Exim Bank identifies agri business as focus area

Exim Bank has identified agri-exports as a focus area and has established an 'Agri-Business Group'. Through the initiative, the bank plans to support the sector with term finance for food processing, floriculture, fruits and vegetables and contract farming.

According to a senior bank official, pre-shipment/post-shipment credit will also be extended to finance exports of a wide range of agri-based products.

The exports will include basmati rice, wheat, sugar, coffee, maize, cattle feed, groundnut kernels, herbal extracts, cashew, sesame seeds, mushrooms, gherkins, fresh fruits and vegetables.

For these products, the bank is targeting markets like the US, Japan, Korea, Singapore, South Africa and UAE, he added. With the agri business group in place, sanctions and disbursements during 2004-05 aggregated Rs 582 crore and Rs 495 crore, respectively.

To strengthen linkages with the stakeholders in the sector such as Nabard, Agricultural and Processed Food Products Export Development Authority, Agricultural Finance Corporation, Central Food Technological Research Institute, National Horticultural Board and Small Farmers' Agri-Business Consortium, the bank plans to leverage their respective strengths to augment exports of agricultural products from India.

The bank recently signed a memorandum of understanding (MoU) with the Central Food Technological Research Institute (CFTRI), Mysore to promote small-scale food processing projects in Africa and the CIS region.

To help commercialise CFTRI technologies, the bank is bringing out a publication titled 'Market Maker: Technology-aided Business Solutions' containing project profiles in the food processing sector.

Another publication, titled 'Agri Export Advantage', is a bi-monthly publication brought out in English, Hindi and 10 regional languages to provide updates on World Trade Organisation (WTO)-related issues, government schemes/assistance available for agro-based products, international events and bank's initiatives in agri-business.

"The publication also includes global market analysis for various agri-products and information on agri-products having high export potential. The publication has attained wide readership in India and overseas among farmer groups, government departments, corporates engaged in agri-related business activities, research institutions, academic institutions, NGOs and various councils and embassies," said the official.