On June 1, 2020 the Union Cabinet has announced a slew of decisions pertaining to agriculture, MSME and people who find livelihood on street side vending.
In agriculture, the government raised the Minimum Support Price of major crops, providing relief to farmers during the tough time of pandemic situation.
With regards to the MSME sector, in the previous announcement, Finance Minister Nirmala Sitharaman had expanded the limit of MSMEs by changing the definition. After consulting various stakeholders, the turnover limit has been further expanded to define MSMEs. Also, the MSME units who have good record and balance sheets are being encouraged to enter the share market with the help of the equity support fund.
- Minimum support prices (MSP) for 14 kharif crops increased by 50- 83%, to provide relief to the farmers.
- The loan repayment option for farmers for the rabi season has been extended till 31st August 2020. The farmers will in turn get loan at 4% interest under the interest relief initiative.
- 360 lakh MT wheat and 95 lakh MT of rice have been procured so far; 16.7 lakh MT of pulses and oilseeds have also been procured, exceeding previous year achievements.
- Turnover limit for medium enterprises has been revised upward to ₹ 250 crore from the earlier announcement of ₹ 100 crore
- Export turnover will not be captured in the limit definition, giving major encouragement to MSME sector
- ₹20,000 crore subordinate debt support to MSMEs has been approved, and is expected to help 2 lakh MSMEs in distress
- ₹50,000 crore equity support has also been approved by Cabinet with initial ₹10,000 crore outlay
Prime Minister Street Vendor Aatma Nirbhar Nidhi (PM SVANIDHI)
- Rural and urban area vendors will get credit of ₹10,000
- The loan can be returned in one year on monthly EMI basis; no penalties shall be enforced
- Portal and mobile app-based dashboard shall be developed to ensure transparency and accountability
- Digital transaction shall be encouraged through portal for financial inclusion