Latest news with #InterestSubventionScheme
Hindustan Times
2 days ago
- Business
- Hindustan Times
Govt working on strengthening rural economy: Himachal CM
Himachal chief minister (CM) Sukhvinder Singh Sukhu on Wednesday said that the state government is working with a resolve to make Himachal as a self-reliant and prosperous state, for which various measures have been taken during the last two and half years. He remarked that this dream can only be realised by strengthening the rural economy as around more than 80% population of Himachal is dependent on agriculture and horticulture. Shifting focus to raise the economy of the agrarian community is the top most priority of the state government. The chief minister said: 'Himachal has become the first state in the country to provide minimum support price (MSP) on organic products as produced from natural farming. My government twice enhanced the MSP on procurement of maize, firstly to ₹30 and thereafter to ₹40 per kg and that of wheat from ₹40 to ₹60 per kg . Besides, to increase the production of raw turmeric, my government is providing an MSP of ₹90 per kg.' The state government has introduced maize flour produced through natural farming under the brand name Him- Bhog Him- Makki. More than 4,000 quintals of maize has been procured from as many as 1,590 farmer families practising natural farming across 10 districts of the state, excluding Lahaul-Spiti and Kinnaur. Sukhu said the state government has made Him-bhog Him-Makki maize flour available through the Public Distribution System (PDS) depots across the state. This flour is also available for sale on HIM-ERA, the government-authorised portal. This initiative aims to make organic maize flour accessible to both urban and rural populations, he said, adding that ₹1.20 crore was directly transferred to farmers bank accounts for the procurement of around 400 metric tonnes of maize. 'When the Congress came to power two and a half years ago, I observed that the farmers used to sell their land under compulsion just to repay the loan amount. We decided to help such farmers through Interest Subvention Scheme, as a one-time settlement especially for those facing land auctions', said the CM.
India Gazette
2 days ago
- Business
- India Gazette
Govt according top priority to strengthen rural economy to realize dream of self-reliant Himachal: CM Sukhu
Shimla (Himachal Pradesh) [India], June 11 (ANI): Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu said the state government is working with a resolve to make Himachal Pradesh a self-reliant and prosperous state, for which various measures have been taken during the last two and a half years. He remarked that this dream can only be realised by strengthening the rural economy, as more than 80 per cent of Himachal's population is dependent on agriculture and horticulture. Shifting focus to raising the economy of the agrarian community is the state government's top priority. 'Himachal has become the first State in the country to provide a Minimum Support Price (MSP) on organic products produced from natural farming. My government twice enhanced the MSP on the procurement of maize, firstly to Rs. 30 and thereafter to Rs. 40 per kilogram and that of wheat from Rs 40 to Rs 60 per kilogram. Besides, my government is providing an MSP of Rs. 90 per kilogram to increase the production of raw turmeric,' Chief Minister said. The state government has introduced maize flour produced through natural farming under the brand name Him- Bhog Him- Makki. This product highlights the state's commitment to sustainable agriculture and empowering farmers. More than 4,000 quintals of maize have been procured from as many as 1590 farmer families practising natural farming across 10 districts of the state, excluding Lahaul-Spiti and Kinnaur, an official release said. Sukhu said the state government has made Him-bhog Him-Makki maize flour available through the Public Distribution System (PDS) depots across the state. 'This flour is also available for sale on HIM-ERA, the government-authorised portal. This initiative aims to make organic maize flour accessible to both urban and rural populations, he said, adding that Rs 1.20 crore was directly transferred to farmers' bank accounts for the procurement of around 400 metric tonnes of maize.' The state government has decided to provide an MSP for raw turmeric from this financial year, which will be processed and marketed under the brand name 'Himachal Haldi'. The state government has set a target to connect 9.61 lakh farmers with natural farming in a phased manner, reiterated the Chief Minister. 'When the Congress came to power two and a half years ago, I observed that the farmers used to sell their land under compulsion just to repay the loan amount. We decided to help such farmers through the Interest Subvention Scheme, as a one-time settlement, especially for those facing land auctions', said the Chief Minister. He said that during the last two and a half years, a shifting trend has been witnessed in the agrarian economy, wherein farmers are shifting their focus towards natural farming. Farmers in large numbers across the state, have adopted chemical-free farming which is evident from the fact that over 2,23,000 farmers and horticulturists have adopted natural farming, either partially or fully in almost all the panchayats of the State. The state government has focused upon exploring options for additional income generation for farmers, ensuring fair prices for their produce, providing quality seeds, expanding and strengthening irrigation facilities, providing crop insurance, providing training and promoting agricultural research. This initiative reflects not only a commitment to the environment but also a dedication to empowering farmers and strengthening the rural economy, making Himachal Pradesh a pioneer in sustainable agricultural development, release said. The state government's proactive measures in providing fair pricing, expanding natural farming and supporting small farmers ensure a brighter future for Himachal Pradesh's farming community by bridging the gap between traditional farming practices and modern market demands, thus setting an example for the rest of the country, said the Chief Minister. (ANI)
