Will raising minimum support price necessarily lead to higher inflation?

High MSPs could raise food prices, fear experts; some analysts say there will be marginal, crop-intensive impact

To what extent will the government’s efforts to increase minimum support prices (MSPs) and spread their benefits translate into food inflation? And if they do, which are the crops that will be instrumental in pushing the price level up?

From the NITI Aayog to industry leaders to the Reserve Bank of India (RBI), all are apprehensive that any major increase in MSP, following the 2018-19 Budget announcements, would push up prices, if not immediately, in the next six to eight months after the decision is taken.

The RBI, in its monetary policy, has said the revised formula for MSP might have an