Recently, there has been a significant update in the agricultural sector. The Ministry of Commerce and Industry has revised the Transport and Marketing Assistance (TMA) scheme for specified agriculture products. This new change will come into effect from 1st April, 2021 and will last till 31st March, 2022.
About the TMA Scheme
The TMA scheme was originally launched back in 2019. Its primary purpose is to provide financial aid for the transportation and marketing of agricultural products. The intent behind this assistance is to bolster the export of such commodities to certain countries in Europe and North America.
In 2018, the government approved an Agriculture Export Policy with an ambitious target to double the shipments to USD 60 billion by 2022. The Agricultural and Processed Food Products Export Development Authority (APEDA) is the body that works towards achieving this target by expanding the export capability of Indian agricultural and food products.
Under the TMA scheme, the government reimburses a portion of freight charges and provides marketing assistance for agricultural produce. This financial help, accessible at notified rates, supports the export of eligible agriculture products to permissible countries, as specified from time to time.
Key Changes to the TMA Scheme
In its most recent revision, the scheme now includes dairy products among other agriculture products under its purview. In an effort to further assist exporters, the rates of assistance have been increased—by 50% for exports by sea and 100% for those by air. All reimbursements through the TMA will be managed through the Regional Authorities of the Directorate General of Foreign Trade (DGFT).
Objective Behind the Revision
There are three primary objectives behind the revision of the TMA scheme. It aims to offer assistance for the international component of freight and marketing of agricultural produce. It also seeks to counterbalance the disadvantage of higher cost of transportation for export of specific agriculture products due to trans-shipment. Lastly, it intends to promote brand recognition for Indian agricultural products in specified overseas markets.
Agriculture Export Policy 2018
The Agriculture Export Policy of 2018 was designed with a clear vision—to tap into the export potential of Indian agriculture through suitable policy instruments, thereby transforming India into a global power in agriculture and boosting farmers’ income. To achieve this, the policy focuses on diversifying the export basket and destinations, while promoting high value and value-added agricultural exports, including perishables. It also places emphasis on promoting novel, indigenous, organic, ethnic, traditional, and non-traditional Agri product exports, and provides an institutional mechanism for pursuing market access, tackling barriers, and managing sanitary and phytosanitary issues.
About APEDA
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. This body functions under the Ministry of Commerce and Industry and has its headquarters in New Delhi. APEDA’s main responsibility is promoting and developing export of schedule products such as fruits, vegetables, meat products, dairy products, alcoholic and non-alcoholic beverages, amongst others. It also monitors sugar import. In 2017, APEDA launched a mobile app—”Farmer Connect”—which allows farmers to register their farms online, track application status, and get approval updates from the State Governments and authorized Laboratories.
With these recent changes to the TMA scheme and the ongoing efforts of APEDA, the future of agricultural exports from India looks promising.
Last Modified: February 13, 2024