New Delhi, October 18 : In a significant move, the Indian government has raised the minimum support price (MSP) for wheat by a substantial Rs 150, bringing it to Rs 2,275 per quintal for the upcoming 2024-25 marketing season. This unprecedented increase in MSP, the highest since the Modi government assumed power in 2014, comes just before crucial assembly elections in major wheat-producing states. The decision was made during a meeting of the Cabinet Committee on Economic Affairs (CCEA), presided over by Prime Minister Narendra Modi. The MSP of wheat for the current marketing season (2023-24) stands at Rs 2,125 per quintal.
The announcement, which aims to provide support to farmers, particularly in key wheat-growing states like Madhya Pradesh and Rajasthan, also factors in the recent consumer price pressures on wheat and wheat flour. A ban on wheat exports was enforced in May 2022 to curb rising prices of these commodities. This increase in the MSP is the highest since the marketing season of 2015-16, surpassing previous increments that ranged from Rs 100 to Rs 110 per quintal for the marketing seasons of 2017-18, 2018-19, 2019-20, and 2023-24.
The government also raised the MSP for five other rabi crops: gram, barley, lentil (masur), rapeseed-mustard seed, and safflower. Barley’s MSP increased by Rs 115 to Rs 1,850 per quintal for the 2024-25 season. Among rabi pulses, the MSP of gram rose by Rs 105 to Rs 5,440 per quintal, and lentil (masur) saw an increase of Rs 425, reaching Rs 6,425 per quintal. To encourage oilseed cultivation, rapeseed-mustard seed’s MSP was raised by Rs 200 to Rs 5,650 per quintal. Safflower’s MSP also saw a Rs 150 increase, setting it at Rs 5,800 per quintal for the 2024-25 season.
These adjustments align with the Union Budget 2018-19’s objective of fixing the MSP at a level of at least 1.5 times the all-India weighted average cost of production. The government has been actively promoting crop diversification towards oilseeds, pulses, and millets to enhance food security, increase farmers’ income, and reduce dependence on imports. Initiatives like the National Food Security Mission (NFSM), Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), and the National Mission on Oilseeds and Oil Palm (NMOOP) have been introduced to provide financial support and quality seeds, encouraging farmers to cultivate oilseeds and pulses.
In anticipation of the upcoming crop year (2023-24), the agriculture ministry has set a wheat production target of 114 million tonnes, which is higher than the actual output of 112.6 million tonnes achieved in 2022-23. The ministry also reported sufficient seed availability for wheat planting, with a surplus of approximately 20.8 lakh quintals over the required quantity for the upcoming rabi season. Moreover, the ministry is urging wheat-producing states to promote and expand the cultivation of climate-resilient wheat varieties, considering the challenges posed by climate change. This move seeks to fortify the country’s agricultural security while supporting the welfare of farmers.
Moreover, the Central government made a significant announcement by approving a 4% increase in Dearness Allowance (DA) for its employees. This decision raises the DA for central government employees from the existing 42% to 46%. The implementation of this DA hike is scheduled to take effect from July 1, 2023.
The impact of this decision is substantial, benefiting over 48.67 lakh central government employees and 67.95 lakh pensioners. The increase is in line with the established formula, which is based on the recommendations of the 7th Central Pay Commission, ensuring that employees are fairly compensated in accordance with economic conditions.
Additionally, in a complementary move, the Cabinet has given its approval for the disbursement of Productivity Linked Bonus (PLB) to railway employees. The PLB for railway employees equates to a generous 78 days of pay, offering a further incentive and acknowledgment of their hard work and dedication.
The calculation of dearness allowance for both employees and pensioners is rooted in the latest Consumer Price Index for Industrial Workers (CPI-IW) published by the Labour Bureau on a monthly basis. The Labour Bureau, an integral wing of the Ministry of Labour, plays a pivotal role in assessing and determining these adjustments, ensuring that they accurately reflect the changing cost of living.
It is noteworthy that the last revision in DA took place on March 24, 2023. This regular review and adjustment of DA are integral to safeguarding the economic interests of central government employees and pensioners, aligning their income with the evolving economic landscape. The increase in DA and the provision of PLB not only recognize the contributions of these individuals but also strive to mitigate the impact of inflation, thereby enhancing the overall well-being of those dependent on these allowances.
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