Transport and Marketing Assistance scheme

Context

  • Recently, the Centre has revised Transport and Marketing Assistance scheme for Specified Agriculture Products’.

What are the revised version of Transport and Marketing Assistance scheme

  • Dairy products, which were not covered under the earlier scheme, will be eligible for assistance under the revised scheme.
  • Rates of assistance have been increased, by 50% for exports by sea and by 100% for exports by air.
  • List of Ineligible Products
  • Transport and Marketing Assistance (TMA) scheme

Back to basics

What is Transport and Marketing Assistance scheme?

  • It was established in 2019 to provide financial help for the transportation and commercialization of agricultural products in order to increase agricultural exports to select European and North American countries.
  • The government announced an Agriculture Export Policy in 2018, with the goal of doubling exports to USD 60 billion by 2022.
  • APEDA (Agricultural and Processed Food Products Export Development Authority) seeks to increase India’s agricultural and food export potential.
  • The TMA allows the government to reimburse a percentage of freight costs and give marketing aid for agricultural products.
  • Exports of qualified agricultural products to the acceptable nations, as defined from time to time, shall be eligible for assistance at the stated rates.
  • The revamped system now covers dairy products as well as other agricultural goods, and the support rates have been enhanced.
  • Assistance rates have been increased by 50 percent for marine exports and 100 percent for air exports.
  • The TMA would be compensated by the DGFT Regional Authorities (Directorate General of Foreign Trade).

What are the objectives of the TMA scheme?

  • To assist with the transnational aspect of freight and agricultural product marketing.
  • To compensate for the disadvantage of increased transportation costs associated with the export of specific agricultural products as a result of trans-shipment.
  • To raise brand awareness for Indian agricultural commodities in the targeted international markets.

Who is eligible for TMA Scheme?

  • The scheme covers all the exporters of eligible agriculture products, registered with the relevant Export Promotion Council, as per the Foreign Trade Policy. The transport and marketing assistance scheme aims to reimburse the part amount of freight paid (sea and air) by the exporter and also the marketing costs involved in the promotion of the product.

Coverage under the TMA scheme

  •  Export of agricultural products, to certain permissible countries
  1. The scheme covers freight transportation and the marketing for export through both ways, i.e., Air as well by sea (both regular and refrigerated cargo).

Ineligible categories under the TMA Scheme

The below are the ineligible categories under TMA scheme:-

  • Products exported from SEZs/ EOUs/ EHTPs/ STPs/ BTPs/ FTWZs
  • SEZ/EOU/EHTPs/STPs/BTPs/FTWZs products exported through DTA units
  • Export of imported goods covered under paragraph 2.46 of the FTP;
  • Exports through trans-shipment, i.e., exports that are originating in the third country but trans-shipped through India;
  • Exported items are restricted or prohibited for export under Schedule-2 of Export Policy in ITC (HS) unless specifically notified.
  • Export of goods through courier or foreign post offices using e-Commerce

Source: PIB & AFLEO.COM

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