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LATEST NEWS UPDATES | Will the government’s MSP calculations hold? -Roshan Kishore

Will the government’s MSP calculations hold? -Roshan Kishore

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published Published on Oct 19, 2022   modified Modified on Oct 24, 2022

-Hindustan Times

There is good reason to ask whether the latest MSP hike will be enough to meet the government’s requirements. Open market prices of wheat are quite high and the government has already eaten into its excess stocks.

The Union Cabinet announced the minimum support price (MSP) for wheat and other Rabi (winter) crops for the 2023-24 Rabi Marketing Season (RMS) on Tuesday. For wheat, the most important Rabi crop from the viewpoint of procurement, the MSP has been increased from 2015 per quintal (100 kg) to 2125, an increase of 5.5%. The latest hike in MSP for wheat is higher than what it was last year when it was increased by just 2%. In fact, the latest hike in wheat MSP is the highest since the 6.1% increase in the 2019-20 RMS (it was announced in 2018, the year before the 2019 elections). However, there is good reason to ask whether the latest MSP hike will be enough to meet the government’s requirements. Open market prices of wheat are quite high and the government has already eaten into its excess stocks. Here are three charts which explain this in detail.

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Hindustan Times, 19 October, 2022, https://www.hindustantimes.com/india-news/will-the-government-s-msp-calculations-hold-101666114793681.html


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