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

A+| A| A-

Minimum Support Price Hike


The central government has announced a fresh increase in the minimum support price (MSP) for kharif crops, making the new MSP 50% higher than the actual paid-out costs of production plus the imputed value of family labour (excluding the cost of the land). This has created a wave of dissatisfaction among political parties and farmer organisations like the All India Kisan Sabha, which claim that the rise in MSP is insuffi­cient and a mere façade as the government has ignored the recommendation regarding calculation of the cost of production as given by the M S Swaminathan Committee.

A fair judgment of the government’s decision can be made only by considering the current upsurge in the consumer price index (CPI) inflation alongside MSP rise; otherwise, it would be a disservice to the complex nature of macroeconomics. The trend of the CPI inflation is quite worrying. According to the Central Statistics Office (CSO), it has increased from a meagre 1.46% in June 2017 to 4.87% in May 2018.

Dear Reader,

To continue reading, become a subscriber.

Explore our attractive subscription offers.

Click here


To gain instant access to this article (download).

Pay INR 50.00

(Readers in India)

Pay $ 6.00

(Readers outside India)

Updated On : 17th Aug, 2018
Back to Top