Background
APEP Scheme is a financial assistance scheme introduced by APEDA (i.e., Agricultural and Processed Food Products Export Development Authority) for facilitating the export of Agri-products by providing assistance to exporters. The scheme shall be valid for 5 years from FY 2021-22 to 2025-26.
Benefits under the scheme
The scheme seeks to provide financial aid to the APEDA registered exporters or other organisations such as government agencies/ institutions, trade bodies/ chambers, laboratories etc. in three broad areas 1) development of export infrastructure, 2) quality development and 3) market development.
1. Development of export infrastructure
Under this component, assistance is provided for setting up of post-harvest handling facilities to reduce losses caused due to spoilage and to ensure quality production of agro products. Assistance covered is as follows:
|
Nature of assistance |
Quantum |
|
|
a) |
Integrated packhouse and processing facilities such as equipment for collection, cleaning, washing, sorting/ grading, pre- cooling, packing, cold storage etc. |
40% of the total cost subject to INR 200 lakhs for each sub-component Upper ceiling per beneficiary up to INR 500 lakhs |
|
b) |
Purchase of insulated, reefer transport /mobile pre-cooling units including special vehicle for livestock carriers |
|
|
c) |
Cable handling system for banana and other crops |
|
|
d) |
Food processing facilities for addressing missing gaps such as x-ray, cooking/ blanching line, sensors etc. |
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e) |
Up-gradation and modernization of existing facilities of exporters to enhance the competitiveness |
2. Quality development
Under this component, assistance is provided to comply with the food safety requirements and prescribed standards of importing countries. Assistance under this component covers the following:
|
Nature of assistance |
Quantum |
|
|
a) |
Implementation and Certification of quality and Food Safety Management Systems for all APEDA scheduled products |
50% of the total cost subject to ceiling of INR 5 lakh per certification |
|
b) |
Procuring hand-held devices including cost of software for farm level peripheral coordinates for traceability systems including block chain, artificial Intelligence, or any other technology |
50% of the cost of equipment subject to INR 20 lakh per beneficiary |
|
c) |
Strengthening of technical and managerial skills through training and study tours |
50% of the travel cost and training fee subject to INR 3 lakh per participant per year |
|
d) |
Testing of water, soil, residues of pesticide, veterinary drugs, hormones, toxins, heavy metal, microbial count etc. in APEDA scheduled products |
50% of the total cost subject to INR 5,000 per sample Upper ceiling per beneficiary 20 Lakhs for 5 years |
|
e) |
Introduction of new plant / seed / germplasm varieties for export oriented / varieties suitable for processing for APEDA scheduled products |
60% of the cost of the imported plant material subject to INR 50 lakhs |
|
f) |
Laboratory for export testing and in-house lab equipment |
50% of the cost subject to INR 50 lakhs |
|
g) |
Support for innovative ideas for infrastructure and quality improvement in agricultural and processed food sector |
Up to INR 100 lakhs |
|
h) |
Implementation of special activities to enhance quality of the produce including application of fruit cover to prevent pest and diseases |
50% of the total cost subject to INR 25 lakh per beneficiary |
3. Market development
Under this component, assistance is provided to help exporters achieve access to newer markets and help sustain their presence in the existing markets. The assistance under this component covers the following:
|
Nature of assistance |
Quantum |
|
|
a) |
Development and dissemination of database, market intelligence |
Quantum not available (component would be implemented by APEDA) |
|
b) |
Participation in fairs / events / buyer-seller meets / reverse buyer seller meets, trade delegations, promotion of GI products etc. |
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|
c) |
Development of standards of packaging, development of transport protocol (road, rail, air, waterways and sea transport), tagging of animals, R&D etc. |
|
|
d) |
New Market / Product development through conducting feasibility studies |
50% of the total cost subject to INR 10 lakhs per study per beneficiary |
|
e) |
Assistance for trial shipment covering multi-modal transport |
50% of the total cost subject to INR 10 lakhs |
|
f) |
Registration of Brand / IPR outside India |
50% of the total cost subject to INR 20 lakhs per beneficiary |
Important conditions under the scheme
- Assistance shall be applicable for all APEDA scheduled products. Further, the beneficiaries under the scheme are exporters registered with APEDA, public sector enterprises, certification bodies, government institutions/ agencies, trade bodies/ chambers, laboratories etc.
- Expenditure incurred prior to the date of submission of online application in APEDA shall not be considered for assistance.
- Processing fee shall be deducted at the time of release of funds to the applicant at the rate of 5% plus taxes.
- Exporter shall submit online quarterly export performance from the assisted unit, on APEDA website even if the export is nil. Also, it shall submit monthly export returns on APEDA website.
- In Principle Approval (IPA) of APEDA is required for all components of the scheme except for Lab testing charges as mentioned under sub-component of quality development
- Exporter should submit declaration stating that no financial assistance has been availed from any state/centre agency. If application also submitted to other state/centre agency, then details for it should be submitted in online application.
- Beneficiary getting assistance from APEDA should not claim assistance under any other scheme of Government of India for the same project/ proposal.
- Please note that in the scheme guidelines there is no export obligation prescribed, however, in the DPR format it is clearly asked from the applicant to furnish the export business plans such as export projections, export destination etc. Further, the scheme aims to incentivise and promote the exports. Therefore, the units having higher share in exports shall have more favourable chances that their application for benefits shall get approved.
Clarification to key specific queries
Query 1. Whether this scheme is limited to exporters only or domestic suppliers are also eligible under the scheme?
Answer. The beneficiaries under the scheme includes APEDA registered exporters. It is imperative to note that in terms of Section 12 of APEDA Act, only the persons making export of any one or more scheduled products are registered with APEDA. Hence, persons making export are eligible under the scheme, whereas the persons exclusively engaged in domestic supply should not be eligible.
Query 2. Whether this scheme is limited to 100% export-oriented units or persons making both exports and domestic supplies are eligible?
Answer. There is no restriction defined in the scheme or APEDA Act, that the beneficiaries under the scheme shall be 100% export-oriented unit. Accordingly, the persons making both exports and domestic supplies should also be eligible.
Query 3. Whether there is any export obligation attached with the benefits granted under the scheme?
Answer. There is no defined export obligation prescribed in the scheme that need to be fulfilled by the beneficiaries under the scheme. However, the scheme is intended to promote the exports, accordingly, the approval under the scheme is based upon the export projections and performance.
The author can also be reached at calakshitjindal@gmail.com
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