Increase in Minimum Support Prices (MSP) Under Which Administration Showed the Highest Growth Rate?

In a recent press statement, former Prime Minister Dr. Manmohan Singh highlighted the growth rate of the Minimum Support Price (MSP) under the two major Indian governments - the United Progressive Alliance (UPA) II and the National Democratic Alliance (NDA). However, a closer look at the data reveals that the difference in MSP growth rates between the two periods is not as significant as claimed.

This analysis is part of a larger series examining the four-year tenure of the Modi government, supported by a flash grant from the International Fact Checking Network (IFCN). Data for this study was collated from various sources, including the Reserve Bank of India's (RBI) website and the Directorate of Economics and Statistics, Department of Agriculture's website.

The average MSP growth for each crop was calculated for every year under both the UPA II and NDA governments. The aggregate average growth of the MSP (all crops) during the UPA II rule was found to be 11.28%, while that under the NDA government has been 4.91%.

The difference between the average annual MSP growth rate during UPA II and NDA was 6.48 percentage points, not 15.7 percentage points as claimed by Dr. Singh. It is important to note that this difference varies for individual crops. For instance, the difference between the growth of MSP in the case of Sugarcane was 15 percentage points, but for gram, the average annual MSP growth rate during UPA I was not higher than that of UPA II.

Interestingly, under the UPA I rule, the average annual MSP growth rate for seven food crops was found to be higher than during the current NDA rule. However, for five crops, the average annual MSP growth rate during UPA I was higher than during UPA II.

It's worth mentioning that there are no search results specifically comparing Indian governments with regard to the average growth rate of the minimum sale price during their terms. However, India has experienced high economic growth rates under recent governments, with growth rates of around 7-8% in recent years and strong expansion in various sectors. Yet, no direct data on minimum sale price growth by administration is found in the results.

As we continue to examine the economic performance of the Modi government, it's crucial to approach such claims with a critical eye and verify the data. You can read the rest of the stories in this series here.

Increase in Minimum Support Prices (MSP) Under Which Administration Showed the Highest Growth Rate?