Better to spend on MSP scheme than farm loan waiver: SBI report

Estimates combined cost for wheat, paddy, bajra & maize to be less than Rs.115 bln

by Nidhi Bhati

Centre’s proposed minimum support price (MSP) scheme is better than waiving loans of farmers, according to SBI’s Ecowrap report titled ‘Fears Regarding the MSP Scheme Are Exaggerated’. Terming the Rs.800 billion estimate for implementation of the proposed MSP scheme as exaggerated, the SBI report stated that on conservative basis, the estimate shows the combined cost for wheat, paddy, bajra and maize will be less than Rs.115 billion. The report further cautioned the government to monitor registration of the farmers under the scheme.

References
1. https://economictimes.indiatimes.com/news/economy/finance/msp-scheme-better-than-farm-loan-waiver-sbi-research-report/articleshow/62887295.cms
CMIE STATISTICS
Unemployment Rate
Per cent
5.1 +0.1
Consumer Sentiments Index
Base September-December 2015
95.4 0.0
Consumer Expectations Index
Base September-December 2015
95.4 0.0
Current Economic Conditions Index
Base September-December 2015
95.5 0.0
Quarterly CapeEx Aggregates
(Rs.trillion) Jun 17 Sep 17 Dec 17 Mar 18
New projects 2.40 1.35 1.30 2.42
Completed projects 0.87 1.22 1.06 1.27
Stalled projects 2.67 0.69 0.95 3.35
Revived projects 0.23 0.34 0.22 0.18
Implementation stalled projects 0.77 0.78 0.59 1.05
Updated on: 27 May 2018 4:20PM
Quarterly Financials of Listed Companies
(% change) Jun 17 Sep 17 Dec 17 Mar 18
All listed Companies
 Income 9.6 7.9 11.9 11.9
 Expenses 9.9 9.0 13.0 18.9
 Net profit -19.8 -18.1 -14.7 -83.2
 PAT margin (%) 5.3 5.5 4.8 1.1
 Count of Cos. 4,499 4,486 4,449 1,647
Non-financial Companies
 Income 10.2 8.2 13.2 13.6
 Expenses 10.5 8.1 12.4 14.0
 Net profit -25.1 -6.0 12.7 5.3
 PAT margin (%) 5.2 6.2 6.4 7.9
 Net fixed assets 9.2 14.5
 Current assets 78.6 10.4
 Current liabilities 11.0 11.0
 Borrowings 10.4 -4.4
 Reserves & surplus 5.2 10.6
 Count of Cos. 3,472 3,458 3,445 1,306
Numbers are net of P&E
Updated on: 27 May 2018 4:20PM
Annual Financials of All Companies
(% change) FY15 FY16 FY17 FY18
All Companies
 Income 5.6 1.8 5.5 3.6
 Expenses 5.7 1.9 5.5 2.8
 Net profit 0.0 -10.0 25.8 9.8
 PAT margin (%) 3.1 2.8 3.6 10.0
 Assets 9.5 10.1 7.1 7.1
 Net worth 8.5 11.3 6.6 5.1
 RONW (%) 5.8 4.9 6.0 15.5
 Count of Cos. 25,791 23,882 21,156 37
Non-financial Companies
 Income 4.8 0.9 5.3 3.0
 Expenses 5.0 0.3 5.6 2.0
 Net profit -8.2 19.0 20.5 10.6
 PAT margin (%) 2.0 2.4 3.0 8.7
 Net fixed assets 13.4 17.3 6.1 2.7
 Net worth 7.0 12.0 5.3 3.6
 RONW (%) 4.7 5.2 6.1 17.0
 Debt / Equity (times) 1.1 1.1 1.0 0.2
 Interest cover (times) 1.9 1.9 2.1 16.2
 Net working capital cycle (days) 66 65 62 27
 Count of Cos. 21,034 19,996 17,659 28
Numbers are net of P&E
Updated on: 20 May 2018 10:09PM

Time-series available from 2007-08 onwards