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MSP hikes isn't the only tool to incentivise farming

Policy on price and procurement support should not encourage more production of abundant crops

As the government battles to keep food inflation within manageable limits, the Economic Survey has advocated the use of tools other than the existing price support mechanism to incentivise farming in the medium term. It also said the policy on price and procurement support should be so calibrated as to not encourage more production of crops that were abundantly available. India's wheat and rice production has reached record highs in the last few years because of a steady increase in the minimum support price (MSP). But the high production has put enormous pressure on the ...