Paddy politics
The government raised the procurement price for paddy last week, from Rs 645 per quintal for common varieties to Rs 850 per quintal. Under normal circumstances, this would have been seen as a pretty substantial increase, being almost 32 per cent, but it turned out to be less than the 55 per cent increase that the Commission of Agricultural Costs and Prices had recommended, taking the proposed price to Rs 1,000 per quintal. From a strictly economic perspective, the government's decision to split the difference does have significant merits.
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