Lok Sabha polls 2019: Drop in crop prices can wilt Modi's re-election bid

The absence of government support has also kept food prices low, a key reason why India's inflation has slowed sharply below the 4 percent midpoint of the central bank's inflation target

India’s price support system for a range of crops is failing its most crucial test: shielding farmers from distress sales.

That’s brewing discontent in the nation’s hinterland and is capable of tripping Prime Minister Narendra Modi’s re-election bid.

Prices of crops such as cereals, oilseeds and pulses are hovering below the government-set levels in various grain markets across the country. Pearl millet is trading about 24 percent below the government’s support price, while corn, one of the major monsoon-sown crops, is quoted about 7 percent lower, according to prices quoted by some farmers.

While bumper harvests after a third year