APEDA Subsidy Scheme

1. FINANCIAL ASSISTANCE UNDER AGRICULTURE AND PROCESSED FOODS EXPORT PROMOTION SCHEME OF APEDA

The Financial Assistance Scheme (FAS) is an export promotion scheme run by APEDA Subsidy. 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 objectives of APEDA.
• Financial assistance is provided in three broad areas, namely: Development of Export
• Infrastructure, Quality Development and Market Development.

Development of Export Infrastructure

1. Infrastructure such as pack house facilities with packing/grading lines
2. Pre- cooling units with cold storages and refrigerated transportation etc.
3. Cable system for handling of crops like banana
4. Common infrastructure facilities
5. Pre-shipment treatment facilities such as irradiation, Vapour Heat Treatment (VHT), Ho Water Dip Treatment (HWDT) for compliance to Phyto-Sanitary requirements of importing countries
6. 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

• · Installation of quality management systems,
• · Laboratory testing equipment,
• · Hand held devices for capturing farm level peripheral coordinates for traceability systems and testing of samples etc.
• · Testing of water, soil, residues or pesticides, veterinary drugs, hormones, toxins, heavy metal, contaminants etc.

Market Development

• Participation in International trade fairs

• Exchange of trade delegations
•  Organizing buyer seller meets
• Developing packaging standards for new products and upgrading the existing standards

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Financial Assistance Under Agriculture And Processed Foods Export Promotion Scheme

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2. Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)

Background

• The food processing sector in India encompasses manufacturing enterprises in all the segments from micro to large industries.
• India is having competitive advantage in terms of resource endowment, large domestic market and scope for promoting value added products.
• Achieving full potential of this sector would require Indian companies to improve their competitive strength vis-à-vis their global counterpart in term of scale of output, productivity, value addition and their linkages with the global value chain.
• The Production Linked Incentive Scheme for Food Processing Industry has been formulated based on the Production Linked incentive scheme of NITI Aayog under “AatmaNirbhar Bharat Abhiyaan for Enhancing India’s Manufacturing Capabilities and Enhancing Exports”

Salient features:

• Central Sector Scheme with an outlay of Rs. 10900 crore
• The first component relates to incentivising manufacturing of four major food product segments viz. Ready to Cook/ Ready to Eat (RTC/ RTE) foods including Millets based products, Processed Fruits & Vegetables, Marine Products, Mozzarella Cheese.
• Innovative/ Organic products of SMEs including Free Range – Eggs, Poultry Meat, Egg Products in these segments are also covered under above component.
• The selected applicant will be required to undertake investment, as quoted in their Application (Subject to the prescribed minimum) in Plant & Machinery in the first two years i.e. in 2021-22 & 2022-23.
• Investment made in 2020-21 also to be counted for meeting the mandated investment.
• The conditions of stipulated Minimum Sales and mandated investment will not be applicable for entities selected for making innovative/ organic products.
• The second component relates to support for branding and marketing abroad to incentivise emergence of strong Indian brands.
• For promotion of Indian Brand abroad, the scheme envisages grant to the applicant entities for – in store Branding, shelf space renting and marketing.
• Scheme will be implemented over a six year period from 2021-22 to 2026-27.

Read More :

Guidelines on Production Linked Incentive (PLI) Scheme for Food Processing Industry