Financial Assistance Scheme (FAS) APEDA

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

The scheme is created keeping in account three pillars. i.e., Infrastructure development, Quality development, and Market development. The scheme also aims to align Indian exporters with international standards, enabling them to operate more effectively. The overall aim of the scheme is to enhance the agri-export ecosystem and improve India’s standing in the global export market.

Read the article to learn about the APEDA export subsidy scheme details, like its meaning, benefits, eligibility criteria, and application process, including answers to questions, like ‘How APEDA financial assistance works?’

Understanding The APEDA 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 optimising resource utilisation.

• Pre-Shipment Treatment Facilities: These are facilities such as irradiation centres 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.

• Standardisation and Harmonisation: Efforts towards standardising/harmonising 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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What Is The Eligibility Criteria For The APEDA Export Promotion Scheme?

Individuals are required to comply with all the eligibility criteria to apply for the government scheme. The APEDA scheme eligibility 2026 is as follows:

• APEDA-Registered Exporters: Under various components, APEDA-registered exporters are eligible 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 APEDA's jurisdiction 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.

What Are The Documents Required While Applying For The APEDA Financial Assistance Scheme?

Individuals who meet the eligibility criteria for the Agriculture Export Financial Support India scheme have to attach some supporting documents. The list of documents is as follows:

• Aadhaar card

• PAN card

• Import Export Code Certificate

• Bank account details

• GST registration certificate

• Detailed project report

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