Export Market Development Assistance Scheme (EMDA) for Jute Products

Export Market Development Assistance Scheme (EMDA) for Jute Products

Export Market Development Assistance Scheme (EMDA) for Jute Products

The Department of Commerce has stepped-up in support with the Marketing Development Assistance (MDA) to enable various measures to inspire and expand the country’s export trade. Due to the government’s interventions and guidance of Jute Technology Mission (JTM), there is a considerable increase in the production and export of jute goods. In this article, we will look into the details of Export Market Development Assistant Scheme and how the jute industry exporters can benefit from it.

Fundamentals of the Scheme

The Export Market Development Assistance (EMDA) encourages the manufacturers/exporters of jute products to take part in international fairs across the globe. Originated by National Jute Board (NJB), the EMDA enables the export promotion of lifestyle and other Jute Diversified Products (JDPs). The Export promotion of the Jute Diversified Products (JDPs) are done with the below objectives,

  1. To ensure the active participation in the fairs by the Micro, Small and Medium Entrepreneurs and JDP Manufacturer with their lifestyle jute products.
  2. To confirm effective marketing of the Lifestyle and JDP Jute products.
  3. To encourage B2B basis business opportunity to sellers and buyers with both to appreciate one another’s demands.
  4. To increase export by creating awareness about the International Quality of JDPs and Lifestyle jute products.
  5. To run the business with mutual relationship and agreed terms and conditions.

EMDA Scheme

Different segments of Lifestyle and JDP jute products are targeted in different markets with three different modes of participation as stated;

Exporters’ individual participation in well-recognized gift fairs/exhibitions for marketing their gift items. For example floor mats.

The National Jute Board (NJB) provides the support to new, existing and small entrepreneurs in building a strong platform by organizing export fairs and exhibitions.

  1. For the participation in export promotion activity Business Meet (BSM) is organized,
  2. To meet the business-delegation attending conferences abroad,
  3. To meet the Government authorities,

To display the participant’s ideas/products within the available options and sell them upon their decision making.

Significance of the Scheme

The Jute Corporation of India (JCI) buys raw jute at Minimum Support Price (MSP) fixed by the approval based on the Commission for Agricultural Cost and Prices (CACP) from jute growers to safeguard their interest, whenever the market price of raw jute falls. The Ministry of Textile states that there is an increase of 5 percent in the export of jute products in the last financial year. The sale growth in the Jute sector including in the domestic market will create employment to 225,000.

Participant’s Eligibility

  1. The participant can enrol in any one of the schemes undertaken by the Government of India (GOI) for any assistance/grant/ The Scheme will not support multiple receipts of assistance, if the Participant is acquiring the same earlier.
  2. To register as Manufacturer or Merchant Exporter of Jute products with Export Promotion Council (EPCs).
  3. A certificate of bonafide of the Jute Manufacturing/Export unit must be submitted to NJB for self-registration.
  4. The new entrepreneurs should have participated in the domestic sale of NJBs Retail Outlet Scheme in the past one year.
  5. Also, they should participate in the International Fairs under the NJB banner for the first time.
  6. The participant must apply to National Jute Board for NJB led fairs, delegations and BSMs.

The Government of India has a special focus with consideration for participants from North-Eastern states.

Participating in the Fair

The number of fairs that the participants can take part is stated below,

  • Existing participant/exporter/entrepreneur can participate for a maximum of six per year.
  • Participants must have attended a minimum of two fairs organized by the National Jute Board (NJB).
  • In the case of running multiple firms by a proprietor, then the above limit is applicable for all the firms.
  • A new entrepreneur is permitted under NJB banner and direct application will be allowed for the first two participations only.
  • Participation is permitted for three delegations/BSMs organized by the National Jute Board in a year.

Promotion of the Thrust Products

The Jute Diversified Products (JDP) that can be exhibited and promoted at the fair are,

  1. Hand and Shopping Bags,
  2. Floor Coverings,
  3. Home-Textiles & Made Ups,
  4. Jute handicrafts and Gift items,
  5. Other Made Ups, etc.

Support Provided to the Participants

The Scheme provides the following support to the participants and they can claim it by presenting the supporting documents.

Support extended for conducting the fairs:

  1. For an existing entrepreneur, 50% of the total eligible cost or equivalent of 3.75 lakhs will be provided as support under the Scheme.
  2. For new entrepreneurs who are participating under NJB for an international fair and NJBs Retail outlet scheme, where domestic sales are involved in past 1 year, the support is extended to:
    • 75% of 7.5 lakh i.e., Rs.5.63 Lakh/event or 75% of the Maximum Expenditure, whichever is less.
    • Organisations’ directors/partners who claimed the EMDA’s other organisation’s benefits from NJB will not be permitted.

The support extended to Delegations and BSMs attending the conference:

  1. 50% of air fare by economy class and 50% of hotel stay will be supported under the Scheme.
  2. The participants will be entitled to local conveyance limited to group travelling with the delegation.
  3. The entire cost will be provided for the arrangement of delegations, BSM and conference.
  4. Total support provided will be in the range of Rs 20-30 lakhs per visit, depending upon the destination.

How to Apply?

  • The Scheme’s support is in the form of reimbursement.
  • The interested participants should register themselves with NJB in advance in a format prescribed.
  • The applicants for the fair must apply to NJB online along with the participation fee of Rs.25,000 per fair.
  • The participants enrolling for Delegation/BSM will have to apply to the Jute Board along with the participation fee of Rs.10,000 for each business meeting.
  • Applicants will be debarred from future participation if they are not participating after getting a stall from NJB, and the participation fee will be with-held.
  • While applying to avail the support, the applicants Must submit three-year P&L Account Statement of the company with export revenue in Free on Board (FOB) value.
  • Should be a registered Jute Exporter and apply online in a format meant for the purpose.  The online application should be submitted 3 months prior to the event’s start date.
  • Submit Original Business Activity Report and FOB value of the exports for the last three years along with supporting documents within 60 days from the completion of the event.
  • Exporters should submit the Chartered Accountant Statement supporting to their deputed company.
  • Assistance is permissible to regular employee/director/partner/proprietor of the company.
  • Assistance is not available to exporter of foreign nationality or holding a foreign passport.

All the Claims will be settled within 45 days of the valid submission of the reports.

Post by Arnold Thomas

IndiaFilings is India's largest online compliance services platform dedicated to helping people start and grow their business, at an affordable cost. We were started in 2014 with the mission of making it easier for Entrepreneurs to start their business. We have since helped start and operate tens of thousands of businesses by offering a range of business services. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.