APEDA SCHEMES

1. Financial assistance scheme of APEDA under the 15th

Finance Commission, including the date and year it was
introduced:

 Scheme Name: Financial Assistance Scheme for Export Promotion Activities

 Introduced by: APEDA (Agricultural and Processed Food Products Export
Development Authority)
 Introduced in: 2021
 Objective: To provide financial assistance to exporters of agricultural and
processed food products for participating in trade fairs, exhibitions, buyer-
seller meets, and other marketing activities
 Eligibility Criteria:
 Exporter must be registered with APEDA
 Exporter should have a valid Import-Export Code (IEC)
 Exporter should have a track record of at least one year in the export of
agricultural or processed food products

 Financial Assistance Provided:

 Covers expenses such as participation in trade fairs and exhibitions,
airfare for overseas travel, advertisement and publicity expenses, and
the cost of packaging and labeling of products
 Maximum financial assistance provided is INR 10 lakhs (approximately
USD 13,500) per beneficiary per financial year
 Amount of financial assistance varies based on the type of activity and
the country of participation
 Application Process:
 Interested exporters can apply for the scheme through the official
website of APEDA
 The application should be submitted before the start of the
event/activity
 After the completion of the event/activity, the exporter must submit a
utilization certificate and other required documents to claim the
financial assistancE
2.THE FOOD PROCESSING FUND

the Food Processing Fund of NABARD for APEDA:

 1. Objective: The Food Processing Fund was established with the objective of
promoting the growth of the food processing industry, increasing value
addition, and generating employment opportunities in the sector.
2. Amount of the Fund: The total amount of the Food Processing Fund is Rs.
2,000 crore.
3. Eligibility: The food processing units registered with APEDA, which are
engaged in the processing of fruits, vegetables, milk, meat, poultry, fish, and
their products, are eligible to apply for the fund. The units must have a
minimum credit rating of BBB- and a viable business plan.
4. Types of Loans: The fund offers two types of loans - term loans and working
capital loans. Term loans are provided for the establishment of new food
processing units or the expansion and modernization of existing units.
Working capital loans are provided to meet the short-term working capital
requirements of the units.
5. Interest Rate: The interest rate for the Food Processing Fund is linked to the
base rate of NABARD, which is currently 7.5%.
6. Repayment Period: The repayment period for the term loan is up to 10 years,
including a moratorium period of up to 2 years. The repayment period for the
working capital loan is up to 3 years.
7. Maximum Loan Amount: The maximum loan amount for the Food Processing
Fund is Rs. 25 crore per unit.
8. Utilization of the Fund: The fund can be utilized for the purchase of machinery
and equipment, construction of buildings, working capital requirements, and
other related expenses.
9. Impact: Since its launch in 2017, the Food Processing Fund has supported the
establishment of more than 160 food processing units in India, generating
employment opportunities for around 16,000 people.

In conclusion, the Food Processing Fund of NABARD for APEDA is a significant

initiative that provides financial assistance to eligible food processing units in India. It
has helped in the growth of the food processing industry, increased value addition,
and generated employment opportunities in the sector.

3.MEGA FOOD PARK

 The Mega Food Park scheme was launched by the Ministry of Food Processing Industries
(MoFPI) in 2008.

 The scheme was set up to provide a mechanism to link agricultural production to the market
by bringing together farmers, processors, and retailers.

 The regulatory body responsible for the implementation of the Mega Food Park scheme is
the Ministry of Food Processing Industries (MoFPI).
  The scheme is also implemented in partnership with the Agricultural and Processed Food
Products Export Development Authority (APEDA).

 APEDA is responsible for regulating the export of agricultural and processed food products
from India and plays a key role in supporting the development of the food processing
industry.

 The Mega Food Park Scheme aims to link agricultural production to the market by bringing
together farmers, processors, and retailers.

 The scheme is based on a "Cluster" approach, which involves creating state-of-the-art

support infrastructure in a defined agri/horticultural zone.

 The infrastructure includes collection centers, primary processing centers, central processing
centers, cold chain, and around 25-30 fully developed plots for entrepreneurs to set up food
processing units.

