Considering transport subsidy to states for promoting agri exports: Prabhu

The government is considering providing transport subsidy to states for promoting agriculture exports, Commerce Minister Suresh Prabhu said Thursday.

The issue of providing transport subsidy along with various other matters were discussed at the meeting of the Council for Trade Development and Promotion here, he added.

Representatives from several states including that of Karnataka, Punjab, and Tamil Nadu participated in the meeting.

"We are considering to give transport subsidy to states. It is under active consideration to promote agriculture exports," Prabhu told reporters here.

On credit issues being faced by exporters, he said, the financial services secretary would hold meeting with banks on the matter.

Lending to exporters should be treated as a priority sector credit as funding to them has declined significantly in the recent past, Prabhu added.

On trade with Iran, the minister said,"we have decided that without violating any international law we would work with Iran".

There was a significant progress in the trade ties between India and China, he added.