Maximising the minimum: A look at MSP promises in poll-bound states

Ensuring central procurement of surplus grains purchased by announcing hefty bonuses over the MSP is tricky

This election season has seen political parties take interesting positions through their promises, one of the more novel ones being the promise of an Indian Premier League team for Madhya Pradesh. However, once you look beyond the novelty, the promise of substantial rise in the minimum support price (MSP) stands out, particularly when seen against the extension of the free food grain programme by five years.

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