Agriculture Export Promotion Scheme

Agriculture Export Promotion Scheme

Agriculture Export Promotion Scheme

The Government of India has initiated Agricultural and Processed Food Products Export Development Authority (APEDA) under the Agricultural and Processed Food Products Export Development Authority Act, 1985. The primary objective of the scheme is mandated with the task of agro-industries development and export promotion of food products from the country. Under this scheme, the Government grants financial assistance to the exporters of the agricultural and processed food products. Let us look in detail about the Agriculture Export Promotion Scheme in this article.

To know about APEDA Registration

Eligibility Criteria

The firms must satisfy the following minimum criteria to avail the benefits under the Agriculture Export Promotion Scheme.

  • A consulting firm that is been registered with the minimum 10 years of experience in providing consultancy services in the field of market research, monitoring & evaluating studies, infrastructure development in the Public-private partnership (PPP) model etc. out of which five studies to be conducted in the domain of food and agribusiness.
  • The average annual turnover from the consultancy fee of 5 crores in the last 3 years.
  • The firm must have conducted at least 10 studies for the Central Government or State Governments Organizations in the past 3 years.
  • The minimum employee strength of consulting staff only (excluding the audit/tax or other administrative non-consulting divisions) of the applying firm in India must be at least 20.
  • The qualification of the key consulting staff must be at least 10 years who must have been on the payroll of the applying firm and also the CV has to be attached with the offer.
  • The consortia/tie-ups/Joint Ventures (JVs) are not permitted.

To know more about Agriculture Entrepreneurship Promotion Scheme – Click here

Documents Required

The applicant is required to submit the listed documents as applicable for the reimbursement of financial assistance, from the APEDA.

  • CA Certificate
  • Bank statement reflecting the details of debit entries of payment released to the foreign suppliers/vendors/suppliers and such entries must be highlighted.
  • The proper receipts from the foreign agencies/vendors/suppliers must be submitted.
  • Indemnity bond on INR 100/- Non Judicial Stamp Papers.
  • For movable assets/capital assets including civil construction etc must be reflecting the acknowledgement of the assistance amount of APEDA.
  • Installation certificate from the Chartered Engineer for the capital assets.
  • A copy of the feasibility study report
  • For imported equipment, the relevant document to be provided by the applicant.
  • For seminars/group activities, a detailed statement must also be submitted along with the photographs.
  • Audit surveillance format for the quality management systems
  • For laboratory equipment assistance, the biodata of the technician to be submitted.
  • For seminars/group activities, a report related to the specific activity for which the sanction is given duly certified by the Chartered Accountant/Utilization Certificate in case of the Government agency
  • Financial assistance for the organic products would be subject to the submission of valid Scope Certificate for processing facility given by an Accredited Certification Body under the NPOP.

Note: In case of any discrepancy clarification/required documents shall be sought from the applicant.

Components under the Scheme

Under the following three components of the Agricultural Export Promotion Scheme of APEDA, financial assistance is provided to the exporters:

  • Export Infrastructure Development
  • Quality Development
  • Market Development

Pattern of Assistance

Assistance is available for the establishment of post-harvest infrastructure for fresh horticulture produce.

Development of Export Infrastructure

S.No.

Sub-ComponentsScope

Pattern of Assistance

1.Integrated PackhouseImprove compliance of Phyto-Sanitary requirements.Up to 40% of the total amount subject to a cover of Rs.100 lakhs for each of the activities.
2.Purchase of insulated, mobile pre-cooling units/reefer transportCold Chain Strengthening
3.Cable handling method for banana and other cropsQuality improvement of Banana and other crops.
4.Processing facilities for Horticulture cropsEnhancing productivity, quality and efficiency for value-added products.
5.Purchase of insulated, mobile pre-cooling units/reefer transportCold Chain StrengtheningUp to 40% of the total amount subject to a cover of Rs.100 lakhs for each of the activities.
6.Processing facilities for addressing missing gapsEnhancing productivity/quality and efficiency for value-added products.

Quality Development

The compliance with the Food Safety provisions of different countries is a continuous process which is paramount in international trade. The installation of quality management systems, equipment, laboratory testing held devices for capturing farm level peripheral coordinates for traceability practices and testing of samples etc. helps in achieving such prescribed standards for the purpose of export.

S.No.

