Will raising minimum support price necessarily lead to higher inflation? (Business Standard)

The Business Standard published an article evaluating the scope of the impact of increasing minimum support prices (MSP) on food prices in India. The article cites IFPRI’s South Asia Director, P.K. Joshi, who advised that increased MSP will have an inflationary impact on some crops. He added, “In wheat and rice, the public distribution system would support any inflationary impact, while in others imports can be an option and domestic supplies are also good enough.”