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

The Financial Assistance Scheme (FAS) is an export promotion initiative by the Agricultural and Processed Food Products Export Development Authority (APEDA) under the Ministry of Commerce and Industry. The program will run from 2021-22 to 2025-26, aiming to support agricultural trade by providing financial aid to exporters. This scheme addresses various challenges faced by agri-exporters and helps them overcome these challenges to achieve APEDA's goals.

Read More: APEDA’s Export Promotion Scheme For Agriculture And Processed Foods

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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Eligibility For APEDA Export Promotion Scheme

The eligibility for the APEDA financial assistance scheme is:

• APEDA-Registered Exporters: Under various components, exporters who are registered with APEDA are entitled to apply for assistance.

• Govt. Institutions: Assistance can be sought by central and state government institutions and public sector undertakings.

• Scheduled Products: All products that fall under the jurisdiction of APEDA qualify for it.

• Special Provisions: Assistance of up to 75% can be given to all the activities performed by exporters from North-Eastern states, difficult areas, SC/ST categories, and women entrepreneurs.

How To Apply For APEDA Financial Assistance

The procedure of application for this financial assistance scheme provided by APEDA includes several steps as follows:

• Online Application: Visit the official website of APEDA and fill in the online application form.

• Submission of Documents: Submit your documents together with your application within thirty days of online applications being submitted.

• Approval Process: The application will be reviewed by APEDA which may issue an In-Principle Approval (IPA) if it finds such necessary.

Read More: Boosting Global Trade: An Overview Of The Trade Infrastructure For Export Scheme (TIES)

Benefits Of The APEDA Scheme

What is more, one should also remember about services rendered by the APEDA scheme to processed food exporters along with other agricultural exporters like:

• Infrastructure Creation: There is support for establishing processing & supply chain infrastructure aimed at ensuring quality & safety of products.

• Quality Improvement: Implementation of quality systems and food safety management systems towards meeting international standards as well as gaining certification in these areas.

• Market Expansion: It also provides financial aid for new market/product development studies, trial shipments, and brand registration outside India.

Conclusion

The APEDA export promotion scheme 2021-2026 is a comprehensive initiative aimed at boosting agricultural and processed food exports from India. By providing funds for infrastructural development, quality enhancement, and market exploration among others; this organization seeks to assist exporters in overcoming barriers occasioned by international trade thus making them more competitive.

For more detailed information about the APEDA Financial Assistance Scheme, visit the official APEDA website or call 91-11-41486013 / 20863919 / 20867008 / 20867007.