Cabinet Approves Major Decisions Worth ₹2.79 Lakh Crore, Raises Rabi MSP

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved three major decisions involving a total financial outlay of around ₹2.79 lakh crore, including a significant increase in the Minimum Support Price (MSP) for six rabi crops for the 2027-28 marketing season.

The decisions were announced by Union Minister Ashwini Vaishnaw following the Cabinet meeting. The measures cover agricultural support, renewable energy infrastructure and intelligent traffic management in the national capital.

MSP Hike for Six Rabi Crops

The Cabinet Committee on Economic Affairs (CCEA) has approved an increase in the MSP of six mandated rabi crops for the 2027-28 marketing season. Safflower has received the highest increase of ₹675 per quintal.

The revised MSPs are:

• Wheat: Increased by ₹25 to ₹2,610 per quintal
• Barley: Increased by ₹136 to ₹2,286 per quintal
• Gram: Increased by ₹83 to ₹5,958 per quintal
• Lentil (Masur): Increased by ₹390 to ₹7,390 per quintal
• Rapeseed and Mustard: Increased by ₹413 to ₹6,613 per quintal
• Safflower: Increased by ₹675 to ₹7,215 per quintal

According to Ashwini Vaishnaw, the estimated margin over the cost of production at the all-India level stands at 106% for wheat, 96% for rapeseed and mustard, 92% for lentil, 59% for gram, 58% for barley and 50% for safflower.

The government said the MSP hike is aimed at ensuring remunerative prices for farmers and encouraging crop diversification.

₹1.86 Lakh Crore Renewable Energy Grid Plan

In another major decision, the Union Cabinet approved an investment of ₹1.86 lakh crore under the PM DRAH scheme for developing grid and smart-grid infrastructure required for renewable energy.

The proposed inter-state transmission system is expected to facilitate the integration and transmission of 135 GW of renewable energy, supported by 50 GWh of battery storage capacity.

The initiative is aimed at strengthening the country’s power transmission infrastructure and supporting the integration of increasing renewable energy capacity into the national grid.

AI-Based Traffic Management for Delhi

The Cabinet also approved an Intelligent Traffic Management System (ITMS) for Delhi to improve traffic management and road safety in the national capital.

The technology-driven system will use intelligent monitoring and traffic-management tools to help regulate vehicular movement, address congestion and improve road safety.

The ITMS is expected to assist authorities in monitoring traffic conditions in real time and managing vehicle movement more efficiently across Delhi.

The three decisions together mark major government interventions in agriculture, renewable energy infrastructure and urban mobility, with the MSP decision directly targeting farm income support while the other initiatives focus on energy infrastructure and technology-based traffic management.