Cabinet approves increase of MSP for 14 kharif crops

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Farmers to get 50-83% more than input cost

NEW DELHI: Cabinet has increased Minimum Support Price for 14 kharif crops, Information and Broadcast Minister Prakash Javadekar said.

“The increased MSP will ensure a price which will be 50 per cent to 83 per cent more than the cost of production,” the minister said at a press conference called to announce Cabinet decisions.

Agriculture Minister Narendra Tomar, who also addressed the press conference along with Javadekar and Union Minister Nitin Gadkari, said the central government decided to increase the MSP for cotton by Rs 260 to Rs 5,515 per quintal for crop year 2020-21.

Several of the Cabinet decisions were focused on MSMEs—a follow-up of a series of announcements made by Finance Minister Mirmala Sitharaman last month. The decisions include widening the definition of MSMEs, approving equity infusion of Rs 50,000 crore for MSMEs and sanctioning two separate funds—a distressed asset fund of a Rs 20,000 crore and fund-of-fund.

The Distressed Assets fund aims at extending support to promoters of distress units.

Under the scheme, the central government will provide guarantee coverage of up to 85 percent for loans up to Rs 5 lakh and 75 pe rcent for loans beyond Rs 5 lakh from financial institutions.

The fund is expected to benefit nearly two lakh MSMEs.

The Rs 50,000 crore fund-of-fund meanwhile aims at providing assistance to viable MSMEs that need, in Sitharaman’s words last month, “government hand-holding”.

“Cabinet decisions will aid MSMEs to attract investments and create jobs,” Union Minister Nitin Gadkari said.

The Cabinet also approved a credit scheme for street vendors.