Transport minister Nitin Gadkari said today that the cabinet has approved the road map for implementing two packages for MSMEs which includes Rs 20,000 crore package for distressed <a href="https://www.wionews.com/business-economy/government-changes-definition-of-msmes-pm-modi-says-will-empower-entrepreneurs-298496">MSMEs</a> and Rs 50,000 crore equity infusion through Fund of Funds.

Watch Video:

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/indian-government-outlines-economy-rivival-plan-big-relief-for-msmes-298511/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Prakash Javadekar said that the cabinet has approved Rs 20,000 crore subordinate debt for stressed MSMEs which will benefit 2 lakh stressed MSMEs.

"The turnover limit for medium enterprises has been further amended to Rs 250 crore and investment limit has been raised to Rs 50 crore," Javadekar added.

The government said it was hiking the Minimum Support Price(MSP) of paddy by Rs 53 per quintal to Rs 1,868 per quintal for the 2020-21 crop year.&nbsp;

The Union cabinet also approved an increase in the MSP of 14 Kharif crops. Information &amp; Broadcasting minister Prakash Javadekar said the increased MSP will ensure price which will be 50 per cent to 83 per cent more than the cost of production.

The government also increased MSP for cotton by Rs 260 to Rs 5,515 per quintal for 2020-21.&nbsp;

"The farmers will get more time to repay their loans, till August,"&nbsp;Union minister Narendra Tomar asserted.

Transport minister Nitin Gadkari said today that the cabinet has approved the road map for implementing two packages for MSMEs which includes Rs 20,000 crore package for distressed MSMEs and Rs 50,000 crore equity infusion through Fund of Funds.

Transport minister Nitin Gadkari said today that the cabinet has approved the road map for implementing two packages for MSMEs which includes Rs 20,000 crore package for distressed MSMEs and Rs 50,000 crore equity infusion through Fund of Funds. Watch Video: Prakash Javadekar said that the cabinet has approved Rs 20,000 crore subordinate debt for stressed MSMEs which will benefit 2 lakh stressed MSMEs. "The turnover limit for medium enterprises has been further amended to Rs 250 crore and investment limit has been raised to Rs 50 crore," Javadekar added. The government said it was hiking the Minimum Support Price(MSP) of paddy by Rs 53 per quintal to Rs 1,868 per quintal for the 2020-21 crop year. The Union cabinet also approved an increase in the MSP of 14 Kharif crops. Information & Broadcasting minister Prakash Javadekar said the increased MSP will ensure price which will be 50 per cent to 83 per cent more than the cost of production. The government also increased MSP for cotton by Rs 260 to Rs 5,515 per quintal for 2020-21. "The farmers will get more time to repay their loans, till August," Union minister Narendra Tomar asserted.

Government pushes to revive MSMEs amid COVID-19 crisis

Bollywood actor Nana Patekar on Thursday said that <a href="https://www.wionews.com/india-news/andhra-pradesh-farmers-seek-state-bjp-chiefs-support-to-oppose-3-capitals-plan-of-jagan-government-270016">farmers </a>were not beggars and they need emotional support along with financial support to resolve the <a href="https://www.wionews.com/india-news/andhra-pradesh-farmers-protest-against-gn-rao-committee-report-runs-into-day-3-269542">issue of farmers</a>' suicide in Maharashtra.

"It is ok if political leaders do not give money to <a href="https://www.wionews.com/videos/wion-dispatch-farmers-protests-in-a-unique-way-264942">farmers</a>. They do not only need loan waivers, but they also need emotional support and encouragement. We need to talk to them. <a href="https://www.wionews.com/india-news/after-cabinet-meeting-thackeray-announces-rs-20-crore-for-raigads-development-265144">Farmers </a>are not beggars," he said while addressing a public event in Chinchwad city of Maharashtra.

<img alt="Farmers in India" data-entity-type="file" data-entity-uuid="0829fd21-cd57-4b0f-91d2-a92fdaccd0a5" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design%20%2877%29_2.jpg" /> 
[&nbsp;Farmers in India (Courtesy: Reuters) ]

Also Read:&nbsp;<a href="https://www.wionews.com/india-news/farmers-wont-be-eligible-for-waiver-scheme-if-loan-exceeds-rs-2-lakh-maharashtra-government-270778">Farmers won't be eligible for waiver scheme if loan exceeds Rs 2 lakh: Maharashtra government</a>

He also stressed up-on fixing the prices of the vegetables and urged people not to bargain with the vegetable vendors.

