Macro@Moneycontrol | Could MSP hike have been timed better?

Less than a year ahead of the 2019 general elections, the Cabinet has approved the proposal to hike minimum support price (MSP) for all kharif crops by 1.5 times of the input cost for the 2018-19 season, a move that is expected to boost farmers’ income.

MSP is a price at which the government buys crops from the farmers, irrespective of its price, to protect agriculture producers from sharp fall in farm prices.

This is the steepest hike since 2012-13, when the increase was 15.7%.

So how does the move impact the economy and common man’s budget? Watch the accompanying video for answers