000			01252pab a2200193 454500
008			180718b2003 xxu||||| |||| 00| 0 eng d
100			_aParikh, Kirit
245			_aGrowth and welfare consequences of rise in MSP
260			_c2003
300			_ap.891-95.
362			_a1 Mar
520			_aThis note summarises the results of a recently completed study that examined the consequences of increasing the minimum support price (MSP) of wheat and rice by 10 per cent, with an applied general equilibrium model of India with 65 sectors, and five rural and five urban expenditure classes. The results show that an increase in the MSP of wheat and rice leads to decline in overall GDP, increase in aggregate price index and reduction in investments. Even the increase in agricultural GDP resulting from higher MSP dwindles rapidly and only a minuscule positive impact on agricultural GDP remains by the third year. More importantly, in terms of welfare the bottom 80 per cent of the rural and all of urban population are worse off. - Reproduced.
650			_aAgricultural prices - India
650			_aAgricultural prices
700			_aDarbha, Gangadhar
700			_aGanesh-Kumar, A.
773			_aEconomic and Political Weekly
909			_a55714
999			_c55714 _d55714