Expensive grains, full granaries

On Thursday, the cabinet committee on economic affairs (CCEA) increased the minimum support price (MSP) for paddy by Rs. 170—roughly 16%—for the current kharif—season. This is the sharpest rise in the past four years and given the mountain of grains the government has accumulated, there are no pressing economic grounds for the step. If anything, a higher MSP will only add to the government’s fiscal burden.

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