Agriculture Export Promotion Scheme

The Agriculture Export Promotion Scheme (AEPS), implemented by APEDA, is a government initiative to enhance India’s agricultural exports. It supports farmers, exporters, FPOs, SHGs, government agencies, and cooperatives through financial assistance for infrastructure development, quality certification, and market promotion. The main aim of the scheme is to boost foreign exchange earnings, reduce post-harvest losses, and improve competitiveness by funding cold storage units, testing labs, branding, and international trade participation. AEPS also emphasizes capacity building through training and helps exporters meet global standards. Eligibility extends to APEDA-registered exporters, certified bodies, and farmer organizations. To avail themselves of the benefits of the scheme, applicants are required to submit the required documents online via the APEDA portal.

In this blog, we explore the features, objectives, challenges, and future prospects of the Agriculture Export Promotion Scheme and how it is helping Indian farmers and exporters tap into global opportunities.

Why Focus on Agricultural Exports?

Agriculture is the backbone of the Indian economy, employing nearly half the workforce, which contributes 17-18% to the country’s GDP. India is among the world’s largest producers of rice, wheat, spices, tea, coffee, and fruit. India exports over 10 million tonnes of rice annually, making it one of the top rice exporters globally. Increasing exports of value-added products such as processed foods, organic products, and spices can raise foreign exchange earnings and reduce dependency on imports.

What is the Agriculture Export Promotion Scheme?

The Agricultural Export Promotion Scheme (AEPS) is an initiative by the government of India that is designed to boost the export of agricultural products from the country. It was launched to support farmers, exporters, and the entire agricultural value chain. The main aim behind the scheme is to enhance India’s presence in global markets and improve foreign exchange earnings through agricultural exports.

With AEPS, the government seeks to:

• Promote the export of agricultural and processed food products from India to global markets.
• Provide financial assistance to exporters for activities related to marketing, branding, and participation in international trade fairs.
• Support the development of infrastructure required for export, including cold storage, packaging, and quality testing facilities.
• Help Indian exporters meet international quality and safety standards by subsidising certification and compliance costs.
• Reduce the cost burden on small and medium-scale exporters to increase their competitiveness abroad.
• Reduce post-harvest losses through better storage and processing facilities.
• Increase competitiveness by encouraging quality standards and certifications.
• Diversify export destinations to reduce dependence on traditional markets.

Components of AEPS

The Agriculture Export Promotion Scheme (AEPS) is administered and controlled by the Agricultural and Processed Food Products Export Development Authority (APEDA). There are several core features outlined in the Operational Guidelines for the 15^th Finance Commission Cycle (2021–2026), which are designed to bolster the export of agricultural and processed food products.

1. Financial Assistance for Export Infrastructure Development

• APEDA provides financial support for establishing export-related infrastructure, including packhouses, cold storage facilities, and testing laboratories.
• This assistance is extended to both public and private entities which are involved in the export sector.

2. Support for Market Development Activities

• The scheme facilitates participation in international trade fairs and buyer-seller meets to promote Indian agricultural products globally.
• Financial aid is available for branding, packaging, and promotional activities.

3. Quality Assurance and Certification Assistance

Subsidies are provided for obtaining quality certifications and compliance with international standards, to ensure the competitiveness of Indian products in the global market.

4. Capacity Building and Training Programs

• APEDA organizes training sessions and workshops to educate stakeholders about export procedures, quality standards, and market dynamics.
• These programs aim to enhance the skills and knowledge of exporters, facilitating smoother entry into international markets

5. Promotion of Focus Products and Regions

• The scheme prioritizes certain agricultural products and regions, offering targeted support to boost exports from these areas.

6. Monitoring and Evaluation Mechanisms

• APEDA implements monitoring systems to assess the effectiveness of the scheme and ensure the proper utilization of funds.
• Regular evaluations help refine the scheme and align it with evolving market needs.

