India raises crop prices as Modi woos farmers ahead of election

India on Wednesday raised the government-mandated price for summer-sown crops such as rice and cotton by the most in five years as Prime Minister Narendra Modi looks to woo millions of farmers ahead of a general election next year. The country announces support prices for more than a dozen crops each year to set a benchmark. But analysts say the bigger than usual hike could hit government finances and stoke inflation. India has raised the price at which it will buy new-season common rice paddy from farmers by 7% to 2,183 rupees ($26.45) per 100 kg, trade minister Piyush Goyal told reporters after a cabinet meeting chaired by Modi. The government is keen to boost rice output after it banned exports of broken rice in September and imposed a 20% tax on exports of various grades to calm domestic prices, which had surged after below-average rainfall limited planting. This year, government sources told that the ban on broken rice exports and a 20% tax on overseas shipments of white rice ...