Continuous MSP hike, oversupply in world market dent India's farm exports

At a time when global agricultural commodity prices have been on the decline due to oversupply, the sustained increase in the minimum support price (MSP) by the Indian government has over-priced the country's agricultural commodities in the world market, reducing India’s competitiveness in farm exports. Between FY13 and FY19, the government of India raised MSP of various agricultural commodities by 40-70 per cent.

Going by World Bank's latest commodity outlook which states that global farm prices are expected to remain weak for some more time, exporters of agro commodities have no respite in near future. RCEP-type agreements will only dampen