Eligibility Criteria for AEPS Registration

1. APEDA-Registered Exporters: Entities engaged in the export of scheduled products and registered with APEDA.
2. Certification Bodies: Organizations accredited under the National Programme for Organic Production (NPOP).
3. State and Government Agencies: State-level agencies, government institutions, and departments involved in agricultural exports.
4. Trade Bodies and Chambers: Recognized trade associations and chambers of commerce related to the agricultural sector.
5. Farmer Producer Organizations (FPOs): Collective entities formed by farmers to undertake agricultural production and export activities.
6. Self-Help Groups (SHGs): Community-based groups engaged in agricultural production and processing.
7. Farmer Producer Companies (FPCs): Companies formed by farmers to enhance their collective bargaining power in the market.
8. Cooperative Societies: Registered cooperatives involved in agricultural production and export.
9. Individual Farmers: Farmers engaged in the production of export-oriented agricultural commodities.
10. Accredited Laboratories: Laboratories recognized by APEDA for testing and certification purposes.

Online Application Process

• Visit the APEDA Financial Assistance Schemes portal.
• Log in using your Registration-Cum-Membership Certificate (RCMC) number.
• Complete the online application form, providing all necessary details about your export activities and the assistance sought.
• Submit scanned copies of essential documents, which may include:
  • Detailed project report or proposal.
  • Cost estimates from a Chartered Engineer or Civil Architect for infrastructure projects.
  • Technical brochures or literature for equipment.
  • Export performance data from the last three years.
  • Projected exports for the next five years.
  • Declaration of monthly export returns posted on the APEDA website.
• APEDA reviews the application for completeness and compliance.
  • Proposals up to ₹1 crore are approved by the Chairman of APEDA.
  • Proposals exceeding ₹1 crore are placed before the APEDA Authority for approval.
  • Upon approval by the authority, an In-Principle Approval (IPA) letter is issued to the applicant.
• For projects involving the creation of capital assets, APEDA or an authorized agency may conduct a physical verification to assess the implementation status
• After project completion, submit the final claim along with:
  • Completion certificate.
  • Invoices and payment receipts.
  • Photographs of the completed project.
  • Any other documents specified in the IPA letter.
• Upon satisfactory verification of the final claim, APEDA disburses the approved financial assistance to the applicant’s bank account.

Conclusion

The goal of India to dominate the world in agricultural exports is in line with the Agriculture Export Promotion Scheme, a strategic endeavour. AEPS benefits both exporters and farmers by enhancing market reach, promoting quality compliance, and strengthening infrastructure. Notwithstanding the obstacles still present, the scheme’s all-encompassing strategy should help the industry thrive sustainably.
AEPS has the potential to revolutionise agricultural exports from India and make a substantial contribution to rural prosperity and the country’s economy, provided the government, commercial sector, and farmers continue to work together.

Related Service

APEDA Registration Online

Frequently Asked Questions

1. What is the Agriculture Export Promotion Scheme (AEPS)?

AEPS is a government initiative aimed at boosting India’s agricultural exports by improving infrastructure, quality control, market access, and capacity building for farmers and exporters.

2. Who can benefit from the Agriculture Export Promotion Scheme?

Farmers, agro-exporters, food processors, exporters, and state governments involved in agricultural production and export activities can benefit from AEPS.

3. What kind of financial assistance is provided under AEPS?\

The scheme provides subsidies and grants for creating export-related infrastructure such as cold storage, pack houses, testing labs, and processing units.

4. How does AEPS help improve product quality?

AEPS supports certification and quality compliance programs such as ISO, GlobalGAP, and organic certification, and assists exporters in meeting international food safety standards.

5. Are there any special provisions for promoting organic exports under AEPS?

Yes, the scheme encourages organic farming clusters and assists exporters in obtaining organic certification to access premium global markets.

6. How does the scheme help in market diversification?

AEPS facilitates participation in international trade fairs, buyer-seller meets, and provides market intelligence to explore new export destinations beyond traditional markets.

7. What role do state governments play in AEPS?

State governments identify export potential crops and clusters, provide local infrastructure support, and work in coordination with the central government for implementation.

8. Does AEPS support technological advancements in agriculture?

Yes, the scheme promotes the adoption of modern farming techniques, mechanization, and post-harvest technologies to improve productivity and product quality.

9. How does AEPS address logistical challenges?

AEPS provides financial aid for cold chain infrastructure, refrigerated transport, and better storage facilities to reduce post-harvest losses of perishable goods.