Has the government hiked the MPS on Kharif crops for this season? What could be the implications?

As expected, the government hiked the minimum support price (MSP) on a slew of Kharif crops just ahead of the Kharif cropping season. The average price hike was around 50% for most of the summer crops. It may be recollected that in the Union Budget 2017, the Finance Minister had announced that MSP would be set at a premium to the cost of cultivation. This ensured that farmers got a profitable price for their produce. The announcement of the MSP hike has been timed with the onset of the monsoons and the IMD estimates pegging monsoons at 102% of long period average (LPA). This move will be positive for ensuring normal Kharif output and keeping food inflation under check during the year.