Govt to find solution to exporters' concerns.

Commerce and Industry Minister Anand Sharma has assured exporters that their concerns over the cost of credit under the new base rate regime will be addressed soon.
"I am sure we will find solution (to the exporters concern on cost of credit)," Sharma said after meeting Finance Minister Pranab Mukherjee in New Delhi.
Before the base rate regime kicked in from 1st July, exporters were getting concessional credit, which was 250 basis points below the then benchmark rate.
However, in the new benchmark scheme, bankers are not expected to give credit below the base rate, except for certain labour sensitive exports.
"He (Mukherjee) is sensitive to these issues and hopefully solutions will soon come," Sharma added.
From 1st July this year, every bank has to announce its base rate, which is a kind of minimum interest rate.
As such, the issue is how the concessional rate for export credit could be fit into this system.
The Reserve Bank has, however, allowed banks to give credit below the base rate to exporters of handicrafts, carpets, handlooms and SMEs, provided it does not stretch less than seven percent.
The government provides subvention to banks for cheaper credit to exporters, who have been facing tough times because of slack demand in overseas markets.
The Federation of Indian Exports Organisations said exporters should get credit on economical rates to compete in the global markets.
They were earlier getting credit at an interest rate between 8 and 9 percent, it said.
India's exports were impacted severely following the collapse of financial behemoth Lehman Brothers in September, 2008.
However, the overseas shipments have recovered since November, 2009, and were up 35 percent in May this year.

Source : Central Chronicle