Cabinet approves MSP hike for 14 kharif crops, Rs 20,000 crore infusion into MSME sector- Key takeaways

Union Ministers Prakash Javadekar, Nitin Gadkari and Narendra Tomar addressed the media on Union Cabinet’s decisions taken during the meeting that was chaired by PM Narendra Modi, earlier on Monday.

The cabinet took some major decisions on MSMEs and agriculture and termed them as ‘historic decisions’ that are taken for farmers, small and medium businesses and traders.

The Centre made a push to support the MSMEs as they announced credit support.

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Here are the key takeaways from the announcement on the Union Cabinet’s decisions-

– MSMEs play a crucial role in the building of an Aatmanirbhar Bharat. Accordingly, MSMEs have been made an important part of Aatmanirbhar Bharat Abhiyan package.

– MSME definition has been further amended since announcement of Aatmanirbhar Bharat Package.

– Key steps taken by the government to boost MSMEs-

  • Rs 20,000 crores infusion into the sector.
  • Rs 20,000 crore subordinate debt for stressed MSMEs, this will benefit 2 lakh stressed MSMEs.
  • Rs 50,000 crore equity infusion for MSMEs, this will strengthen their growth potential and will enable them to get listed on stock exchanges.

– Turnover limit for medium enterprises revised upward to Rs 250 crore, from Rs 100 crore as announced earlier. The investment limit has been raised to Rs 50 crore.

– Cabinet approves MSP for 14 khaarif crops; farmers to get 50-83% more than cost.

  • MSP rate for Paddy up by Rs 53 per quintal to Rs 1868 per quintal for 2020-21.
  • MSP for cotton increased by Rs 260 to Rs 5,515 per quintal for 2020-21.
  • MSP for Jowar-Rs 2620/quintal for 2020-21.
  • MSP for Bajra-Rs 2150/quintal for 2020-21.
  • 50% increase in Ragi, Moong, Groundnut, Soyabean, Til for the year 2020-21.

– The farmers will get more time to repay their loans, till August 31 now.

– Street vendors can avail working capital loan of up to Rs 10,000. It will be repayable in monthly installments. Portal and mobile app have been started for loan scheme for street vendors

– 48% of the total exports from India are dependent on 6 crore MSMEs. MSMEs also provide more than 11 crore jobs

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