Cabinet approves release of an additional installment of Dearness Allowance

Cabinet approves release of an additional installment of Dearness Allowance and Dearness Relief due from 1.1.2020:

The Union Cabinet, chaired by the Prime Minister, Narendra Modi has approved to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2020.  There will be an increase of 4 percent over the existing rate of 17 percent of the Basic Pay/Pension, to compensate for price rise.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.12,510.04 crore per annum and Rs.14,595.04 crore in Financial Year 2020-21 (for a period of 14 months from January 2020 to February 2021). It will benefit about 48.34 lakh Central Government employees and 65.26 lakh, pensioners.

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

Cabinet approves Minimum Support Price for Copra for 2020 season:

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has given its approval for the Minimum Support Prices (MSPs) for copra for 2020 season.

The MSP for Fair Average Quality (FAQ) of milling copra has been increased to Rs. 9,960/- per quintal for 2020 season from Rs. 9,521/- per quintal in 2019 and the MSP for ball copra has been increased to Rs. 10,300/- per quintal for 2020 season from Rs. 9,920/- per quintal in 2019. This will accrue a benefit of Rs 439/- per quintal in the milling copra and Rs 380/- increase in the Ball Copra.

This is to ensure a return of 50 percent for milling copra and 55 percent for ball copra over the all India weighted average cost of production.

The approval is based on recommendations of the Commission for Agricultural Costs and Prices (CACP).
The increase in MSP for copra for 2020 season is in line with the principle of fixing the MSP at a level of at least 1.5 times the all India weighted average cost of production which was announced by the Government in the Budget 2018-19.
It assures a minimum of 50 percent as the margin of profit as one of the important and progressive steps towards making possible doubling of farmers' incomes by 2022.

The National Agricultural Cooperative Marketing Federation of India Limited (NAFED) and National Cooperative Consumer Federation of India Limited (NCCF) will continue to act as Central Nodal Agencies to undertake price support operations at the MSP in the coconut growing states.

Last year when there was a crash in prices in Tamil Nadu, the timely intervention by Govt of India through purchase at MSP, pushed the market sentiment upward benefitting the copra farmers.

India is number one in production and productivity of Copra in the World.