Government hikes Minimum Support Price of Kharif crops to boost farmers' income; also raises MSME turnover limit

Union Cabinet yesterday gave nod to historical decisions aimed at helping the Micro, Small and Medium Enterprises (MSMEs) and farmers. Information and Broadcasting Minister Prakash Javadekar who briefed to media informed that the Cabinet has further revised the definition of MSMEs, a decision which will lead to the inclusion of many industrial units under its ambit.

Those enterprises with investment up to Rs 50 crore and turnover of up to Rs 250 crore will now be able to avail the benefits of the MSME sector. All export turnovers of such enterprises will also remain exempted from the total turnover.

MSME Minister Nitin Gadkari said on the occasion that the Cabinet has also approved distressed MSME fund of Rs 20,000 crore for extending helping hand to the enterprises in distress. This decision will benefit over two lakh units in the country. He highlighted the decision of creation of Fund of Funds with an initial outlay of Rs 50,000 crore. The amount will be infused in the MSME sector through the equity route.

Announcing relief for the farmers, Agriculture Minister Narendra Singh Tomar said, the Minimum Support Prices (MSP) for 14 Kharif crops will be increased up to 83 per cent, to ensure better returns for their farm produce. The government hiked MSP for paddy by Rs 53 per quintal to Rs 1,868 per quintal while the MSP for cotton has been increased by Rs 260 to Rs 5,515 per quintal for the current crop year.

He informed that the Cabinet has also approved the extension of repayment date for short term loans for agriculture and allied activities till the end of August 2020. The decision will help all farmers whose loan repayment due dates were between March 1 and August 31, 2020.