Union Cabinet Approves MSME, farmer and street vendor stimulus packages

New Delhi : The Union Cabinet on Monday approved the modalities and road map for implementing the micro, small and medium enterprises (MSMEs), farmer and street vendor package that was last month announced as part of the ₹20 trillion stimulus to restart a teetering economy.

The cabinet committee on economic affairs (CCEA) chaired by Prime Minister Narendra Modi also approved the increase in the Minimum Support Prices (MSPs) for 14 crops that are 50%-83% higher than the cost of cultivation in an effort to put more money in the hands of farmers.

The other decision included a loan of Rs10,000 which is likely to benefit nearly 50 lakh street vendors called Svanidhi or Street Vendors Aatmanirbhar Nidhi (self reliant fund).

This comes in the backdrop of the government reaching out to financially weaker sections, migrant workers and farmers, amid growing criticism that the lockdown, while necessary, was unplanned, resulting in a mass migration, the biggest since partition.