-Political), joined the committee proceedings on November 4 while the state government made all efforts to persuade the farmers to assist the court-appointed panel.
However, solicitor general Tushar Mehta, representing the Centre and the Haryana government, urged that farmers and their organisations present their concerns directly to the court, adding it was not proper for any of the state governments (Punjab or Haryana) to speak on the behalf of the farmers.
The bench adjourned the hearing for two weeks to allow all stakeholders to review the report and submit their recommendations.
The committee shone a harsh light on the conditions in the countryside, where average daily farm income stands at a paltry ₹27, and debt burdens continue to drive farmers and farm workers into despair. Over four lakh farmer suicides have been recorded in India since 1995, a phenomenon the report attributed primarily to rising indebtedness and shrinking profitability in agriculture.
The Green Revolution of the mid-20th century brought initial prosperity but left behind a legacy of stagnation in yields, unsustainable cropping patterns and environmental degradation. According to the report, institutional debt in Punjab and Haryana stands at ₹73,673 crore and ₹76,630 crore, respectively, with non-institutional debt further exacerbating the burden.
While farming employs 46% of the country’s workforce, it contributes a mere 15% to the national income, reflecting a systemic crisis of disguised unemployment and poor returns. The gap between rising production costs and stagnant farm incomes, the report stated, has left small and marginal farmers, who form the majority, particularly vulnerable.
Citing climate change, the report said that climate has also emerged as a formidable adversary, with erratic rainfall, heatwaves and depleting water tables creating challenges for food security and farm sustainability.
The report also highlighted the compounding issue of crop residue management, with stubble burning contributing to environmental pollution and public health crises. These challenges, it warns, could escalate without urgent policy interventions.
Central to the farmers’ demands is the legal sanctity of MSP, a mechanism that guarantees minimum prices for agricultural produce. Addressing this, the report advocated evaluating the legal guarantee for MSP to restore confidence in the farming community.
Thus, one of the issues that the panel seeks to delve into, is: “To examine the profitability of farm sector through the mechanism of assuring remunerative prices that includes inter alia minimum support price (MSP), direct income support and other viable approaches. The committee will also examine the demand of farmers for providing legal sanctity to MSP.”
The plight of farm workers and marginalised rural communities also found particular mention in the report, which notes that a significant proportion of rural laborers live below the poverty line. “As a matter of fact, rural society as a whole is under severe economic stress,” it lamented.
It highlighted the need for comprehensive solutions, including crop diversification, environment-friendly farming and strengthened institutional frameworks to address the multiple crises enveloping the rural economy.
“The committee understands that there is a need to have a comprehensive study of the emerging socio-economic crisis in the agrarian and rural economy at the national level as it is bound to have long term implications for the politico-economic stability,” read the report.
It also added that the committee strives to recommend appropriate policy measures “to ensure that farmers do not have to sit on protest every now and then.”
The committee’s formation followed protests by farmers who, since February, have been blocking highways along the Punjab-Haryana border to demand solutions to their long-standing grievances, including MSP legalisation. One such protest, at Khanauri in February, turned deadly when clashes between farmers and Haryana security forces left 21-year-old Shubhkaran Singh dead.
The Haryana government’s appeal against a Punjab and Haryana high court directive to investigate Singh’s death brought the issue to the Supreme Court’s doorstep.