Hefty MSP hike promises in poll-bound states could spell trouble in future

Hikes in wheat and paddy MSP in key states that contribute a significant amount to central pool would also mean that the Centre might find it difficult not to replicate the same increases nationally

In the era of competitive populism, both Bhartiya Janata Party (BJP) and Congress have taken it to the next level in the forthcoming state elections to three north Indian states of Madhya Pradesh, Rajasthan and Chhattisgarh.

Apart from other sops, it is perhaps the massive hikes in minimum support price (MSP) that stand out in terms of their fiscal and financial impact on the exchequer, particularly when it is seen against the extension of the free food grains distribution scheme for the next five years.

The hikes in wheat and paddy MSP in the key states that contribute a significant