Cabinet Hikes MSP of 6 Rabi Crops, DA by 3%

New Delhi: The Union Cabinet on Wednesday approved an increase in the Minimum Support Price (MSP) for six rabi crops from `130 to `300 per quintal for the 2025-26 marketing season. Ahead of Diwali, the Cabinet also increased the Dearness Allowance (DA) by three percentage points effective from July 1 this year benefitting more than one crore employees and pensioners.

The Cabinet chaired by Prime Minister Narendra Modi also cleared the Varanasi-Pt Deen Dayal Upadhyaya (DDU) multi-tracking project including a new rail-cum-road bridge across Ganga River with an estimated cost of `2,642 crore.

Briefing the media after the Cabinet meeting, Union information and broadcasting minister Ashwini Vaishnaw said that like for Kharif crops, there is a significant increase in the MSP for rabi crops. The MSP of wheat increased by `150 to `2,425 per quintal, the minister said and noted that the new wheat MSP is 105 per cent higher than the cost of production and called it a big thing.

Among the other rabi crops, the Cabinet increased the MSP for rapeseed and mustard seed by `300 to `5,950 per quintal, safflower by `140 to `5,940 per quintal, lentil (masur) by `275 to `6,700 per quintal, gram by `210 to `5,650 per quintal and barley by `130 to ‘1,980 per quintal for 2025-26.

The announcement comes a day after Assembly polls in Maharashtra and Jharkhand were announced by the ECI. Vaishnaw, however, dismissed any connection between the Union Cabinet’s decision and the Assembly polls scheduled next month and said such a decision was taken around this time of year.

While informing the Cabinet’s decision on DA, Vaishnaw said that the financial implication of this DA/DR hike is `9,448 crore. This will benefit about 49.18 lakh central government employees and 64.89 lakh pensioners. The DA/DR hike is in accordance with the accepted formula, which is based on the recommendations of the Seventh Central Pay Commission.

To provide connectivity and facilitate ease of travelling, the Union Cabinet also approved construction of Varanasi-Pt Deen Dayal Upadhyaya multitracking with total estimated cost of `2,642 crore.

A statement said that the proposed multi-tracking project will ease operations and reduce congestion, providing the much-required infrastructural development on the busiest sections across Indian Railways. The project traverses through Varanasi and Chandauli districts in Uttar Pradesh.

The Varanasi Railway Station, a crucial hub in Indian Railways, connects key zones and serves as a gateway for pilgrims, tourists and the local population. The Varanasi-Pt Deen Dayal Upadhyaya (DDU) Junction route, vital for both passenger and freight traffic, faces heavy congestion due to its role in transporting goods like coal, cement, and foodgrains, as well as serving growing tourism and industrial demands.

The project is a result of PM-Gati Shakti National Master Plan for multi-modal connectivity which has been possible through integrated planning and will provide seamless connectivity for movement of people, goods and services.