You are here: Home » News-IANS » Business-Economy
Business Standard

Studying transport subsidy for states to boost agri exports: Prabhu

IANS  |  New Delhi 

The Centre is looking at providing transport subsidy to states in a bid to promote agricultural exports, said on Thursday.

Speaking to reporters following a meeting here of the (CTDP), said that this was among the various issues discussed at the CTDP meeting.

"We are considering to give transport subsidy to states. It is under active consideration to promote agriculture exports," said.

Representatives from 10 states and union territories attended the meeting, while Ministers from Arunachal Pradesh, Assam, Karnataka, Odisha, Tamil Nadu, Punjab, Nagaland, Uttarakhand and addressed the participants, a release said.

Prabhu also said that the would meet with banks on credit issues being faced by exporters.

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

Meanwhile, the (EEPC) on Thursday said it has urged the RBI and the government to ensure timely and cheaper credit for the exporters, along with resolving the issues like closure of over two-year old shipping bills.

In a statement here, the EEPC noted that as per the (RBI) data, there has been a sharp annualised drop of over 54 per cent in the gross to the export sector.

"Against a gross credit deployment of Rs 434 billion (43.4 crore) till end October, 2017, the figures dropped by 54.6 per cent year on year to Rs 197 billion (19.4 crore) in 2018," EEPC said.

"While there may be several global factors such as trade war between the US and China, uncertainties over Brexit hitting the export demand, the cost of credit remains a big concern for us," said in a statement.

The exporters' body said subdued credit flow has been witnessed in the engineering segment as well.

"The year-on-year growth of the to the engineering sector could grow merely by 4.6 per cent by the end of October 2018," he said.

--IANS

bc/nir

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, January 10 2019. 21:30 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU