Transport and Marketing Assistance Revised

Relevance

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

Context

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

Key points

• 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.

Transport and Marketing Assistance scheme

About

• 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).

Coverage

• 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.

Pattern of Assistance

• 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

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