Ahead of Diwali, the Union Cabinet on October 16 approved the minimum support price (MSP) for six Rabi crops for the marketing season 2025-26, Union minister Ashwini Vaishnaw said in a press briefing.
MSP for six Rabi season crops increased in the range of Rs 130-300 per quintal, a hike of 50-105 percent, the minister said.
Vaishnaw said wheat MSP has been increased by Rs 150 per quintal, barley by Rs 130 per quintal, Gram by Rs 210 per quintal, Lentil by Rs 275 per quintal, mustard by Rs 300 per quintal and sunflower by Rs 140 per quintal.
"MSP for wheat is 105 percent higher than the cost of production," he said, adding that the MSP for 6 crops has been increased up to 2 times over the last 10 years.
The minister also highlighted that between 2014 and 2024, procurement value stood at Rs 20.64 lakh crore.
Track live updates from the Cabinet briefing here
"The increase in MSP for mandated Rabi crops for marketing season 2025-26 is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times of the All-India weighted average cost of production. This increased MSP of rabi crops will ensure remunerative prices to the farmers and incentivise crop diversification," a PIB statement said.
The minister further said that there is a "clear sense of moderation" in inflation and MSP provides a safety net to farmers.
New rail-road bridge in Varanasi
The Cabinet also approved a new rail-road bridge on Ganges in Varanasi. The new rail-road bridge will have 4 railway lines and 6-lane highway bridges built at an investment of Rs 2,642 crore, Vaishnaw said, adding that it will be built over the next 4 years. The project traverses via Varanasi and Chandauli districts in Uttar Pradesh.
"The proposed multi-tracking project will ease operations and reduce congestion, providing the much-required infrastructural development on the busiest sections across Indian Railways," a press statement said.
The minister also said that the new bridge will help save diesel imports of 8 crore litres per year, costing Rs 638 crore annually.
DA bonanza for government employees ahead of Diwali
In another major development, the Cabinet has approved an increase of 3 percent in dearness allowance of government employees. The financial implication of the hike will be Rs 9,448 crore, he said, adding that the increase will be effective from July 1.
This move will provide a boost to about 49.18 lakh central government employees and 64.89 lakh pensioners.
The hike in MSP for Rabi crops and in DA comes just a few weeks ahead of crucial state elections in Maharashtra and Jharkhand. However, the minister claimed that the announcements are "not related to upcoming elections in some states".
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
