Price of paddy populism

The Commission for Agricultural Costs and Prices (CACP) has recommended a 16 per cent increase in the procurement price for paddy, and more than double this increase for several pulses. An important part of food inflation, and therefore overall inflation, is the government policy of setting prices for the two important food crops, paddy (rice) and wheat. In this regard, it is important to dissect the recommendation for the price increase suggested for paddy; whether the price increases for pulses are justified is left for another occasion.

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