New Delhi, Feb 6 () Government has asked all export promotion councils to go cashless in respect of their payments to deal with the liquidity crunch post note ban, Commerce Minister Nirmala Sitharaman said today.
In November last year, the Commerce and MSME Ministry had met the export promotion councils (EPCs) to assess the impact of demonetisation on the country's exports.
"The government has received feedback from industry and trade associations. In order to mitigate their problem of liquidity crunch, the government has taken several measures, including one where all EPCs have been advised to go cashless in respect of their payments," Sitharaman said in a written reply in the Lok Sabha.
Furthermore, she said the coverage of the loans under the credit guarantee scheme for MSMEs implemented by the Credit Guarantee Fund Trust has been increased to Rs 2 crore from Rs 1 crore. The scheme has also been extended to loans for MSMEs by non-banking financial companies.
Sitharaman said the department of financial services has issued an advisory to banks to raise working capital and cash credit limit for MSMEs.
In reply to another question, she said Saudi Arabia has imposed a temporary ban on import of eggs and chicken from India due to the outbreak of avian influenza virus.
"The Royal Embassy of Saudi Arabia through their communication dated November 26, 2016, has informed that their Ministry of Environment, Water and Agriculture has decided to impose a temporary ban on import of live birds, hatching eggs and chickens from India due to the outbreak of highly pathogenic avian influenza," she said.
She also said the government is not considering creation of bird flu-free zone for export of poultry products.
"It is difficult to maintain bird flu-free zones as the zones may be contaminated by the wild bird as India is coming under the number of migratory bird's flyway. However, the department of Animal Husbandry, Dairying and Fisheries is recognising disease-free compartments of poultry establishment from where export of poultry and poultry products can take place," Sitharaman added.
To another query on whether the government is aware that large scale contract defaults and forced renegotiation of prices for pulses import is hurting India's trade image, she said: "No such matter regarding large scale contract defaults and forced negotiation of prices for import of pulses by private players has come to the notice of the government." JD ARD
Source: timesofindia.indiatimes.com