NEW DELHI: As a pre-Diwali bonanza, the Centre on Wednesday chose to hike Minimum Support Price (MSP) for key rabi crops for the year 2025-'26 market season.
If that is for the farmers, the Centre also decided to hike the Dearness Allowance (DA)/Dearness Relief (DR) by 3 percent for central government employees and pensioners. This would cost the government a sum of Rs 9,448 crore.
In another decision the Union Cabinet gave its nod for constructing a new rail-road bridge on the river Ganga in Varanasi with an outlay of Rs 2,642 crore.
Briefing media after the meeting of the Union Cabinet, chaired by Prime Minister Narendra Modi, Information & Broadcasting Minister Ashwini Vaishnaw said, the new MSP rates aim to ensure farmers receive a fair value for their harvests.
Vaishnaw said, the MSP for wheat was raised by Rs 150 per quintal, moving from Rs 2,275 to Rs 2,425. Mustard saw an increase of Rs 300 per quintal, bringing its MSP to Rs 5,950, while the MSP for gram rose by Rs 210 to Rs 5,650 per quintal.
The Minister informed that the highest MSP hike was given to Rapeseed and Mustard, with a rise of Rs 300 per quintal (from Rs 5,650 to Rs 5,950), followed by Lentil (Masur), which saw an increase of Rs 275 per quintal (from Rs 6,425 to Rs 6,700).
“The biggest factor is that the prices should be at least 50 percent above the cost, on that basis, the cost of six Rabi crops has been decided on the basis of projections of CACP (Commission for Agricultural Costs and Prices),” the Minister said.
The MSP acts as a safety net for farmers, ensuring they are shielded from abrupt price drops. It plays a crucial role in maintaining food security and serves as a reference for market price discovery. By providing financial stability, the system encourages better agricultural production.
Meanwhile, with the 3 percent hike, the DA/DR is now increased to 53 per cent, Vaishnaw said, adding that this change was expected to benefit over a crore central government employees and pensioners, with employees also likely to receive arrears, as it will be implemented from July 1, 2024.
The DA is a percentage of employees’ basic salary designed to help mitigate the effects of inflation on their living expenses. The allowance is typically revised every six months (March 1 and July 1) every year to reflect fluctuations in the cost of living index.
Infra Boost
The new rail and road bridge on Ganga, which was approved by the Cabinet today, would consist of four rail lines and six lane highway, Vaishnaw said, adding that the project would require an investment of Rs 2,642 crore and the government expects this route to help save diesel imports of about 8 crore litre per year.
“The project will help improve capacity, efficiency and support the region’s socio-economic growth. Apart from relief in congestion in the stretch, 27.83 MTPA freight is anticipated on the proposed stretch,” the Minister said.
The project covering two districts – Varanasi and Pandit Deen Dayal Upadhyaya Nagar (Earlier known as Mughalsarai) in Uttar Pradesh will increase the existing network of Indian Railways by about 30 Kms.
Currently, the 137-year-old Malviya Bridge at Kashi is connecting the Northern, Eastern and Western states. The two-line rail and two-lane roads bridge between Varanasi and Deen Dayal Upadhyaya Nagar is oversaturated and there is a need for a replacement and reduced congestion, the Minister said.