Bank Packing credit to exporters of Floriculture, Grapes and Other Agro-based Products

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.

Bank pre shipment loan to exporters of agri basedPacking 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.

Bank loans to exporters as packing credit

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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Deepanshu Gupta : As I would like to import tape from china, I would like to know whether I should ask for FOB or CIF.As someone told me to ask for FOB because in case of CIF it is expensive to release DELIVERY ORDER as told by agent. Is it so ? or the agent is duping me

Admin: Deepanshu Gupta, Terms of delivery can be decided buyer and seller, as per convenient of both. No expensive or less expensive issues.

chetan bachhav : I wish to start business in grape export. Currently, study is going on regarding market research and export related. It will be great if you can help.

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