 The project is implemented by a Special Purpose Vehicle (SPV) registered under the
Companies Act.

 State governments, state government entities, and cooperatives are not required to form a
separate SPV for implementation.

 Funds are released to the SPVs subject to fulfilling the conditions of the Scheme Guidelines.

 The scheme has been discontinued by the government with effect from 01.04.2021, with
provision for committed liabilities for ongoing projects only.

 So far, 22 Mega Food Parks are operational under the scheme.

4.Pradhan Mantri Kisan SAMPADA Yojana (Scheme for Agro-

Marine Processing and Development of Agro-Processing
Clusters)
Aim and Objective:

 Pradhan Mantri Kisan SAMPADA Yojana is a Central Sector Scheme aimed at

developing the agro-processing sector and creating modern infrastructure
with efficient supply chain management from farm gate to retail outlet.
 The scheme aims to reduce wastage of agricultural produce, increase the
processing level, and enhance the export of processed foods.
 It also aims to provide better returns to farmers and create employment
opportunities in rural areas.

Expected outcomes:
  PM Kisan SAMPADA Yojana is expected to leverage an investment of Rs.
31,400 crore for handling 334 lakh MT of agro-produce valued at Rs. 1,04,125
crore.
 The scheme is expected to benefit 20 lakh farmers and generate 5,30,500
direct and indirect employment opportunities in the country by the year 2019-
20.

Scheme Objective Expected Benefits

Investment of Rs. 5000 crore,

Facilities for quality testing, cold storage, and
Mega Food Parks other processing-related activities
handling of 57 lakh MT of agro-
produce, benefitting 10 lakh farmers,
and generating 2.5 lakh
direct/indirect employment
opportunities

Investment of Rs. 5000 crore,

Integrated Cold handling of 66 lakh MT of agro-
Chain and Value produce, benefitting 12 lakh farmers,
Addition Link farm gate to consumer and enhance value and generating 3 lakh direct/indirect
Infrastructure addition to agricultural produce employment opportunities

Investment of Rs. 1400 crore,

Creation/ Expansion of Food
Processing/ Preservation
Capacities (Unit Scheme)
handling of 12 lakh MT of agro-
produce, benefitting 2 lakh farmers,
Create and expand food processing and generating 50,000
and preservation capacities in the direct/indirect employment
country opportunities

Infrastructure for Agro-
processing Clusters
Create modern infrastructure for Investment of Rs. 3000 crore,
agro-processing clusters in the form handling of 33 lakh MT of agro-
of common facilities for testing, produce, benefitting 6 lakh farmers,
processing, packaging, and other and generating 1.5 lakh
related activities direct/indirect employment
 Scheme Objective Expected Benefits

opportunities

Investment of Rs. 750 crore,

handling of 10 lakh MT of agro-
produce, benefitting 2 lakh farmers,
Create backward and forward and generating 50,000
Creation of Backward and linkages to support the supply chain direct/indirect employment
Forward Linkages for agro-processing units opportunities

Create food safety and quality

assurance infrastructure, including
setting up of food testing
laboratories, accreditation and
Food Safety and Quality certification centers, and training
Assurance Infrastructure centers
Investment of Rs. 750 crore,
benefitting 1 lakh food processors
and generating 10,000
direct/indirect employment
opportunities

