How a sharp hike in MSP may hurt export worthiness of Indian farm goods

Indian cotton and paddy could see their competitiveness in international markets take a hit

As the Centre looks to increase the minimum support price (MSP) of major Kharif crops for the 2018-19 season, one big question is the impact that this will have on the export competitiveness of crops such as paddy and cotton -- which of late have seen a surge in demand due to favourable global factors.  

Going forward, most experts and market watchers feel that while there might not be a big dent in exports or export competitiveness of Indian cotton and paddy immediately, these products might become noncompetitive if prices in the international markets fall from their current levels.