In terms of para AI(VI) of BCD Circular No.5
of 5th July, 1987 advances against raw materials to manufacturing/processing
units of goods is permissible with minimum margin requirements
of 25%. It is clarified that advances to
flour mills against wheat and wheat flour also fall in above
category. However, the maximum period of advance against wheat
and flour should not exceed period of six months.
Please acknowledge receipt.
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