Transport and Marketing Assistance Revised

Table of Contents

Relevance

GS 3: Issues related to direct and indirect farm subsidies and minimum support prices.

The union government has revised “Transport and Marketing Assistance” (TMA) scheme for Specified Agriculture Products.

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.
Enhanced assistance under the revised scheme is expected to help Indian exporters of agricultural products to meet rising freight and logistics costs.

In 2019, the Department of Commerce had introduced ‘Transport and Marketing Assistance (TMA) for Specified Agriculture Products Scheme’.
The objective was to provide assistance for the international component of freight,
Also, it aimed to mitigate disadvantage of higher freight costs faced by the Indian exporters of agriculture products.
The scheme was initially applicable for exports effected during the period from 01.03.2019 to 31.03.2020 and was later extended for exports effected up to 31.03.2021.
The scheme was suitably included in the Foreign Trade Policy (2015-20).

All exporters, registered with relevant Export Promotion Council as per Foreign Trade Policy, of eligible agriculture products.
The assistance, at notified rates, will be available for export of eligible agriculture products to the permissible countries, as specified from time to time.

Assistance under TMA would be provided in cash through direct bank transfer as part reimbursement of freight paid.
The level of assistance would be different for different regions as notified from time to time for export of eligible products.
The level of assistance would be different for different regions as notified from time to time for export of eligible products.
The scheme shall be admissible for the exports made through EDI (Electronic Data Interchange) ports only.
The scheme covers freight and marketing assistance for export by air as well as by sea