ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Minimum Support Price and Inflation in India

The Monetary Policy Committee of the Reserve Bank of India revised the policy rates upward consecutively for the second time in 2018. While revising the repo rates to 6.5%, the MPC placed the onus on the recently announced minimum support price for agricultural commodities, alleging that it might fi rm up rural demand and drive up the price level in the economy. But is this threat of price spiral due to MSP hike a reality?
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