The Central government recently announced a series of significant measures aimed at providing relief and support to various sectors. These decisions were revealed during a cabinet meeting led by Union Minister Ashwini Vaishnaw and included a three percent increase in Dearness Allowance (DA), a substantial rise in the Minimum Support Price (MSP) for several key crops, and the approval of vital infrastructure projects.
One of the highlights of the announcements was the increase in Dearness Allowance for central government employees and pensioners. This hike of three percent raises the existing DA rate to 53 percent of the Basic Pay or Pension, helping to alleviate the financial burden on employees amid rising prices.
This adjustment aligns with the recommendations of the seventh Central Pay Commission and is expected to cost the exchequer approximately Rs 9,448.35 crore annually. Around 49.18 lakh central government employees and 64.89 lakh pensioners will benefit from this decision, making it a welcome festive season boost.
In addition to the DA increase, the government also approved the construction of the Varanasi-Pt Deen Dayal Upadhyaya multitracking project across the Ganga River.
This ambitious project has been allocated a budget of Rs 2,642 crore and aims to construct a new rail-cum-road bridge that will significantly enhance the existing railway infrastructure. This bridge will connect Varanasi and Chandauli districts in Uttar Pradesh, providing vital support to one of India’s busiest railway routes.
The Varanasi-Pt. Deen Dayal Upadhyaya route is crucial for both passenger and freight transport. It currently experiences severe congestion due to its role in moving essential goods such as coal, cement, and foodgrains.
The new infrastructure project will add 30 kilometres to the railway network, improve capacity, and enhance efficiency, thereby supporting the socio-economic growth of the region. It is expected to alleviate traffic congestion and manage an estimated 27.83 million tonnes per annum of freight along the proposed stretch.
The cabinet's decisions also included an increase in the Minimum Support Prices for Rabi crops for the marketing season of 2025-26. This increase aims to provide farmers with better remuneration for their produce.
The highest increase in MSP has been allocated to rapeseed and mustard, which will see a rise of Rs 300 per quintal. Lentils will see an increase of Rs 275 per quintal, while grams will go up by Rs 210 per quintal. The MSP for wheat, safflower, and barley will increase by Rs 150, Rs 140, and Rs 130 per quintal, respectively.
These MSP hikes align with the government's commitment to ensuring that farmers receive at least 1.5 times the All-India weighted average cost of production, as outlined in the Union Budget for 2018-19.
The expected margins over the average cost of production for the newly adjusted MSPs are notable. For instance, wheat will have a margin of 105 percent, while rapeseed and mustard will see a margin of 98 percent.
Lentils will have a margin of 89 percent, while both grams and barley will have margins of 60 percent. Safflower is expected to have a 50 percent margin. This increase in MSP is intended not only to guarantee fair prices for farmers but also to encourage crop diversification.
Moreover, the government approved a significant allocation of Rs 35,000 crore for the PM Annadata Aay Sanrakshan Abhiyan (PM-AASHA). This initiative aims to ensure that farmers receive fair prices while stabilising market prices for consumers.
The program seeks to promote self-sufficiency in the production of pulses, oilseeds, and other essential agricultural and horticultural commodities. By doing so, it aims to boost farmers' incomes while also protecting the interests of consumers.
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