Cabinet clears Kharif MSP hikes, ₹37,500-crore coal gasification push to shore up economy
Alright, listen up! This Cabinet news is a goldmine for your CLAT current affairs and legal reasoning. Basically, the government hiked Minimum Support Prices (MSP) for Kharif crops , that's monsoon crops , ensuring farmers get good returns. They also approved a massive ₹37,500-crore scheme for coal gasification to boost energy security and reduce imports. Plus, there's a new railway line and a Public-Private Partnership (PPP) for an airport. Here's the thing, this links to Directive Principles of State Policy (DPSP) like Article 38 and 39 about welfare and livelihood, potentially even Article 21. MSP aims for 'remunerative prices' using the A2+FL formula, covering costs plus family labor. The energy push aligns with sustainable development goals. So, focus on the rationale behind these economic and welfare policies.
Union Information and Broadcasting Minister Ashwini Vaishnaw, during a media briefing on cabinet decisions in New Delhi on Wednesday
| Photo Credit:
SHIV KUMAR PUSHPAKAR
As India grapples with heightened global uncertainty and external-sector pressures, the Union Cabinet on Wednesday cleared a series of measures spanning agriculture, energy and infrastructure, signalling a push to strengthen rural incomes, improve energy security and accelerate logistics modernisation.
In an apparent move to correct price distortions in certain crops, as flagged by the Economic Survey, the government has announced ₹10/quintal hike in the minimum support price (MSP) of maize and a modest 3 per cent rise in paddy MSP for Kharif 2026, while pulses (except moong), oilseeds and nutri cereal crops have been given 4-9 per cent increase over the previous year.
Announcing the new MSPs for the ensuing Kharif season after the Cabinet Committee on Economic Affairs (CCEA) approved the price recommendations of the Commission for Agricultural Costs & Prices (CACP), Information and Broadcasting Minister Ashwini Vaishnaw said the MSPs have been fixed to ensure remunerative prices for farmers and are at least 50 per cent above the cost of production (A2+FL formula) across all 14 crops.
The government estimates the total payout to farmers at ₹2.60 lakh crore after the revision in MSPs.
In a major energy-sector decision, the Cabinet also approved a ₹37,500-crore scheme to promote coal and lignite gasification projects as part of India’s broader strategy to reduce dependence on imported natural gas, methanol, ammonia and fertilisers. The scheme aims to enable 100 million tonnes of coal gasification by 2030, with incentives covering up to 20 per cent of plant and machinery costs for eligible projects.
The government said coal gasification would help monetise domestic coal resources more efficiently while supporting cleaner utilisation of coal through the production of synthetic natural gas, chemicals and fertiliser feedstock. The Cabinet also approved extending coal linkage tenure for gasification projects to 30 years under the non-regulated sector framework to improve investment viability.
Among other decisions, the Cabinet cleared a railway project in Gujarat involving a new broad-gauge line in Ahmedabad district to improve regional rail connectivity and freight movement. It also approved the development, operation and maintenance of Dr Babasaheb Ambedkar International Airport under a public-private partnership model aimed at expanding passenger and cargo handling capacity and strengthening aviation infrastructure in central India.