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Transport and Marketing Assistance Scheme

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  • 11 Sep 2021
  • 4 min read

Why in News

Recently, the Ministry of Commerce and Industry has revised the Transport and Marketing Assistance (TMA) scheme for specified agriculture products.

  • It will be effected on or after 1st April, 2021, up to 31st March, 2022.

Key Points

  • About:
    • It was launched in 2019, for providing financial assistance for the transport and marketing of agricultural products to boost exports of such commodities to certain countries in Europe and North America.
      • In the year 2018, the government approved an Agriculture Export Policy with an aim to double the shipments to USD 60 billion by 2022.
      • APEDA (Agricultural and Processed Food Products Export Development Authority) works towards expanding the export potential of Indian agricultural and food products.
    • Under the TMA, the government reimburses a certain portion of freight charges and provides assistance for the marketing of agricultural produce.
      • The assistance, at notified rates, will be available for export of eligible agriculture products to the permissible countries, as specified from time to time.
    • The revised scheme has included dairy products among other agriculture products in its purview and increased the rates of assistance.
      • Rates of assistance have been increased, by 50% for exports by sea and 100% through the air.
    • TMA would be reimbursed through the Regional Authorities of DGFT (Directorate General of Foreign Trade).
  • Objective:
    • To provide assistance for the international component of freight and marketing of agricultural produce.
    • To mitigate the disadvantage of higher cost of transportation of export of specified agriculture products due to trans-shipment.
    • To promote brand recognition for Indian agricultural products in the specified overseas markets.

Agriculture Export Policy 2018

  • The vision of Agriculture Export Policy is to harness the export potential of Indian agriculture, through suitable policy instruments, to make India global power in agriculture and raise farmers income.
  • The Policy was approved with the objective,
    • To diversify the export basket, destinations and boost high value and value-added agricultural exports including a focus on perishables.
    • To promote novel, indigenous, organic, ethnic, traditional and non-traditional Agri products exports.
    • To provide an institutional mechanism for pursuing market access, tackling barriers and dealing with sanitary and phytosanitary issues.
    • Enable farmers to get the benefit of export opportunities in the overseas market.

Agricultural and Processed Food Products Export Development Authority

  • APEDA is a non-trading, statutory body established by the Government of India under the Agricultural and Processed Food Products Export Development Authority Act passed by the Parliament in December, 1985.
  • It functions under the Ministry of Commerce and Industry. The Authority has its headquarters in New Delhi.
  • It has been mandated with the responsibility of export promotion and development of the scheduled products viz. fruits, vegetables, meat products, dairy products, alcoholic and non-alcoholic beverages etc.
  • It has also been entrusted with the responsibility to monitor import of sugar.
  • In 2017, APEDA launched a mobile app- “Farmer Connect” to allow farmers to apply online to facilitate their farm registration, tracking the status of application & approvals by State Government and Lab sampling by authorized Laboratories.

Source: PIB

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