However, consumerism and demographic pluses will pull up all 25 sub-sectors of food processing to bounce back strongly and can be the flag bearer for the economy. As a thumb rule, Banks to extend adhoc increases of 25% of all working capital limits for all “standard" (not NPA) food processing companies, irrespective of their size across the Board for 12months on existing collaterals. Finally, RBI has to focus on the widening credit gap ( ₹2lac crores last count) in food processing and incentivize Banks to lend. For one, food processing should have its own separate 5% quota in the overall 40% priority sector credit quota instead of including it in overall 18% agriculture credit quota. Like India, food processing sector is destined to grow!

Source: Mint April 14, 2020 15:11 UTC