"Everything here has a fixed price but on our tomato and potato, there is no price label. Your fees are fixed, the prices of the cars are fixed...I request you all not to bargain with the vegetable vendors on the streets. We must all think about the problems farmers are facing..."

Bollywood actor Nana Patekar on Thursday said that farmers were not beggars and they need emotional support along with financial support to resolve the issue of farmers' suicide in Maharashtra.

Bollywood actor Nana Patekar on Thursday said that farmers were not beggars and they need emotional support along with financial support to resolve the issue of farmers' suicide in Maharashtra. "It is ok if political leaders do not give money to farmers. They do not only need loan waivers, but they also need emotional support and encouragement. We need to talk to them. Farmers are not beggars," he said while addressing a public event in Chinchwad city of Maharashtra. [ Farmers in India (Courtesy: Reuters) ] Also Read: Farmers won't be eligible for waiver scheme if loan exceeds Rs 2 lakh: Maharashtra government He also stressed up-on fixing the prices of the vegetables and urged people not to bargain with the vegetable vendors. "Everything here has a fixed price but on our tomato and potato, there is no price label. Your fees are fixed, the prices of the cars are fixed...I request you all not to bargain with the vegetable vendors on the streets. We must all think about the problems farmers are facing..."

Farmers are not beggars, don't need just loan waivers: Nana Patekar

The BJP on Monday claimed 95 per cent of the farm loan beneficiaries in Madhya Pradesh have got benefits of up to mere Rs 15,000 and not to the tune of Rs 2 lakh as claimed by the ruling Congress.

The main opposition party said not a single farmer has got loan waiver benefit of Rs 2 lakh as announced under the scheme by the Congress government, which assumed office in December last year.

Addressing a press conference here, BJP leader Narottam Mishra said, "95 per cent farmers covered under the farm loan waiver scheme have got benefits of only up to Rs 15,000.

"Not a single farmer in the state has got the benefit of Rs 2 lakh as announced by the Congress.

"Congress president Rahul Gandhi had announced that he would change the CM if he failed to implement the loan waiver scheme within 10 days of coming to power.

"Now, the states Congress government itself has accepted in advertisements published in newspapers that the second phase of the loan waiver scheme is being launched now," he said.

The state government has failed to implement this scheme even after six months. Now, Rahul should change the chief minister for failing to waive loans within 10 days (as promised earlier), said Mishra, a former minister.

Chief Minister Kamal Nath completed six months in office on Monday. In run up to the November Assembly polls, Gandhi had announced to write-off individual agriculture loans of up to Rs 2 lakh within 10 days of his party assuming power.

In early May, Nath had said crop loans of over 21 lakh farmers have been cleared so far by his government.

Mishra also accused the Nath government of not submitting the complete list of farmers to the Centre for providing them financial assistance of Rs 6,000 per annum under the Kisan Nidhi Yojana.

There are 80 lakh registered farmers in Madhya Pradesh, but the state government has provided the list of only 43,000 farmers to the Centre for providing assistance under the Kisan Nidhi Yojana.

"The state government is anti-farmer and creating hindrances in path of extending benefits to cultivators, the BJP leader said. 
 
He said the Congress government has "failed" on every front, including ensuring power supply, curbing crime against women, maintaining law and order and implementing loan waiver, in the last six months.

Instead, the Nath administration is blaming the opposition for the state's problems, he said.

"They are blaming the opposition for power cuts, crime and other issues. They are in the government, who is stopping them from taking action? Mishra asked.

To a question on the stability of the Nath government, being supported by the MLAs of the SP, the BSP and some independent lawmakers, the BJP leader said it will fall on its own.&nbsp;

&nbsp;

&nbsp;

The BJP on Monday claimed 95 per cent of the farm loan beneficiaries in Madhya Pradesh have got benefits of up to mere Rs 15,000 and not to the tune of Rs 2 lakh as claimed by the ruling Congress.

