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Modi govt hikes MSP, but lack of funds, storage space may limit benefits

During election campaigning in 2014, Modi promised steep hikes in MSPs and the doubling of farmers' income soon after becoming prime minister

Reuters  |  Mumbai/New Delhi 

Prime Minister Narendra Modi's pre-election gambit to sharply hike state-mandated prices for summer crops, including rice, may mean little to millions of farmers, as the government lacks the storage and funds needed to buy most of the produce. The median increase in the so-called minimum support prices (MSPs) approved by the government on Wednesday was 25 per cent, compared with 3-4 per cent in the first four years in office for Modi, whose bid for a second term next year is expected to be much tougher than his landslide victory in 2014. The government announces MSPs for most ...

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First Published: Thu, July 05 2018. 13:04 IST