Agriculture And Processed Foods Export Promotion Scheme Of APEDA For The 15th Finance Commission Cycle (2021-22 To 2025-26)

DETAILS The Financial Assistance Scheme (FAS) is an export promotion scheme run by APEDA. APEDA is an export promotion body under the Ministry of Commerce and Industry for the promotion of Agricultural and Processed Food Products. The scheme has been open and implemented for the period of 2021-22 to 2025-26. The scheme aims to facilitate the export of agri-products by providing assistance to exporters. It achieves its objective through the following: Understanding the several challenges faced by agri-exporters. Acknowledging the need for assistance to successfully navigate through these challenges and achieve the objectives of APEDA. Financial assistance is provided in three broad areas, namely: Development of Export Infrastructure Infrastructure, Quality Development and Market Development. The details of each scheme such as scheme name, launch date, ministry/dept. name, scope, objectives, salient features, target beneficiary, benefits, etc. are as follows: Development of Export Infrastructure: APEDA recognizes the importance of infrastructure for the growth of agro-industries and the export of agricultural products in the value chain. The scheme component covers both fresh produce and processed food products. The objective of the scheme is to reduce losses caused due to spoilage and to ensure quality production of agro products. To achieve this, it seeks to set up post-harvest handling facilities. Under this component, assistance is provided for the following: Infrastructure such as packhouse facilities with packing/grading lines Pre-cooling units with cold storage and refrigerated transportation etc. Cable system for handling crops like banana Common infrastructure facilities Pre-shipment treatment facilities such as irradiation, Vapour Heat Treatment (VHT), and Hot Water Dip Treatment (HWDT) for compliance with Phyto-Sanitary requirements of importing countries Infrastructure for processing facilities (process food sector) for addressing missing gaps which may include equipment like X-ray, Screening, Sortex, filth/metal detector, sensors, vibrators, or any new equipment or technology for food safety and quality requirements. Quality Development: To participate/engage in international trade, it is necessary to comply with the Food Safety requirements of different countries. Several importing countries demand adherence to stringent Maximum Residue Levels (MRLs). Some of the developed importing countries have set up MRLs at a very low level. For this, high to a ceiling of Rs. 600 lakhs. The funds shall be released against the bank guarantee. Quality Development Scheme: Implementation and certification of quality and food safety management systems, standardization, harmonization with international standards for adoption of global standards, and handheld devices for capturing farm-level peripheral coordinates for traceability systems. Beneficiaries: APEDA registered exporters are eligible to apply for assistance, Certification Bodies accredited under the National Program for Organic Production (NPOP), State Agencies, trade bodies, Chambers of Commerce, Government agencies, FPO, SHG, FPC, Cooperatives, and individual farmers and listed laboratories are eligible for assistance. Benefits: The assistance will be upto50% of the total cost subject to a ceiling of Rs. 5 lakh and 20 lakh per certification. The assistance will also be applicable for the renewal of certifications. The 20 lakh are applicable as in the case of Procuring hand-held devices including the cost of software for capturing farm-level peripheral coordinates for traceability systems. This will include any electronic management system, software, blockchain, Artificial Intelligence (AI), or any other high-precision technology. Market Development: Beneficiaries: It includes APEDA registered exporters, trade delegations, promoters of GI products, Central/State Govt. agencies, Trade chambers, Indian missions abroad, etc. Benefits: The benefits and their components would be decided and implemented by APEDA. As in the case of New Market / Product development through conducting feasibility studies. There are two criteria Assistance will be up to 50% of the total cost subject to a ceiling of Rs. 10 lakhs per study per beneficiary. Assistance will be up to 75% of the total cost subject to a ceiling of Rs. 10 lakhs per study per beneficiary if conducted by Trade Associations/Indian missions abroad/Central/State Govt. agencies/ exporters belonging to North - Eastern States, difficult areas namely Himalayan and landlocked states, Island Union Territories, SC/ST, and women beneficiaries. For activities initiated by APEDA, the funding shall be 100% As in the case of Assistance for trial shipment covering multimodal transport. Assistance will be up to 50% of the total cost subject to a ceiling of Rs. 10 lakhs as in the case of Registration of Brand / IPR outside India. Assistance will be upto50% of the total cost subject to a ceiling of Rs. 20 lakhs per beneficiary 100% in the case of APEDA. BENEFITS Development of Export Infrastructure: Assistance for the Establishment of Processing and Supply Chain Infrastructure: Benefits: 1. The assistance will be up to 40% subject to a ceiling of ₹200 lakhs. 2. The assistance will be up to 90% of the approved cost subject as in the case of assistance under 1(f), as per Operational Guidelines of APEDA. ELIGIBILITY 1. APEDA registered Exporters are eligible to apply for assistance under 1(a)-(e) Central and state government institutions and public sector enterprises are eligible to apply for assistance under 1(f), as per Operational Guidelines of APEDA. 2. Assistance will be applicable for all APEDA scheduled products. 3. The date of submission of the online application in APEDA shall be considered as the date of receipt of the application for grant of In Principle Approval. The expenditure incurred prior to the date of submission of the online application in APEDA shall not be considered for assistance. However, any expenditure incurred after submission of the online application but before issuance of IPA shall not automatically become eligible for assistance and shall be subject to the final decision of APEDA taken in this regard. 4. In the case of exporters belonging to North-Eastern states, difficult areas namely Himalayan and land-locked states, Island Union Territories, SC/ST, and women beneficiaries, the assistance will be up to 75% for all activities. However, overall financial ceiling limits in all cases shall remain the same. 5. The following exporters shall be deemed to fall under the SC/ST category: a) In case of a proprietary concern, the proprietor shall be SC/ST. b) In the case of a partnership firm, the SC/ST partners shall be holding at least 51% shares in the unit.* c) In the case of private limited companies/Limited Liability Partnership (LLP)/Farmer Producer Companies (FPCs), at least 51% of shares shall be held by SC/ST directors/promoters.* (*The partner/director/promoter should hold at least 51% share in the unit for the preceding one year of application for financial assistance and the holdings of SC/ST partner/promoter/director shall remain at least 51% for the subsequent period of at least two years of reimbursement of the financial assistance. In this regard, an undertaking has to be submitted by the applicant.) 6. The following exporters shall be deemed to fall under the Women Entrepreneur category a) The concern should be in existence for at least one year b) In case of a proprietary concern, the proprietor shall be a woman c) In the case of partnership firms/FPOs/FPCs/LLP/Private Limited companies, all the partners/directors/promoters shall be women. 7. For organic products, the unit should have scope for processing under the NPOP requirements 8. APEDA shall charge a processing fee as approved by the Department of Commerce (DoC), Ministry of Commerce and Industry, Government of India on the disbursed amount which is presently 5% + GST as applicable. The processing fee shall be deducted at the time of release of funds to the applicant. 9. The assistance under the Financial Assistance Scheme of APEDA is available to register exporters or other organizations such as Central/State agencies, FPOs, etc. for APEDA Scheduled Products. 10. The application should be accompanied by the following documents duly self-certified. It should be submitted physically within 30 days from the date of the online application otherwise, the application will be cancelled. 11. For the purchase of new equipment, quotation/ proforma invoice/ bills should be obtained from a minimum of three Original Equipment Manufacturers (OEM) or their authorized distributor/ dealer of the equipment. The quotations shall be sought from a minimum of 3 suppliers. The applicant is free to place a work order at any of the three bidders however, APEDA’s assistance shall be computed on the lowest quoted rate. 12. In case of a feasibility st