The BJP on Monday claimed 95 per cent of the farm loan beneficiaries in Madhya Pradesh have got benefits of up to mere Rs 15,000 and not to the tune of Rs 2 lakh as claimed by the ruling Congress. The main opposition party said not a single farmer has got loan waiver benefit of Rs 2 lakh as announced under the scheme by the Congress government, which assumed office in December last year. Addressing a press conference here, BJP leader Narottam Mishra said, "95 per cent farmers covered under the farm loan waiver scheme have got benefits of only up to Rs 15,000. "Not a single farmer in the state has got the benefit of Rs 2 lakh as announced by the Congress. "Congress president Rahul Gandhi had announced that he would change the CM if he failed to implement the loan waiver scheme within 10 days of coming to power. "Now, the states Congress government itself has accepted in advertisements published in newspapers that the second phase of the loan waiver scheme is being launched now," he said. The state government has failed to implement this scheme even after six months. Now, Rahul should change the chief minister for failing to waive loans within 10 days (as promised earlier), said Mishra, a former minister. Chief Minister Kamal Nath completed six months in office on Monday. In run up to the November Assembly polls, Gandhi had announced to write-off individual agriculture loans of up to Rs 2 lakh within 10 days of his party assuming power. In early May, Nath had said crop loans of over 21 lakh farmers have been cleared so far by his government. Mishra also accused the Nath government of not submitting the complete list of farmers to the Centre for providing them financial assistance of Rs 6,000 per annum under the Kisan Nidhi Yojana. There are 80 lakh registered farmers in Madhya Pradesh, but the state government has provided the list of only 43,000 farmers to the Centre for providing assistance under the Kisan Nidhi Yojana. "The state government is anti-farmer and creating hindrances in path of extending benefits to cultivators, the BJP leader said. He said the Congress government has "failed" on every front, including ensuring power supply, curbing crime against women, maintaining law and order and implementing loan waiver, in the last six months. Instead, the Nath administration is blaming the opposition for the state's problems, he said. "They are blaming the opposition for power cuts, crime and other issues. They are in the government, who is stopping them from taking action? Mishra asked. To a question on the stability of the Nath government, being supported by the MLAs of the SP, the BSP and some independent lawmakers, the BJP leader said it will fall on its own.

Madhya Pradesh farmers got benefits of up to Rs 15,000, not Rs 2 lakh: BJP

Amitabh Bachchan has done it again. The superstar has cleared the outstanding loans of over two thousand farmers from Bihar.&nbsp;The 76-year-old actor took to his personal blog to share the news.

Bachchan said he called on some of the farmers to his residence and donated the amount at the hands of his children Shweta and Abhishek.&nbsp; 
 
"A promise made done. The farmers from Bihar who had outstanding loans, picked 2,100 of them, and paid off their amount with an OTS with the bank. Called some of them over to Janak and personally gave it to them at the hands of Shweta and Abhishek," he wrote on his blog.&nbsp; 
 
The superstar also said he was on his way to honour another promise he made to the martyr families of the Pulwama terror attack. 
 
"Now going to Janak to complete another promise... To give some monetary assist to the martyrs families, who sacrificed their lives at Pulwama..."&nbsp; 
 
This isn't the first time that Bachchan has helped farmers in repaying their loand. He had earlier supported 1,398 farmers from Uttar Pradesh and 350 from Maharashtra by paying off their loans.&nbsp;

(With inputs from PTI)

Amitabh Bachchan has done it again. The superstar has cleared the outstanding loans of over two thousand farmers from Bihar. The 76-year-old actor took to his personal blog to share the news.

Amitabh Bachchan has done it again. The superstar has cleared the outstanding loans of over two thousand farmers from Bihar. The 76-year-old actor took to his personal blog to share the news. Bachchan said he called on some of the farmers to his residence and donated the amount at the hands of his children Shweta and Abhishek. "A promise made done. The farmers from Bihar who had outstanding loans, picked 2,100 of them, and paid off their amount with an OTS with the bank. Called some of them over to Janak and personally gave it to them at the hands of Shweta and Abhishek," he wrote on his blog. The superstar also said he was on his way to honour another promise he made to the martyr families of the Pulwama terror attack. "Now going to Janak to complete another promise... To give some monetary assist to the martyrs families, who sacrificed their lives at Pulwama..." This isn't the first time that Bachchan has helped farmers in repaying their loand. He had earlier supported 1,398 farmers from Uttar Pradesh and 350 from Maharashtra by paying off their loans. (With inputs from PTI)

Amitabh Bachchan pays off loan of 2,100 farmers from Bihar

It is unfortunate that the most important product in the world, food, suffers from an intransigent pricing problem. The producers never get the right price, rarely make enough profits to survive and are invariably veering between bankruptcy and debt.&nbsp;

The loan waiver is just another way of throwing money at a problem, putting a petty band-aid on a festering wound. Soon, loan waivers will become a fashion that will adorn the election manifestos of all the parties. The path to winning will go through giving. Basically, the loans are not waived but transferred from the books of the farmers to the state budget. The states will have to borrow money to pay the banks who have given these loans.

