Markets Welcome Credit Policy Changes

Tamil Nadu Cotton Ginning Pressing Traders & Growers Federation president M Appuswami said, the removal of cotton and kapas from the selective credit controls will help the ginning and pressing units to get necessary pre-sale (inventory limits) and post-sale (bills limits) finance from banks, which will improve the liquidity position vis-a-vis profitability. This, he said, will strengthen the economic and financial viability of the ginning and pressing units and help draw long term plans.

Appuswami said speedy payments to the farmers and cotton growers will increase competition and help them to get proper prices. The vital link between the farmers and the fabric will be strengthened which will motivate the cotton growers to go in for extensive cultivation, increasing the production and employment. The government has made the ginning community a strong link between the farmer and the fabric.

 

Bombay Oilseeds & Oils Exchange Ltd president Navin Chandra Shah said, the removal of selective credit controls on bank advances against stocks of oils and vegetable oils is a bold and pragmatic decision. This will streamline marketing of the large new season oilseed crops and imported edible oils, which have been put on OGL since the last about two years.

He urged scrapping of the regulation on stock holdings by trade & industry constituents at any given time. The above regulation, prescribed under the Pulses, Edible Oilseeds & Edible Oils (storage control) Order, 1977, was out-dated, he said.

Shah allayed fears of hoarding saying there was adequate supplies of edible oils from the domestic market and imports.

He said, with economic liberalisation and the rapid increase in agricultural production, the limits on stocks have lost its raison detre and must be done awayased products.