Daily News Analysis

Transport and Marketing Assistance (TMA) Scheme    

14th September, 2021 Agriculture

 

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Context

  • The government enhanced the scope of Transport and Marketing Assistance (TMA) scheme for specified agriculture products by including dairy products under its purview and increasing the rates of assistance.
  • The scheme has been extended till March 31, 2022.

 

TMA

  • The “Transport and Marketing Assistance” (TMA) for specified agriculture products scheme aims to provide assistance for the international component of freight and marketing of agricultural produce which is likely to mitigate disadvantage of higher cost of transportation of export of specified agriculture products due to trans-shipment and to promote brand recognition for Indian agricultural products in the specified overseas markets.

 

Coverage

  • All exporters, duly registered with relevant Export Promotion Council as per Foreign Trade Policy, of eligible agriculture products shall be covered under this scheme.
  • The assistance, at notified rates, will be available for export of eligible agriculture products to the permissible countries, as specified from time to time.

 

Eligibility of Products

  • The assistance will be provided on export of all agriculture products covered in HSN chapter 1 to 24 including marine and plantation products with a few exceptions.

 

Exceptions

  • Products exported from SEZs
  • Exports through trans-shipment, i.e. exports that are originating in third country but trans- shipped through India;
  • Export products which are subject to Minimum Export Price or export duty, unless specifically notified.
  • Export of goods through courier or foreign post offices using e-Commerce

 

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 assistance shall be admissible only if payments for the exports are received in Free Foreign Exchange through normal banking channels.
  • The scheme shall be admissible for the exports made through EDI ports only.
  • The scheme covers freight and marketing assistance for export by air as well as by sea (both normal and reefer cargo).

 

https://economictimes.indiatimes.com/news/economy/agriculture/govt-enhances-scope-of-mta-scheme-for-agri-exports/articleshow/86092230.cms