India: Govt Procurement Will Determine Impact of MSP On Inflation

13 July 2018: The impact of the recent increase in Minimum Support Price (MSP) on inflation would largely depend upon how the procurement will happen, noted the State Bank Of India in a latest update. Recently, Government hiked the minimum support price (MSP) of 14 Kharif (summer sown) crops by at least 1.5 times of the cost of production to address farmer’s distress in India.