InvestorQ : Has the government hiked the MPS on Kharif crops for this season? What could be the implications?
Deepa Salunkhe made post

Has the government hiked the MPS on Kharif crops for this season? What could be the implications?

Answer
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Juvina Maggie answered.
3 months ago


As expected, the government hiked the minimum support price (MSP) on a slew of Kharif crops just ahead of the Kharif cropping season. The average price hike was around 50% for most of the summer crops. It may be recollected that in the Union Budget 2017, the Finance Minister had announced that MSP would be set at a premium to the cost of cultivation. This ensured that farmers got a profitable price for their produce. The announcement of the MSP hike has been timed with the onset of the monsoons and the IMD estimates pegging monsoons at 102% of long period average (LPA). This move will be positive for ensuring normal Kharif output and keeping food inflation under check during the year.