HDFC Mutual Fund

Cabinet approves 0.4%-8% increase in MSP for 14 major kharif crops, with paddy seeing a modest 3% hike for the second consecutive year. Surplus of rice stocks signals farmers to diversify into more remunerative crops like pulses and oilseeds. Concerns over heatwaves and below-normal monsoon may impact kharif crop, while regulated increase in paddy MSP to Rs 2441/quintal could affect farmers.