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
6.1 +0.1
Consumer Sentiments Index
Base September-December 2015
100.6 0.0
Consumer Expectations Index
Base September-December 2015
99.7 0.0
Current Economic Conditions Index
Base September-December 2015
98.2 0.0
Quarterly CapeEx Aggregates
(Rs.trillion) Sep 17 Dec 17 Mar 18 Jun 18
New projects 1.25 1.51 3.42 2.32
Completed projects 1.25 1.16 1.56 0.91
Stalled projects 0.69 0.88 3.44 0.30
Revived projects 0.34 0.24 0.26 0.22
Implementation stalled projects 0.78 0.71 1.92 0.04
Updated on: 14 Aug 2018 4:20PM
Quarterly Financials of Listed Companies
(% change) Sep 17 Dec 17 Mar 18 Jun 18
All listed Companies
 Income 7.9 12.0 9.7 16.9
 Expenses 9.0 13.0 16.2 20.2
 Net profit -18.0 -14.3 -80.3 5.5
 PAT margin (%) 5.5 4.8 1.2 6.1
 Count of Cos. 4,508 4,503 4,325 2,657
Non-financial Companies
 Income 8.2 13.3 11.1 19.2
 Expenses 8.2 12.4 11.7 21.6
 Net profit -6.0 13.2 1.6 31.4
 PAT margin (%) 6.2 6.4 6.6 7.7
 Net fixed assets 9.2 11.8
 Current assets 2.9 7.2
 Current liabilities 11.0 10.4
 Borrowings 3.4 1.9
 Reserves & surplus 7.9 7.2
 Count of Cos. 3,464 3,471 3,347 2,098
Numbers are net of P&E
Updated on: 14 Aug 2018 4:21PM
Annual Financials of All Companies
(% change) FY15 FY16 FY17 FY18
All Companies
 Income 5.6 1.8 6.0 9.9
 Expenses 5.7 1.9 6.0 13.3
 Net profit 0.1 -9.7 25.8 -37.5
 PAT margin (%) 3.0 2.8 3.5 4.2
 Assets 9.5 10.2 7.5 13.2
 Net worth 8.5 11.3 7.7 12.8
 RONW (%) 5.8 4.9 5.8 5.7
 Count of Cos. 26,178 24,474 22,051 749
Non-financial Companies
 Income 4.9 1.0 5.8 8.5
 Expenses 5.1 0.4 6.1 8.0
 Net profit -9.4 19.9 20.7 6.6
 PAT margin (%) 2.0 2.4 3.0 9.3
 Net fixed assets 13.3 17.9 6.7 27.6
 Net worth 7.0 12.0 6.6 9.7
 RONW (%) 4.6 5.1 5.9 13.2
 Debt / Equity (times) 1.1 1.1 1.0 0.4
 Interest cover (times) 1.9 1.9 2.1 6.2
 Net working capital cycle (days) 66 65 62 8
 Count of Cos. 21,351 20,488 18,371 585
Numbers are net of P&E
Updated on: 12 Aug 2018 11:30AM