Freight Subsidy Boosts Export of Agri Products

MoFPI Implements Subsidy Scheme for Agri Value Chain

The Aryavarth Express
Agency(New Delhi): The Ministry of Food Processing Industries (MoFPI) is actively promoting the export of agricultural products through its Central Sector Scheme, “Operation Greens (OG).” Initiated in 2018-19 for the development of the Tomato, Onion, and Potato (TOP) value chain, the scheme has now expanded to include 22 perishable crops, encompassing 10 fruits, 11 vegetables (including TOP), and shrimp, as per the Union Budget 2021.

The OG scheme has a dual strategy comprising short-term Price Stabilization Measures and long-term Integrated Value Chain Development Projects. Under its short-term interventions, MoFPI offers a subsidy covering 50% of eligible transportation (including air) and storage costs. For exports, the subsidy towards transportation charges is applicable only up to Indian borders. The following data reflects the subsidy disbursed under the short-term interventions of the OG scheme:

– In FY 2020-21, a total of ₹24.91 crore was disbursed, including ₹23.33 crore for Kisan Rail and ₹1.58 crore as a short-term subsidy.
– In FY 2021-22, the total subsidy amounted to ₹58.20 crore, with ₹54.46 crore for Kisan Rail and ₹3.74 crore as a short-term subsidy.
– FY 2022-23 saw a total subsidy of ₹29.99 crore, entirely under the short-term subsidy, as there was no allocation for Kisan Rail.
– In FY 2023-24, a total of ₹2.00 crore has been disbursed, all under the short-term subsidy.

Alongside OG, MoFPI also implements the Pradhan Mantri Kisan Sampada Yojana (PMKSY), which aids in creating modern infrastructure and efficient supply chain management from farm gate to retail outlet. This scheme aims to reduce agricultural produce wastage, increase processing levels, and enhance processed food exports.

Additionally, MoFPI is running the PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME) to support the setup and upgradation of 2 lakh Micro Food Processing Enterprises. The Production Linked Incentive (PLI) scheme, launched for 2021-22 to 2026-27, aims to create global food champions and improve the visibility of Indian food brands internationally.

It’s important to note that no specific State/UT-wise allocation and release of funds are made for the promotion of exports under these schemes.

This information was provided by the Minister of State for Food Processing Industries, Km. Shobha Karandlaje, in a written response in the Rajya Sabha.

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