Cabinet Meeting: As Diwali approaches, the Indian government has announced an important initiative to help farmers and the people of Varanasi. In a recent Cabinet Meeting, chaired by Prime Minister Shri Narendra Modi, the Cabinet Committee on Economic Affairs (CCEA) approved an increase in the Minimum Support Prices (MSP) for all designated Rabi crops for the Marketing Season 2025-26. Additionally, the cabinet approved the construction of a new rail-road bridge over the Ganga River in Varanasi. This project is expected to cost ₹2,642 crore.
Increased MSP for Rabi Crops
The government’s decision to raise the MSP for Rabi crops is designed to provide farmers with fair and profitable prices for their harvests. The most significant hike has been made for rapeseed and mustard, which will see an increase of ₹300 per quintal. Following this, the MSP for lentils (Masur) will rise by ₹275 per quintal. Other crops like gram, wheat, safflower, and barley will receive increases of ₹210, ₹150, ₹140, and ₹130 per quintal, respectively.
This increase aligns with the commitment made in the Union Budget 2018-19 to set MSP at least 1.5 times the All-India weighted average cost of production. As a result, the expected profit margin over the all-India average cost of production will be about 105 percent for wheat, 98 percent for rapeseed and mustard, 89 percent for lentils, 60 percent for gram, and barley, and 50 percent for safflower. This boost in MSP aims to not only secure better returns for farmers but also encourage them to diversify their crops.
Infrastructure Push in Varanasi
In addition to the MSP hike, the cabinet’s approval for a new rail-road bridge in Varanasi marks a significant infrastructure development. Railway Minister Ashwini Vaishnaw highlighted the importance of this project, stating that the new bridge will replace the aging Malviya Bridge, which has been in operation for 137 years. The existing bridge currently accommodates two rail lines and two road lanes.
With a lifespan of 150 years and a length of more over one km, the new bridge will improve connectivity between Varanasi and Chandauli. It is anticipated that this infrastructural initiative would reduce traffic in one of India’s busiest railway segments. With a projected yearly savings of ₹638 crore in diesel imports as a result of lower fuel consumption—which is predicted to drop by about 8 crore litres annually—the initiative is also likely to have significant economic advantages.
Additional Support for Central Employees
In a related announcement, the Modi government also approved a 3% increase in Dearness Allowance (DA) and Dearness Relief (DR) for central employees and pensioners. This decision will inject an annual amount of ₹9,448 crore into the salaries of all central government employees, further enhancing their financial well-being.
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