The government on Friday has expanded the Transport and Marketing Assistance (TMA) for Specified Agriculture Products Scheme to include dairy products, as well as boosting the scheme's rates of assistance.
The TMA plan reimburses a percentage of foreign freight expenses to offset the disadvantage of high freight costs encountered by Indian farm produce exporters to far-flung destinations, as well as providing marketing support.
The rates of assistance have been increased by 50% for marine exports and 100% for air exports, according to a statement from the trade and industry ministry.
Dairy products, which were previously excluded from the plan, will again be eligible for help, according to the statement.
The amended plan would apply to “exports made on or after April 1, 2021, through to March 31, 2022,” according to the ministry. “The present system will continue to apply to exports made until March 31, 2021.”
The TMA plan was established in 2019 to increase agricultural commodity exports to selected European and North American nations. It was initially only valid for shipments made between March 1, 2019, and March 31, 2020, however, it was later extended until March 31, 2021.
The resolution comes at a time when Indian exporters are seeing a significant increase in shipping freight prices. Due to a severe worldwide container scarcity, container freight costs have increased multiple times since the commencement of the Covid-19 epidemic last year.
According to the ministry's statement, the Directorate General of Foreign Trade (DGFT) would soon publish the procedure for obtaining assistance under the new plan.
About Transport and Marketing Assistance (TMA)
The "Transport and Marketing Assistance" (TMA) for defined agriculture products scheme intends to provide help and support for the international element of freight and marketing of agricultural produce, with the goal of mitigating the disadvantage of higher transportation costs for specified agriculture products due to trans-shipment and promoting brand recognition for Indian agricultural products. An IEC is needed to apply for the TMA program. Other requirements can be found in Chapter 7 of Foreign Trade Policy and Procedures.
