India raises crop prices as Modi government woos farmers ahead of 2024 election
Indian commerce and trade minister Piyush Goyal has told media the government has raised the price at which it will buy new-season common rice paddy from the farmers by 7%.
Representational Image (iStock)
India on Wednesday (7) increased the government-mandated price for crops that are sown in summer, such as rice and cotton, by the most in five years as prime minister Narendra Modi eyes farmers ahead of next year’s general election.
While the South Asian nation announces support prices for more than a dozen crops each year to set a benchmark, analysts point out that a bigger than usual increase could hurt the government’s finances and stoke inflation, a Reuters report said.
Indian commerce and trade minister Piyush Goyal has told media after a cabinet meeting chaired by Modi that the government has raised the price at which it will buy new-season common rice paddy from the farmers by seven per cent to Rs 2,183 per 100 kilograms.
The government wants to increase rice output after it put a ban on exports of broken rice in September and imposed a 20 per cent tax on exports of various grades to calm domestic prices that went up following below-average rainfall limited planting, the report added.
Government sources told Reuters this year that the ban on broken rice exports and a 20 per cent tax on overseas shipments of white rice would be in place as the world’s largest exporter of the grain aims to control the prices.