The Atmanirbhar Bharat mission and the “Vocal for Local” movement has been the recent highlights announced immediately during the Lockdown 3.0
Under these announcement, several important points have been made that can indirectly and directly benefit the spice manufacturers in India
The Government of India has announced a massive package of 20 Lakh Crore Rupees under it’s mission of Atmanirbhar Bharat that is, making India independent and self-reliant country.
What is in it for the spice manufacturers ?
In the press conference addressed by Nirmala Sitharaman just a few days ago, she highlighted some key points and reforms that were made for benefiting the MSME sector of India.
MSME stands for Micro, Small and Medium Enterprises that includes a majority of the businesses in India – Spice manufacturing businesses are mostly under the MSME sector.
In the announcement, Sitharaman has addressed that MSME sector will get several benefits in these difficult times of Covid-19 pandemic.
#1. 3-Lakh Crore worth loans for MSME
Out of the 20 Lakh Crore package announced, an amount worth 3 Lakh Crore would be used in providing collateral-free loans for MSME sectors.
Banks will offer upto 20% of Credit to the businesses that have already taken up loans, without the need of providing fresh collateral security to the banks.
The scheme can be availed from October 31, 2020 and businesses having upto 25 Crore outstanding credits / loans and a turnover upto 100 Crore can take the advantage of Collateral Free loans.
Spice manufacturers who are already running a business of producing packaged spice products can definitely avail the benefit of taking up the loans and re-igniting their business potentials.
#2. Redefining MSMEs
The previous definition of MSME has been modified and turned into a more liberal and beneficial definition by the Government.
The table below shows the comparison of how MSMEs were defined earlier and how MSMEs would be defined now onward.
This change is a huge benefit for spice manufacturers as they can now easily approach as a Micro or Small business even when their turnover figures are high.
Businesses coming under micro / small enterprise have huge benefits pertaining to loans.
#3. Disallowance of Global Tenders
Global Tenders in the country for the projects worth upto 200 Crore would be disallowed by the Government.
This step is taken for the purpose of boosting the major economic backbone of the country, the MSMEs, and making them more strong.
Spice traders and manufacturers can always keep a check on new updates related to tenders in the spice industry on the spice board website.
The Spices Board of India has a lot of new opportunities opening for the businesses and it highlight all of it in the immediate “News” section in the homepage of the website.
#4. Government soon to establish E-market for MSMEs
Due to the pandemic, the Government has been forced to revolutionize and transform the old methods of marketing MSMEs.
An E-market as per the reports, has been under development that will help all the businesses including the spice manufacturing units and spice traders / exporters, to highlight their business all around the world.
This would remove the requirements of visiting trade-fairs and exhibitions that can sometimes turn out to be an expensive and less of a fruitful option for spice businesses.
You can watch the entire press conference address by the honorable finance minister, Shree Nirmala Sitharaman below.
Although the benefits for the MSME sector seem to be less, especially for the small-scale spice manufacturing businesses, there will be coming a wave of new opportunities for collaboration and firm establishments for all spice manufacturing units in India.
The Government has taken very promising steps that will certainly improve all businesses in terms of liquidity and growth.
If you’re among those spice traders / exporters who are thinking to get into the manufacturing business, now is the time.
The Government is openly embracing new ventures and is trying really in its best capacity to enhance and grow these startup businesses in India.