Centre Extends LPG Subsidy, Raises Jute MSP, and Launches UNNATI Scheme for Northeast Development

Announcing the decision, Union minister Piyush Goyal told reporters here that the Cabinet Committee on Economic Affairs (CCEA) has now decided to extend this subsidy to 2024-25. “The move, likely to benefit nearly 10 crore families, will cost the government Rs 12,000 crore. It would be the best gift for our women the day before International Women's Day on March 8, the minister said.

The government had in October last year hiked the subsidy from Rs 200 per 14.2-kg cylinders for up to 12 refills per year to Rs 300 per bottle. The Rs 300 per cylinder subsidy was for the current fiscal, which ends on March 31.

As per the government statement, the Union cabinet approved the continuation of a targeted subsidy of Rs 300 per 14.2 kg cylinder (and proportionately pro-rated for 5 kg cylinder) for up to 12 refills per year to be provided to the beneficiaries of PMUY during FY 2024-25. As on 1 March, the PMUY scheme had about 102.7 million beneficiaries availing the subsidy, which is credited directly to their bank accounts.

To make liquified petroleum gas or LPG, a clean cooking fuel, available to rural and deprived poor households, the government launched the PMUY scheme in May 2016 to provide deposit-free LPG connections to adult women of poor households. While the connection was provided for free, the beneficiaries had to purchase LPG refills at market price.

As fuel prices soared, the government in May 2022 provided a Rs 200 per cylinder subsidy to PMUY beneficiaries. This was increased to Rs 300 in October 2023. Even ahead of assembly elections in five states, including Madhya Pradesh and Rajasthan, the government had in late August cut cooking gas prices by Rs 200 per cylinder. After this, the LPG cylinder price came down to Rs 903.

For Ujjwala beneficiaries, the price was Rs 603 after considering the Rs 300 per cylinder subsidy, which is directly paid into the bank accounts of connection holders. The targeted support to PMUY consumers encourages them for continuous use of LPG.

Meanwhile, the Centre also approved the hike of minimum suopport price or MSP for raw jute by Rs 285 to Rs 5,335 per quintal for the 2024-25 seasons. The decision to fix MSP of raw jute (TDN-3 equivalent to earlier TD-5 grade) was taken at the Cabinet Committee on Economic Affairs, Goyal said, adding that the decision will greatly benefit farmers in eastern states, especially West Bengal.

“In the current season 2023-24, the government has procured a record amount of more than 6.24 lakh bales of raw jute at the cost of Rs 524.32 crore, benefitting around 1.65 lakh farmers. The MSP for 2024-25 will ensure a return of 64.8 per cent over the all-India weighted average cost of production,” an official release said.

Besides, The Centre also cleared a Rs 10,037-crore new industrial development scheme, UNNATI, for northeast states. The Union Cabinet in a meeting approved the Uttar Poorva Transformative Industrialization Scheme, 2024, according to an official release.

The central sector scheme has been announced for the development of industries and employment generation in the states of North East Region. The scheme's main objective is to generate gainful employment, which will lead to the area's overall socio-economic development.