Most states do not have the revenue to pay the banks, so the interest burden from the borrowings will be paid out from capital expenditure. If that happens, the work in building or improving infrastructure in cities and urban areas will take a back seat.

Many have said that the loan waiver is not a solution. Then what, pray, is the way out? The farmer needs to be seen as a small businessman and has to be treated as such by banks, the government and even business.&nbsp;

There are three myths which need to be dispelled for any solution to ensure the survival of agriculture. One, armchair economists, wherever they are perched, need to understand that it’s not a price discovery problem, but realisation of price (daam kitna milta hai or how much price will the farmer get?) Hence electronic platforms do not serve any purpose as the farmer cannot sell on it. It helps only traders and speculators.&nbsp;

The second myth, dismantling the Agriculture Produce Marketing Committee (APMC), sounds like a great solution as it leads to legislative action, which politicians and bureaucrats can claim as a success. It does not solve anything till such time that the farmer is not given alternative marketplace or mandi to sell. Corporate retail buying cannot be an alternate market or buyer replacing the middleman of the mandis. A Walmart or a Grofers cannot and should not replace the mandis, because a single large buyer is as much a problem as a horde of middlemen. The third myth is that a corporate buyer will be more fair than traders in a mandi.

The pricing and realisation has to be real, transparent and cannot be left to the vagaries of the brutal market forces.&nbsp;

To understand the pricing conundrum for agricultural produce, the best example are vegetables. Its pricing clock starts ticking the moment vegetables are cut from the farm; every minute after that, its price declines, given that it is perishable. By the time the farmer reaches the market with it, he has only one option — to sell at whatever price he gets or dump as he cannot carry it back.&nbsp;

Hence, we hear vegetable produce being sold for a pittance, as low as 50 paise a kilo. It’s a sell or dump market. The produce cannot go back and every minute that passes, the price of the perishable goes down in value at the selling mart.

Plus, there are always too many sellers at the same time in the market. As they are not organised — unlike the buyer who manages to cartelize — they have no control over prices. This is where intervention is needed to regularise this market and remove the inherent unfairness embedded in it.

The solution lies in the BJP’s election manifesto, which recommends a farmers’ market. It needs a logistical backend created by a producer company jointly owned by the farmer and the state.&nbsp;

The Finance Minister has already given a 100 per cent tax exemption to producer companies. States need to create these producer companies and help farmers get their produce to the city consumers.&nbsp;

Only when the logistics are owned, controlled and not geared towards profit, will price realisation truly happen. Otherwise, it is the supply chain that eats up the margins of the farmer. The economic model for this supply chain has to be created at both the district and village cluster level.&nbsp;

Unfortunately, the government’s think tank is not interested in real models. Too dependent on foreign consultancy firms, which cut and paste templates from western markets.

The problem of small farmers and their inability to demand or command prices is a very Asian problem that typically afflicts very populous countries.

The way ahead lies in identifying the aspirational districts where this model can be rolled out. District Collectors across the country can look at these producer companies as job generating engines. The supply chain, once created, will benefit the ecosystem enormously.&nbsp;

There is an urgent need to address the agriculture problem, as there is another drought looming ahead with winter rains being below par across most of India. The north-west monsoon has been poor and several parts of the country are already facing acute water shortage. It would make sense for the government to think of a direct income transfer for all the farmers who had opened Jan-Dhan accounts as a stop gap measure till it implements the producer company model.

The design of the solution has to take into account that the government cushions the failure and incentivises success.

The current system is designed to enslave a large section of the population in a perpetual failure model. This has to change and a new model has to be implemented.

(This article was originally published on DNA. Read the <a href="https://www.dnaindia.com/analysis/column-the-sell-or-dump-market-2701082">original article)</a>

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) 
&nbsp;

It is unfortunate that the most important product in the world, food, suffers from an intransigent pricing problem. The producers never get the right price, rarely make enough profits to survive and are invariably veering between bankruptcy and debt.

