India’s CAD — quantum by which imports exceed exports — grew to $23.9 billion in April-June quarter, the latest data available. Lentils see highest MSP hike of Rs 500 per quintal.
The Union Cabinet’s decision Tuesday to increase the Minimum Support Price (MSP) for a range of Rabi crops is likely aimed at slowing the rapid growth in India’s Current Account Deficit (CAD) by incentivising domestic producers, according to economists.
The Cabinet Committee on Economic Affairs approved the increase in MSP for all mandated Rabi crops for the marketing season 2023-24. The highest increase, of Rs 500 per quintal, was provided for lentils (Masur), followed by a Rs 400 per quintal increase for rapeseed and mustard. The MSP for safflower was increased by Rs 209 per quintal, and for wheat, barley, and gram by Rs 110, Rs 100, and Rs 105 per quintal, respectively.
TCA Sharad Raghavan 