While ensuring better Crop MSPs to farmers may stoke inflation, NITI Aayog estimated that farmer incomes will rise by an impressive 24%, helping the centre’s goal of doubling farm incomes by 2022. Transmission of this increase to wholesale and retail levels will have very strong implications for inflation and consumers,” the NITI Aayog document titled Ensuring MSP benefits for farmers said. Graphic: Paras Jain/MintWhile ensuring better MSPs to farmers may stoke inflation, NITI Aayog estimated that farm incomes will rise by an impressive 24%, helping the centre’s goal of doubling farm incomes by 2022. “Even it only wants to aid farmers, it will need more than Rs40,000 crore (as per NITI Aayog estimates) upfront, for which there is no budgetary provision,” he added. Following a meeting with states and the agriculture ministry on 9 March, NITI Aayog said three models are being proposed to the government to ensure MSP to farmers.

Source: Mint March 29, 2018 18:00 UTC