Support prices, input subsidies and misallocation in Indian agriculture

Investigates the implications of agricultural price support programmes.

• From: Foreign, Commonwealth & Development Office
• Published: 31 October 2025

• Country: India
• Document Type: Briefing
• Theme: Agriculture and Economic Growth
• First published: 17 June 2025
• Authors: Chakraborty, P., Chopra, A. and Contractor, L.

Abstract

This paper investigates the implications of agricultural price support programmes (MSP), which offer a minimum price to farmers of certain staple crops, and farm input price subsidies, for consumer welfare and misallocation, measured as the productivity gap between agriculture and non-agriculture.

This is an part of the Structural Transformation and Economic Growth (STEG) programme.

Citation

Pubali C and others. ‘Support prices, input subsidies and misallocation in Indian agriculture’ STEG Project Policy Brief, 2025

Links

Support prices, input subsidies and misallocation in Indian agriculture

Published 31 October 2025