Paddy price puzzle
Last week the government, in an ad hoc decision, raised the minimum support price (MSP) for paddy from Rs.745 to Rs.850 per quintal for most common varieties. On the face of it, a 14 per cent hike might seem good enough, neither disheartening the farmers nor hurting the consumers. However, for a variety of reasons, the decision has drawn flak. The Commission of Agriculture Costs and Prices (CACP) has recommended an MSP of Rs.1,000.