Government enhances scope of TMA scheme for agricultural exports
What's the story
The government on Friday enhanced the scope of the Transport and Marketing Assistance scheme for specified agriculture products by including dairy products under its purview and increasing assistance rates.
The scheme has been extended till March 31, 2022.
Enhanced assistance under the revised scheme is expected to help Indian exporters of agricultural products to meet rising freight and logistics costs, an official statement said.
Assistance
The financial assistance scheme had been announced in 2019
In 2019, the government announced the scheme 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.
Under the TMA plan, the scheme reimburses a certain portion of freight charges and provides assistance for the marketing of agricultural produce.
Statement
Dairy products will now be eligible for assistance: Statement
"Now the Department of Commerce has notified revised TMA for specified agriculture products scheme for exports effected on or after April 1, 2021, up to March 31, 2022. The existing scheme will remain in operation for exports effected up to March 31, 2021," the statement said.
Dairy products, which were not covered under the earlier scheme, will now be eligible for assistance, it said
Rate
The rates of assistance have been increased
The rates of assistance have been increased. They have been increased by 50 percent for exports by sea and 100 percent through the air.
The scheme was introduced to provide assistance for the international component of freight, to mitigate the disadvantage of higher freight costs faced by the Indian exporters of agriculture products.
Information
DGFT will shortly notify the procedure for availing assistance
It was initially applicable for exports affected from March 1, 2019, to March 31, 2020. It was later extended up to March 31, 2021. The Directorate General of Foreign Trade (DGFT) will shortly notify the procedure for availing assistance under the revised scheme.