Union Cabinet hikes MSP for 6 Rabi crops

The MSP for these crops has been raised by Rs 130-300 per quintal, reflecting a hike of 50-105 percent, according to the minister.

Vaishnaw outlined the increases, stating that wheat MSP has risen by Rs 150 per quintal, barley by Rs 130, gram by Rs 210, lentil by Rs 275, mustard by Rs 300, and sunflower by Rs 140 per quintal.

He further added, "MSP for wheat is 105 percent higher than the cost of production," highlighting that MSP for these six crops has been doubled over the last decade.

Between 2014 and 2024, the procurement value amounted to Rs 20.64 lakh crore, Vaishnaw noted.

A statement from the Press Information Bureau (PIB) explained that the MSP increase aligns with the Union Budget 2018-19’s commitment to set MSP at least 1.5 times the All-India weighted average cost of production.

The increased MSP is intended to ensure farmers receive fair prices and to promote crop diversification.

Vaishnaw also remarked on the moderation in inflation, stating that the MSP provides a safety net for farmers.

Image Credit: PIB

The Cabinet has also given the green light for a new rail-road bridge over the Ganges in Varanasi.

This bridge will feature four railway lines and a six-lane highway, with a projected investment of Rs 2,642 crore, Vaishnaw said.

The project, which will take four years to complete, will span the Varanasi and Chandauli districts in Uttar Pradesh.

According to a press statement, the multi-tracking project is expected to ease operations, reduce congestion, and bolster infrastructure on one of Indian Railways' busiest sections.

Vaishnaw added that the new bridge would save 8 crore litres of diesel annually, translating to Rs 638 crore in savings.

In another significant development, the Cabinet approved a 3 percent increase in the dearness allowance (DA) for government employees.

This hike, effective from July 1, will cost Rs 9,448 crore and benefit approximately 49.18 lakh central government employees and 64.89 lakh pensioners.

The MSP hike for Rabi crops and the DA increase come just weeks ahead of state elections in Maharashtra and Jharkhand. However, Vaishnaw clarified that these decisions are "not related to the upcoming elections in some states."