Centre raises MSP of 17 kharif crops; further revises MSME definition.
The Cabinet Committee on Economic Affairs (CCEA) on June 1 approved reclassification of medium scale companies as those with Rs 50 crore as investments and Rs 250 crore as turnover, up from Rs 20 crore and Rs 100 crore, respectively.
This comes weeks after Union Finance Minister Nirmala Sitharaman expanded the definition of medium, small manufacturing enterprises (MSMEs) while announcing the Rs 20-trillion Atmanirbhar Bharat package.
The government also raised the minimum support price (MSP) of 17 kharif crops in the range of 2-7.5 per cent year-on-year on the day India got its first monsoon shower. The increase in MSP was among the lowest in last five years for many crops. The new prices would be 50 83 per cent more over the cost of production, agriculture minister Narendra Tomar said. The Centre also extended the interest subvention scheme for crop loans for three months till August 31.
The move to increase the turnover limit for medium units to Rs 250 crore took into account the rising cost of businesses and is expected to bring a much larger number of companies into the MSME fold. The government clarified proceeds from exports will not be counted in the turnover limit for any MSME.
The new definition is expected to go live from July 1.