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October Inflation data shows MSP hikes aren't working yet

October Inflation data shows MSP hikes aren't working yet

Tuesday, November 13, 2018, 8:46 AM

The government's widely publicized announcement of fixing minimum support prices (MSPs) at 50% over the cost of production of crops has not worked yet, indicates inflation data for October. Cast your eyes on the above chart, which shows the year-on-year inflation for food items. The deflation in the agricultural sector is a sign of continuing farmer distress.
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