It is unfortunate that the most important product in the world, food, suffers from an intransigent pricing problem. The producers never get the right price, rarely make enough profits to survive and are invariably veering between bankruptcy and debt. The loan waiver is just another way of throwing money at a problem, putting a petty band-aid on a festering wound. Soon, loan waivers will become a fashion that will adorn the election manifestos of all the parties. The path to winning will go through giving. Basically, the loans are not waived but transferred from the books of the farmers to the state budget. The states will have to borrow money to pay the banks who have given these loans. Most states do not have the revenue to pay the banks, so the interest burden from the borrowings will be paid out from capital expenditure. If that happens, the work in building or improving infrastructure in cities and urban areas will take a back seat. Many have said that the loan waiver is not a solution. Then what, pray, is the way out? The farmer needs to be seen as a small businessman and has to be treated as such by banks, the government and even business. There are three myths which need to be dispelled for any solution to ensure the survival of agriculture. One, armchair economists, wherever they are perched, need to understand that it’s not a price discovery problem, but realisation of price (daam kitna milta hai or how much price will the farmer get?) Hence electronic platforms do not serve any purpose as the farmer cannot sell on it. It helps only traders and speculators. The second myth, dismantling the Agriculture Produce Marketing Committee (APMC), sounds like a great solution as it leads to legislative action, which politicians and bureaucrats can claim as a success. It does not solve anything till such time that the farmer is not given alternative marketplace or mandi to sell. Corporate retail buying cannot be an alternate market or buyer replacing the middleman of the mandis. A Walmart or a Grofers cannot and should not replace the mandis, because a single large buyer is as much a problem as a horde of middlemen. The third myth is that a corporate buyer will be more fair than traders in a mandi. The pricing and realisation has to be real, transparent and cannot be left to the vagaries of the brutal market forces. To understand the pricing conundrum for agricultural produce, the best example are vegetables. Its pricing clock starts ticking the moment vegetables are cut from the farm; every minute after that, its price declines, given that it is perishable. By the time the farmer reaches the market with it, he has only one option — to sell at whatever price he gets or dump as he cannot carry it back. Hence, we hear vegetable produce being sold for a pittance, as low as 50 paise a kilo. It’s a sell or dump market. The produce cannot go back and every minute that passes, the price of the perishable goes down in value at the selling mart. Plus, there are always too many sellers at the same time in the market. As they are not organised — unlike the buyer who manages to cartelize — they have no control over prices. This is where intervention is needed to regularise this market and remove the inherent unfairness embedded in it. The solution lies in the BJP’s election manifesto, which recommends a farmers’ market. It needs a logistical backend created by a producer company jointly owned by the farmer and the state. The Finance Minister has already given a 100 per cent tax exemption to producer companies. States need to create these producer companies and help farmers get their produce to the city consumers. Only when the logistics are owned, controlled and not geared towards profit, will price realisation truly happen. Otherwise, it is the supply chain that eats up the margins of the farmer. The economic model for this supply chain has to be created at both the district and village cluster level. Unfortunately, the government’s think tank is not interested in real models. Too dependent on foreign consultancy firms, which cut and paste templates from western markets. The problem of small farmers and their inability to demand or command prices is a very Asian problem that typically afflicts very populous countries. The way ahead lies in identifying the aspirational districts where this model can be rolled out. District Collectors across the country can look at these producer companies as job generating engines. The supply chain, once created, will benefit the ecosystem enormously. There is an urgent need to address the agriculture problem, as there is another drought looming ahead with winter rains being below par across most of India. The north-west monsoon has been poor and several parts of the country are already facing acute water shortage. It would make sense for the government to think of a direct income transfer for all the farmers who had opened Jan-Dhan accounts as a stop gap measure till it implements the producer company model. The design of the solution has to take into account that the government cushions the failure and incentivises success. The current system is designed to enslave a large section of the population in a perpetual failure model. This has to change and a new model has to be implemented. (This article was originally published on DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Agrarian crisis: Farm loan waiver is not the solution

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Farmer Loans, News on Farmer Loans, stories on Farmer Loans, articles on Farmer Loans, Farmer Loans stories at Wion, Farmer Loans news, Farmer Loans latest news

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Government pushes to revive MSMEs amid COVID-19 crisis

Farmers are not beggars, don't need just loan waivers: Nana Patekar

Madhya Pradesh farmers got benefits of up to Rs 15,000, not Rs 2 lakh: BJP

Amitabh Bachchan pays off loan of 2,100 farmers from Bihar

Agrarian crisis: Farm loan waiver is not the solution