Cabinet okays DA, wheat MSP hike

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The Union Cabinet on Wednesday increased the dearness allowance and dearness relief by 4 percentage points to 46 per cent to benefit 48.67 lakh central government employees and 67.95 lakh pensioners. The increase will be applicable from July 1, 2023. The additional DA and DR will result in an outg of Rs 12,815 cr. The arrears are likely to be paid with salary and pension of October 2023.

The cabinet also decided to pay  78 days of salaries as bonus for non-gazetted railway staff. This will benefit more than 11.07 lakh non-gazetted staff of the railways.

The decision will benefit track maintainers, loco pilots, train managers (guards), station masters, supervisors, technicians, technician helpers, pointsmen, ministerial staff and other Group ‘C’ staff, excluding the RPF and RPSF personnel.

The higher amount in hand with the government employees is expected to push the demand for consumer goods.

This increase is in accordance with the accepted formula, based on the recommendations of the 7th Central Pay Commission.

The cabinet also raised the minimum support price (MSP) of wheat by Rs 150 to Rs 2,275 per quintal for the 2024-25 marketing season. This hike comes ahead of the elections in key wheat producing states of Madhya Pradesh and Chhattisgarh. This is the highest increase by the Narendra Modi-led government since it came to power in 2014. A decision in this regard was taken in the meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Modi. Currently, the MSP on wheat stands at Rs 2,125 per quintal for the 2023-24 marketing season (April-March). Briefing media, I&B minister Anurag Thakur said the CCEA has approved the increase in the MSP for all mandated rabi crops for 2024-25 marketing season. “Based on the CACP recommendation, we have increased the MSP of six rabi crops. Wheat MSP has been increased by Rs 150 per quintal,”  Thakur said. The support price of wheat has been increased to Rs 2,275 per cent quintal for 2024-25 marketing season, from Rs 2,125 per quintal in 2023-24, he added. Wheat is the main rabi (winter) crop, sowing of which begins in October, while harvesting in April. MSP is the minimum rate ensured to protect the interest of farmers and below this rate the grain is not purchased by the government procurement agencies.