Financial Assistance Scheme (FAS): Boosting Agriculture and Processed Foods Export Through APEDA

Understanding The Financial Assistance Scheme

3 major aspects are covered under the APEDA export promotion scheme 2021-2026: Quality Development, Market Development, and Infrastructure Development. So we shall go into these components a bit deeper.

Development of Export Infrastructure

This element covers both fresh produce and processed food products acknowledging their significance in infrastructure development for the growth of agro-based industries by reducing losses due to spoilage, as well as promoting quality production of agro commodities. We mention:

• Packhouse Facilities: These consist of packhouses with packing and grading lines that help maintain high-quality standards for fresh produce.

• Pre-Cooling Units: Pre-cooling units with cold storage and refrigerated transportation can be installed to help keep perishable items fresh.

• Cable Systems: They are devised for handling specific crops including bananas that facilitate efficiency as well as reduce damage.

• Common Infrastructure Facilities: This facilitates the collective export of several traders thereby optimizing resource utilization.

• Pre-Shipment Treatment Facilities: These are facilities such as irradiation centers for pre-shipment treatments like Vapour Heat Treatment (VHT), and Hot Water Dip Treatment (HWDT) to meet the Phyto-Sanitary requirements of importing countries.

• Processing Facilities: Equipment needed in processed food sector processing facilities such as X-ray machines or Screening, Sortex, filth/metal detectors, sensors, vibrators or any new technologies about food safety and quality requirements

Quality Development

To engage in international trade compliance with the Food Safety requirements of different countries is mandatory. Several importing countries require very low Maximum Residue Levels (MRLs). Such support has a ceiling of Rs. 600 lakhs and it is released against the bank guarantee provided.

Quality development assistance as rendered by APEDA includes the following:

• Quality and Food Safety Management Systems: Implementation & certification regarding quality and food safety management systems to meet international standards.

• Standardization and Harmonization: Efforts towards standardizing/harmonizing quality protocols with global benchmarks.

• Traceability Systems: These encompass handheld devices that are used in capturing farm-level peripheral coordinates, thus ensuring traceability from farm to market.

Beneficiaries of this component include APEDA-registered exporters, certification bodies accredited under the National Program for Organic Production (NPOP), state agencies, trade bodies, chambers of commerce, government agencies, FPOs, SHGs, FPCs, cooperatives and individual farmers. The cost will be borne up to 50% subject to a limit of Rs. 5 lakh to Rs. 20 lakh per certification.

Market Development

The market development support from APEDA includes assistance for activities such as feasibility studies on new markets/products. In terms of total costs incurred in these studies the assistance will be limited at 50% but not exceeding Rs.10 lakhs per study per beneficiary.

However, if undertaken by trade associations, Indian missions abroad central/state government departments or North-Eastern states` exporters located in difficult areas like Himalayan landlocked states Island Union Territories, SC/ST women beneficiaries etc., then the same would be up to 75%.

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