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Hike in minimum support price (MSP)
July 14 , 2018
2352 days
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- The Centre gave approval for an increase in minimum support price (MSP) for 14 kharif crops with a price hike ranging from 4 to 53 percent.
- To define input cost, the standard A2+FL was considered, which means actual cost plus imputed value of family labour in the production of a crop.
- A total of 26 crops are covered under MSP (fair remunerative price in the case of sugarcane).
- This includes:
- copra, de-husked coconut, raw cotton, raw jute, sugarcane and Virginia flue cured tobacco.
| 7 cereals | 5 pulses | 8 oilseeds |
| paddy | gram | groundnut |
| jowar | arhar/tur | rapeseed/mustard |
| wheat | moong | toria |
| barley | urad | soyabean |
| bajra | lentil | sunflower seed |
| maize | safflower seed and niger seed | |
| ragi | sesamum |
- Government's decision to hike MSP for kharif crops is expected to impact GDP by 0.1-0.2 per cent besides adding to inflationary pressures.
- Economists expect the food inflation to increase by 50-90bps by FY19E.
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