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DA hike to MSP: Here's a list of key announcements by the Union Cabinet

2024-10-16 00:00:00.0 商业标准报-经济和政策原网页

The Prime Minister Narendra Modi-led Union Cabinet on Wednesday (October 16) announced key decisions such as hiking the Minimum Support Price (MSP) for farmers and increasing the Dearness Allowance (DA) for central government employees, among other measures, ahead of the upcoming Diwali festival.

Here are the key Cabinet announcements:

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Revised MSP Rates:

The MSP for six rabi crops has been raised by Rs 130 to Rs 300 per quintal, reflecting a 50 to 105 per cent increase. The specific hikes are as follows:

Wheat: Rs 150 per quintal Barley: Rs 130 per quintal Gram: Rs 210 per quintal Lentil: Rs 275 per quintal Mustard: Rs 300 per quintal Sunflower: Rs 140 per quintal

Remunerative pricing:

Union Minister Ashwini Vaishnaw highlighted that the MSP for wheat is now 105 per cent above the cost of production. He pointed out that over the past decade, MSP for these crops has nearly doubled, ensuring farmers receive remunerative prices while promoting crop diversification.

Farmer benefits:

The MSP increase aims to provide a safety net for farmers, particularly amidst a visible "moderation" in inflation. From 2014 to 2024, the total procurement value for these crops stood at Rs 20.64 trillion.

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The MSP safeguards farmers against sharp price declines and plays a vital role in maintaining food security. It also serves as a reference for market price determination, offering financial stability to encourage better crop yields.

Announcement of a new rail-road bridge in Varanasi

Infrastructure development:

The Cabinet also sanctioned the construction of a new rail-road bridge over the Ganga river in Varanasi. This project will include four railway tracks and a six-lane highway, with a total investment of Rs 2,642 crore and is expected to be completed within four years.

Project advantages:

The new bridge will boost operational efficiency, reduce traffic congestion, and promote infrastructure growth along one of the busiest railway sections in India. It is projected to save 8 crore litres of diesel each year, amounting to Rs 638 crore in savings.

Additionally, the project will generate employment equivalent to 10 lakh human-days during its construction phase.

Additional Cabinet announcement

In another important decision, the Cabinet approved a 3 per cent increase in DA for central government employees. This adjustment, which will cost Rs 9,448 crore, is expected to benefit around 4.91 million central employees and 6.48 million pensioners. The DA hike will take effect from July 1 next year.

DA is a component of basic salary intended to mitigate the effects of inflation on the cost of living. It is generally revised biannually to account for changes in the cost of living.

The DA is calculated using the All India Consumer Price Index (AICPI), which tracks retail price fluctuations, and is adjusted twice a year. An increase in DA results in higher take-home pay, providing much-needed relief for households grappling with inflation.