United News of India
28-05-2025
- Business
- United News of India
Cabinet approves continuation of MISS for FY 2025-26
New Delhi, May 28 (UNI) The Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved continuation of Modified Interest Subvention Scheme (MISS) for FY 2025-26 with existing 1.5 percent Interest Subvention (IS). Addressing the media after the Cabinet meeting, Union Minister Ashwini Vaishnaw said, "The cost of working capital of the farmers has been reduced by the Interest Subvention Scheme. Special emphasis has been laid on providing a capital of Rs two lakh for an interest rate of four percent, under the scheme." MISS is a Central Sector Scheme aimed at ensuring the availability of short-term credit to farmers at an affordable interest rate through Kisan Credit card (KCC). Under this scheme, farmers received short-term loans of up to Rs three lakh through Kisan Credit Cards (KCC) at a subsidised interest rate of seven percent, with 1.5 percent interest subvention provided to eligible lending institutions. Moreover, farmers repaying loans promptly are eligible for an incentive of up to three percent as Prompt Repayment Incentive (PRI) effectively reducing their interest rate on KCC loans to four percent. For loans taken exclusively for animal husbandry or fisheries, the interest benefit is applicable up to Rs two lakh. However, no changes have been proposed in the structure or other components of the scheme. There are more than 7.75 crores of KCC accounts in the country. The continuation of this support is critical to sustaining the flow of institutional credit to agriculture, which is vital for enhancing productivity and ensuring financial inclusion for small and marginal farmers. Given the current lending cost trends, median MCLR and repo rate movements, retaining the interest subvention rate at 1.5 percent remains essential to support rural and cooperative banks and ensure continued access to low-cost credit for farmers. The Cabinet's decision reinforces the Government's unwavering commitment to doubling farmers' income, strengthening the rural credit ecosystem, and boosting agricultural growth through timely and affordable credit access. UNI RBE GNK 1618
Time of India
29-04-2025
- Business
- Time of India
Tariff war puts Rs 21,800 cr in MSME, mid-corporate loans at risk: Report
India Ratings warns that Rs 21,800 crore in loans to high-risk MSMEs and mid-corporates are threatened by worsening operating conditions due to the escalating tariff war. MSMEs, particularly in sectors like chemicals and textiles, face growing vulnerability. Mid-corporates possess a stronger financial buffer, but a slowdown in demand could severely impact MSMEs. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Loans worth Rs 21,800 crore borrowed by high-risk MSMEs and mid-corporates could be at risk as operating conditions continue to worsen due to the escalating tariff war, according to domestic rating agency India Ratings. The agency predicts that MSMEs will face growing vulnerability, particularly those in sectors like chemicals, textiles, steel, and industrial machinery, which are negatively impacted by the ongoing trade tensions.A study of 1,898 listed and unlisted MSMEs, along with 1,055 mid-sized corporations, indicates that mid-corporates have a stronger financial buffer against unexpected financial shocks. India Ratings attributes this resilience to their better financial metrics compared to the 1,898 MSMEs, 6% are classified as high-risk, with an interest coverage ratio of less than 1.1 times and leverage exceeding 5 times. These MSMEs have total outstanding debt of around Rs 8,100 crore, accounting for 16% of the total debt held by the MSMEs tracked by India 5% of mid-corporates fall into the high-risk category, with total outstanding debt of around Rs 13,700 crore as of FY24, comprising 11% of the total debt of the 1,055 mid-sized corporates tracked by the rating agency's analysis reveals that, as of March 31, 2024, 23% of MSMEs remain stressed, with an interest coverage ratio of less than 1.1 times, compared to only 11% for mid-corporates.'Capex intensity is usually low among MSMEs, as they struggle more with working capital issues and require adequate finance at competitive rates,' said Neermoy Shah, Associate Director of Emerging Corporates at India a slowdown in demand could severely impact MSMEs, a reduction in interest rates and improved liquidity could provide some relief. Capital expenditure (Capex) by MSMEs has picked up modestly post-COVID but still lags behind historical levels. The agency notes that the lack of improvement in MSMEs' coverage ratios and the increasing number of loss-making MSMEs underline their susceptibility to external sluggish consumption trends and the global economic slowdown, particularly in the wake of the intensified tariff war, are likely to exacerbate the operating and credit challenges faced by MSMEs, India Ratings the 1,898 MSMEs studied, 50% are operating with a return on equity (ROE) of less than 5%, reflecting subdued capex activity over the past decade. Government initiatives like the Interest Subvention Scheme and Credit Linked Capital Subsidy Scheme have only slightly boosted capex over the last three years.'Any potential slowdown in both global and domestic demand, driven by the escalation of tariff war 2.0, remains a key deterrent to further capex by MSMEs,' the rating agency concluded.
