MSP hike is justified but may contribute to food inflation: Experts

The Cabinet Committee on Economic Affairs has approved an increase of 15-53 per cent in the minimum support price (MSP) of kharif or summer crops for 2012-13 (October-September) to encourage farmers to plant more. On NDTV Profit, Professor S Mahendra Dev, Director, Indira Gandhi Institute of Development Research and PG Chengappa, National Professor, discuss this issue. “A hike in MSP by the government is justified,” said Dev. Chengappa, however, said that this hike will contribute to food inflation. “MSP is not remunerative enough for farmers,” he added.