Develop human resources and

institutions in the field of food Investment of Rs. 500 crore,
processing, including setting up of benefitting 2 lakh people and
Human Resources and training institutes, research centers, generating 10,000 direct/indirect
Institutions and incubation centers employment opportunities
5.Production Linked Incentive Scheme for Food Processing Industry
(PLISFPI)
 The Production Linked Incentive Scheme for Food Processing Industry
(PLISFPI) is a government initiative aimed at boosting investment and
production in the food processing sector in India.
 The scheme was launched by the Ministry of Food Processing Industries
(MoFPI) on December 10, 2020.
 The scheme has an outlay of Rs 10,900 crore, which will be provided over a
period of six years (2020-21 to 2025-26).
 The scheme provides incentives to eligible food processing units based on
their incremental sales for a period of five years.
 Eligible food processing units include those engaged in the processing of
fruits and vegetables, ready-to-eat/cook food, milk and milk products, poultry,
meat, and fishery products, among others.
 The incentives are provided in the form of a percentage of the incremental
sales over the base year (2019-20), ranging from 5% to 20%.
 The scheme aims to attract investment of Rs 20,000 crore and generate 2.5
lakh jobs in the food processing sector.
 The PLISFPI scheme is expected to benefit around 2,000 food processing units
across the country, including micro, small, and medium enterprises (MSMEs).
 The scheme is also expected to encourage the development of infrastructure,
such as cold chain facilities, warehouses, and processing units, in the food
processing sector.
 The scheme is in line with the government's vision of making India self-reliant
(Atmanirbhar) and doubling farmers' income by 2022.
 The scheme name: Production Linked Incentive Scheme for Food Processing
Industry (PLISFPI).
 The scheme objective: To support the food processing industry with minimum
sales and investment to incentivize the emergence of strong Indian brands,
create global food manufacturing champions, strengthen Indian brand of food
products, increase off-farm employment opportunities, and ensure
remunerative prices of farm produce.
 The scheme outlay: Rs. 10,900 crores.
 The major food product segments covered under the scheme: Ready to Cook/
Ready to Eat (RTC/ RTE) foods including Millets based products, Processed
Fruits & Vegetables, Marine Products, Mozzarella Cheese.
 The second component of the scheme: Support for branding and marketing
abroad to incentivize the emergence of strong Indian brands.
 The implementation period of the scheme: Six years from 2021-22 to 2026-27.
 The implementation agency of the scheme: Project Management Agency
(PMA).
  The maximum incentive payable to each beneficiary shall be fixed in advance
at the time of approval of that beneficiary.
 The scheme is "fund-limited," i.e. cost shall be restricted to the approved
amount.
 The implementation of the scheme would facilitate expansion of processing
capacity to generate processed food output of Rs. 33,494 crore and create
employment for nearly 2.5 lakh persons by the year 2026-27.
 The scheme also aims to increase India's share in the global food processing
market from the current 1.5% to 3% by 2025.
 The scheme is open to both existing and new units in the food processing
industry, including SMEs and individual entrepreneurs.
The PLISFPI scheme was launched as part of the government's Atmanirbhar Bharat Abhiyan
(Self-Reliant India Campaign).

 The estimated outgo on incentive is ₹10,790 crore.

 The scheme is expected to result in an increase in sales of ₹1,20,267 crore
over the six-year period, with incremental sales of ₹33,494 crore in the sixth
year.
 The cumulative additional investment is estimated to be ₹6,057 crore.
 The scheme is expected to result in an increase in export sales of ₹27,816
crore over the six-year period.
 At the end of the fifth year, the scheme is expected to generate employment
for 2,47,730 people.

RELATIONSHIP BETWEEN SPS AND TBT AGREEMENT

SPS Agreement
Focuses on measures related to protection of human,
animal, and plant life and health
Establishes rules for the use of SPS measures in
international trade
Requires WTO member countries to base their SPS
measures on scientific principles and to avoid
discrimination against foreign products
Promotes transparency and cooperation
Encourages the use of international standards developed
by WHO, Codex Alimentarius Commission, and
International Plant Protection Convention
Complements the TBT Agreement in promoting non-
discriminatory trade
Ensures that technical measures do not create
unnecessary obstacles to international trade
TBT Agreement
Covers technical regulations, standards, and
conformity assessment procedures
Aims to ensure that technical measures do not
create unnecessary obstacles to international
trade
Requires WTO member countries to adopt
measures necessary to protect human health,
safety, and the environment
Promotes transparency and cooperation
Recognizes the work of international standard-
setting bodies such as ISO and IEC
Complements the SPS Agreement in promoting
non-discriminatory trade
Ensures that technical measures do not create
unnecessary obstacles to international trade