Are exporters of Floriculture, Grapes and Other Agro-based Products eligible for pre shipment finance?
This post explains about the pre shipment finance provided by banks to help exporters of grapes,floriculture and other similar agro based products.
Packing credit can be availed from bank for exporters of grapes, floriculture and other similar agro based products to purchase cut-flowers etc. and all post-harvest expenses incurred for making shipment.
However, with a view to promoting export of floriculture, grapes and other agro-based products, banks are allowed to extend concessional credit for working capital purposes in respect of export-related activities of all agro-based products including purchase of fertilizers, pesticides and other inputs for growing of flowers, grapes etc, provided banks are in a position to clearly identify such activities as export-related and satisfy themselves of the export potential thereof, and that the activities are not covered by direct/indirect finance schemes of NABARD or any other agency, subject to the normal terms & conditions relating to packing credit such as period, quantum, liquidation etc.
Export credit should not be extended for investments, such as, import of foreign technology, equipment, land development etc. or any other item which cannot be regarded as working capital.
I hope, this article about pre shipment credit helps floriculture exporters, grapes exporters and other similar agro based products exporters to have a basic idea about packing credit finance facility from banks under the guidelines of reserve bank.
Would you like to add more information about pre shipment loan from bank to exporters of grapes,floriculture and other similar agro based products? Share below your experience in availing packing credit from bank.
Comment below your thoughts about pre shipment credit to floriculture exporters, grapes exporters and other similar agro based products exporters.
The above information is a part of Import Export Training course online
Click here to go back to: Bank finance to exporters against Pre shipment and Post shipment.
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