Food processing gets priority sector status

The measure would ensure easy availability of finance to the sector as 40 per cent of net bank credit should be directed towards priority sectors.

As a result, requirement of margin money from promoters would be smaller than the requirements of non-priority sector. Necessary orders, following a demand from the food processing ministry, had been issued by RBI to all scheduled commercial banks, the release said.

Flow of credit to the sector would be closely monitored as all banks were required to separately report credit made availableto areas under priority lending.