High MSPs could raise food prices, fear experts; some analysts say there will be marginal, crop-intensive impact
Consumers might have bear a portion of Centre's proposed move to guarantee a Minimum Support Price (MSP) which would be 50 per cent more than the cost through higher prices in the fast moving consumer goods (FMCG) space, S Sivakumar, group head, Agri-business and IT of one of India's largest agribusiness player, ITC Ltd said. He said while companies might absorb a part of the additional cost, once revised MSPs are in effect, they would also have to pass on some of the extra burden to the consumers."Higher farmers' income as a national priority is good and need of the hour but it will definitely mean higher consumer prices. And how much higher will those prices be will depend upon the market dynamics and how perfect they are," Sivakumar said. Sivakumar who regularly advised government and others on range of policy issues related to agriculture and food sector said that in the immediate consumer prices of wheat and pulses could be impacted and pushed up due to Centre's decision to ...
Even by conservative estimates, the MSP of raw jute could touch Rs 45000 per tonne. The pricing estimate is after taking into account all operational costs, inputs and family labour
MSPs for many crops are already higher than 1.5 times the paid-out costs and the estimated value of family labour
"Current MSP for various crops barely provides any returns to farmer," Yechury said
CCEA has approved Rs 100 per quintal hike in wheat MSP to Rs 1,625 per quintal for the 2016-17 rabi crop against Rs 1,525 per quintal last year
The government had fixed the MSP of common variety paddy at Rs 1,410 for 2015-16 kharif (summer) season