What are the guidelines for Availing the Agriculture and Processed Foods Export Promotion Scheme Financial Assistance – APEDA?

APEDA helps exporters under the Scheme of  Agricultural & Processed Food Products Export Promotion Scheme. Here are the steps and guidelines for availing of the scheme:

1. Development of Export Infrastructure

APEDA recognizes the importance of infrastructure for the growth of Agro-Industries and the export of agricultural products in the value chain. The scheme component covers both fresh produce and processed food products. The objective of the scheme is to reduce losses caused due to spoilage and to ensure quality production of Agro products. To achieve this, it seeks to set up post-harvest handling facilities. Under this component, assistance is provided for the following:

• Infrastructure such as packhouse facilities with packing/grading lines
• Pre-cooling units with cold storage and refrigerated transportation etc.
• Cable system for handling of crops like banana
• Common infrastructure facilities
• Pre-shipment treatment facilities such as irradiation, Vapour Heat Treatment (VHT), Hot Water Dip Treatment (HWDT) for compliance to Phyto-Sanitary requirements of importing countries
• 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

All the products covered under the traceability system for Organic are also eligible under the Scheme along with APEDA scheduled products.

GENERAL REQUIREMENTS AND CONDITIONS (across all components)

1. GENERAL CONDITIONS
   1. Assistance will be applicable for all APEDA scheduled products.
   2. The date of submission of online application in APEDA shall be considered as the date of receipt of an application for grant of In-Principle Approval. The expenditure incurred prior to the date of submission of the online application in APEDA shall not be considered for assistance. However, any expenditure incurred after submission of the online application but before issuance of IPA shall not automatically become eligible for assistance and shall be subject to the final decision of APEDA taken in this regard.
   3. In the case of exporters belonging to North – Eastern States, difficult areas namely Himalayan and landlocked states, Island Union Territories, SC/ST, and women beneficiaries, the assistance will be up to 75% for all activities. However, overall financial ceiling limits in all cases shall remain the same.
   4. Following exporters shall be deemed to fall under SC/ST category :
      1. In case of a proprietary concern, the proprietor shall be SC/ST
      2. In the case of a partnership firm, the SC/ST partners shall be held at least 51% shares in the unit.*
      3. In case of private limited companies/Limited Liability Partnership (LLP)/Farmer Producer Companies (FPCs), at least 51% shares shall be held by SC/ST directors/promoters.*

*The partner/director/promoter should hold at least 51% share in the unit for the preceding one year of application for financial assistance and the holdings of SC/ST partner/promoter/director shall remain at least 51% for the subsequent period of at least two years of reimbursement of the financial assistance. In this regard, an undertaking must be submitted by the applicant.

4. Following exporters shall be deemed to fall under the Women Entrepreneur category
5. The concern should be in existence for at least one year
6. In case of a proprietary concern, the proprietor shall be a woman
7. In the case of partnership firm/FPOs/FPCs/LLP/Private Limited companies, all the partners/directors/promoters shall be women.

5. APEDA shall charge a processing fee as approved by the Department of Commerce (DoC), Ministry of Commerce and Industry, Government of India on a disbursed amount which is presently 5% + GST as applicable. The processing fee shall be deducted at the time of the release of funds to the applicant.

PROCEDURE FOR FILING OF APPLICATION AND DOCUMENT REQUIREMENTS

PROCEDURE FOR APPROVAL

1. The proposals would first be evaluated by an Oversight Committee to ensure:
   • equitable distribution of assistance disbursed by APEDA, both geographically and in terms of product lines.
   • that geographically disadvantaged states (land-locked, hilly and northeastern states) and smaller/ first-time exporters get preference in disbursement of assistance; and
   • that the beneficiary getting assistance from APEDA does not claim assistance under any other scheme of Government of India for the same project/ proposal.
2. The composition of the Oversight Committee would be as under:
   • Joint Secretary (EP – Agri), D/o Commerce – Chairman
   • Chairman, APEDA
   • Director/ Deputy Secretary (EP – Agri), D/o Commerce
   • Director, APEDA
   • Secretary, APEDA
   • HoD, Infrastructure, APEDA
   • HoD, Fresh/Processed Fruits and Vegetables and Processed Food, APEDA
   • HoD, Finance, APEDA – Convener
3. The Oversight Committee will meet at least once every month. The presence of 50% of the members would constitute a quorum for the meetings.
4. The Oversight Committee may decide to allow proposals under certain sub-components to be directly processed by APEDA, without being scrutinized by the Committee.
5. Financial and technical appraisal of the proposals would be done by APEDA, directly or through a Technical Committee constituted by the Chairman, APEDA.
6. The proposals complete in all respects and recommended by the Oversight Committee shall be processed by APEDA for grant of In-Principle Approval.
7. APEDA or the agency authorized by APEDA may conduct physical verification of the applications related to the creation of infrastructure if required.
8. All eligible applications for financial assistance for the creation of infrastructure shall be evaluated by a Technical Committee constituted by APEDA.
9. Subsequently, the letter containing In-Principle Approval (IPA) shall be issued to the applicant.

To Know More Details about the submission of the Final Document of FOODS EXPORT PROMOTION SCHEME OF APEDA

Authors Bio:-

Sudheer Varma Vegesna