Sub-ComponentsScope

Pattern of Assistance

1.Implementation and Food Safety Management Systems and Certification of quality for all APEDA scheduled products.Adherence to Food safety compliance.Up to 40% of the total price subject to a cover of Rs.4 lakh per beneficiary.
2.Standardization, Harmonization with the International standards for the adoption of International Standards.Harmonization with the International standards including payment of a fee to the International auditors/inspectors.The component would be implemented by APEDA.
3.Procuring handheld devices including the cost of software for capturing farm level peripheral coordinates for the traceability systems.Registered exporters under the APEDA, certification bodies accredited under the National Program for Organic Production (NPOP) and APEDA approved laboratories are eligible under this componentUp to 40% of the total price subject to a cover of Rs.4 lakh per beneficiary.
4.Testing of the soil, water, residues of agrochemicals/pesticide, hormones, veterinary drugs, toxins, microbial count,  heavy metals, etc. in agricultural products where the monitoring activity is implemented by the APEDAEnsure the quality and food safety compliance (The assistance would be provided up to 3 years only)Up to 40% of the value subject to a cover of Rs.5000/- per sample. The upper cover per beneficiary: Rs.10 Lakhs during 3 years

Market Development

For evolving, structured marketing strategies are implemented through the Market Development component which involves the participation in the International trade fairs, exchange of trade organisations and organizing buyer-seller meets etc. This scheme component has served in achieving market access in new markets and also to maintain the presence in the existing markets.

S.No.

Sub-ComponentsScope

Pattern of Assistance

1.New Market/Product improvement through conducting  feasibility researchesIdentification of potential product/market40% of the total value subject to a cover of Rs.10 lakhs per study
2.Assistance for the trial shipment for new horticulture produceTo explore many new markets and further test market the new products/packaging.40% of the total value subject to a cover of Rs.5 lakhs per container/trip
3.Registration of Brand/IPR outside IndiaTo elevate brand image in the international market.40% of the total value subject to a cover of Rs.20 lakhs per study

Procedure for Filing of Application

The below following steps are the online procedure to apply for the Agriculture Export Promotion Scheme.

Step 1: The applicant can file online for the financial assistance through the Submit FAS Application under the Schemes tab that is visible on the home page of the APEDA website.

Note: A detailed proposal report containing the company profile, nature of the project, proposed infrastructure,  existing infrastructure, existing and proposed process flow chart benefit from the proposed facility in terms of capacity increase/quality up-gradation, intended market viability etc. The project cost to be duly supported by Quotations (for equipment), Bills of quantity (for civil work) etc.

Step 2: After successful submission of the scheme application a track number would be generated through the system. The applicant has to submit the slip of the scheme application submitted and a copy of the electronic acknowledgement receipt-bearing application Track Number along with the above mentioned relevant documents

Step 4: The date of submission of scheme application along with all required supporting documents in APEDA would be considered as the date of receipt of the application for allowance of In-Principle Approval.

The application form of Agriculture Export Promotion Scheme is reproduced below for the ready reference in PDF format.

Application of Agriculture Export Promotion Scheme

Procedure for Approval

Step 5: The proposals complete in all respect would be processed by the APEDA for the grant of In-Principle Approval except in the case of GAP certification and lab test analysis charges.

Step 6: APEDA or the agency authorized would conduct the physical verification of the applications related only to the creation of capital assets and provide a report/statement on the submitted application.

Step 7: All applications for financial assistance would be scrutinized by the Technical Committee. The Chairman, APEDA is the jurisdiction for deciding the composition of each of the Committee members and also for selecting any other Committee/Technical Committee and its composition, whenever needed.

Step 8: The proposals for the financial assistance up to Rs.1 crore would be approved by the Chairman, APEDA and proposal exceeding Rs.1 crore would be placed before APEDA authority for approval.

Step 9: The Technical Committee meeting would be conducted regularly whenever required (for at least once in 2 months). Subsequent to the permit of the competent authority, the letter containing

Step 10: In-Principle Approval (IPA) would be issued to the applicant. The Authority will be intimated of all the IPAs issued during the intervening period of last meeting and current meeting.

Upload Final Claim Documents

Step 11: It is the responsibility of the beneficiary to file the final claim documents/records complete in all respects before the expiry of the original/extended validity, if any, of the In-Principle Approval letter. For the financial support in the certain sub-components where IPA is not needed, the final claim documents and certificates would be submitted within a period of 3 months of the completion of the activity.

Applicable Fee

Step 12: As per the Government approval, 5% of the processing fees are deducted from all financial assistance amount extended under the various components and sub-components of the Scheme.

Verification Process

Step 13: Finally, upon the receipt of the claim, APEDA or the agency authorized by the APEDA would conduct physical verification of the capital assets, wherever applicable before the disbursement of assistance.

Step 14: The assistance amount would be released online through NEFT/RTGS to the beneficiary, direct in their bank account as per detail presented in the application.

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Post by Sinduja Shankar

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