Who gives financial assistance to agricultural industries?

Who gives financial assistance to agricultural industries?

Introduction

The Government of India supports the agricultural sector through a number of financial bodies. This can be done by providing loans and subsidies to farmers, increasing market access and improving productivity in order to increase food supply.

Foreign Trade Development and Regulation Act

The Foreign Trade Development and Regulation Act (FTDA) is a legislation passed by the Parliament of India. Its aim is to promote and regulate the exports of goods and services from India, as well as imports into India. It also aims to provide for matters connected therewith or incidental thereto

Export Import Bank of India

The Export Import Bank of India (Exim Bank) was established in 1969 to help exporters by extending credit facilities to them at concessional rates. It provides loans, guarantees and insurance cover against risks arising out of sales contracts, inventory or transportable equipment.

The Exim Bank has been providing various kinds of financial assistance to Indian industries since its inception. In recent times it has initiated several new schemes for supporting agricultural exports including:

  • No Interest Loans for Short Term Rice Cultivation Activities;
  • Extension & Rehabilitation Package for Small Scale Fisheries;
  • Micro Irrigation Schemes with Low Cost Soil Preparation Tools;

Financial Institutions Supported by Government

  • The Government of India supports agricultural exports through a number of financial bodies so that the sector can grow and farmers’ incomes can increase.
  • The Export Import Bank of India (Exim Bank), for example, is a financial institution that provides long-term loans and guarantees to exporters and importers. It also offers working capital facilities to small businesses in order to help them get their products into international markets.
  • The Government of India supports agricultural exports through a number of financial bodies so that the sector can grow and farmers’ incomes can increase.
  • The Government of India supports agricultural exports through a number of financial bodies so that the sector can grow and farmers’ incomes can increase.
  • Export Credit Guarantee Corporation (ECGC) provides insurance and credit guarantees to exporters on their foreign trade transactions; it is a part of State Bank of India (SBI).
  • It operates under the Foreign Trade Development & Regulation Act, 1994 (FTDA).

Conclusion

The Government of India has a number of financial institutions that help farmers in different ways. These include export credit guarantee schemes from the Export-Import Bank of India, which helps exporters get financing for their raw materials, and specialised development banks such as new national agricultural finance corporation (Nafcor), which provides loans to small and marginal farmers.

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