In a significant move, the Indian government has announced a substantial increase in the minimum support price (MSP) for wheat, marking the most significant hike since Prime Minister Narendra Modi assumed office in 2014. The decision was made by the Cabinet Committee on Economic Affairs, chaired by PM Modi, with an eye on the upcoming assembly elections in five states.
For the 2024-25 marketing season, the MSP for wheat will be set at ₹2,275 per quintal, signifying a notable ₹150 increase from the previous season’s rate of ₹2,125 per quintal. This move aims to bolster the agricultural sector and support farmers across the country, particularly as wheat is a crucial rabi crop harvested in April.
The increase in MSP is part of a broader initiative, with the panel approving higher MSP rates for all mandated rabi crops for the 2024-25 season. Apart from wheat, the government has announced significant hikes for other crops as well. The MSP for masoor dal will see the highest increase, with a ₹425 per quintal rise. Rapeseed and mustard will witness a ₹200 per quintal increase, safflower MSP has been raised by ₹150, while barley and gram will see MSP hikes of ₹115 and ₹105, respectively.
The MSP is essentially the guaranteed minimum price at which the government purchases crops from farmers, providing a crucial safety net for agricultural producers.
This development coincides with the government’s decision to increase the dearness allowance (DA) for central government employees by four percentage points, bringing it to 46 percent. The new rates took effect from July 1, 2023, as announced by Information and Broadcasting Minister Anurag Thakur.
These policy changes were made public just ahead of the assembly elections in five states, including Madhya Pradesh, Chhattisgarh, Rajasthan, Telangana, and Mizoram. The elections are scheduled to begin on November 7 and conclude on November 30, with the counting of votes slated for December 3. The timing of these announcements suggests their potential impact on the electoral landscape and the government’s commitment to addressing the concerns of farmers and government employees.
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