Overview

The Agriculture Export Policy (AEP), approved by the Government of India in December 2018, is implemented by the Department of Commerce, Ministry of Commerce and Industry, through the Agricultural and Processed Food Products Export Development Authority (APEDA). Instead of spreading support thinly across the whole country, the policy follows a cluster-based model: it has identified 46 unique product-district clusters — such as grapes in Nashik, mangoes and bananas in Theni, pomegranates in Solapur, onions in Nashik, and Basmati rice in Karnal — where existing production strength, exporter presence, and market potential make focused investment most effective.

Financial support for infrastructure, quality certification, and market development inside these clusters is delivered through APEDA's Agriculture and Processed Foods Export Promotion Scheme, commonly called the Financial Assistance Scheme (FAS), which currently runs through the 15th Finance Commission cycle (2021-22 to 2025-26). A dedicated Farmer Connect Portal (farmerconnect.apeda.gov.in) lets Farmer Producer Organisations (FPOs), Farmer Producer Companies (FPCs), and cooperatives in these clusters link up directly with registered exporters, shortening the chain between farm and foreign buyer.

Key Benefits

• Export infrastructure grants: Assistance of up to 40% of project cost (ceiling ₹200 lakh) for building integrated pack houses with grading/packing lines, pre-cooling units, cold storages, reefer vans, and other post-harvest infrastructure inside identified clusters.
• Higher subsidy for priority groups: The assistance rate rises to up to 75% of project cost for exporters and FPOs from North-Eastern states, Himalayan and land-locked states, Island Union Territories, and for SC/ST and women beneficiaries.
• Support for government-built common infrastructure: Central/state government agencies and public-sector bodies setting up common-use export infrastructure (e.g., a shared pack house or cold chain facility serving an entire cluster) can get assistance up to 90% of cost, capped at ₹600 lakh.
• Quality development assistance: Funding support for setting up or upgrading residue-testing and quality-testing laboratories, and for certifications such as GlobalG.A.P., organic certification, HACCP, and APEDA's own quality marks that buyers abroad require.
• Market development support: Assistance for participation in international trade fairs, buyer-seller meets, publicity material, and market studies that help cluster-based FPOs and exporters reach new overseas markets.
• Non-infrastructure, cluster-level help: Under the newer District and Cluster-Level Export Facilitation Intervention, APEDA funds training, SPS/quality-compliance capacity building, and export facilitation helpdesks at the district/cluster level — useful even for FPOs that are not yet ready to invest in hard infrastructure.
• Farmer Connect Portal access: Free listing and direct interaction with APEDA-registered exporters, helping small producer groups bypass multiple layers of intermediaries.

Eligibility Criteria

• Applicant must be located in or sourcing produce from one of the identified export clusters, or otherwise directly support export promotion of agricultural/processed food products covered by APEDA (which include fruits, vegetables, cereals like Basmati rice, processed foods, and related categories).
• Eligible applicant categories include APEDA-registered exporters, Farmer Producer Organisations/Companies, Self-Help Groups, cooperatives and cooperative federations, state government agencies/corporations, central government institutions, and public-sector undertakings.
• Exporters applying for Financial Assistance Scheme grants must hold a valid Importer-Exporter Code (IEC) from the DGFT and a current APEDA Registration-cum-Membership Certificate (RCMC).
• FPOs/FPCs seeking to be listed on the Farmer Connect Portal need basic registration documents (incorporation certificate, PAN) and proof that their membership is engaged in production of an export-relevant commodity.
• The project for which assistance is sought must relate to export infrastructure, quality upgradation, or market development activity as defined under the FAS guidelines; purely domestic-market projects are not eligible.
• Government institutions applying for the higher (up to 90%) common-infrastructure assistance must demonstrate that the facility will serve multiple exporters/producers within the cluster, not a single private entity.

Documents Required

• Valid Importer-Exporter Code (IEC) certificate issued by DGFT.
• Current APEDA Registration-cum-Membership Certificate (RCMC).
• PAN card and GST registration certificate of the applicant entity.
• Detailed Project Report (DPR) describing the proposed infrastructure/quality/market-development activity, with cost estimates.
• Price quotations from at least two vendors/suppliers for equipment or civil work covered in the DPR.
• Land ownership or long-term lease documents for the site where infrastructure is to be built.
• Bank account details and cancelled cheque/passbook copy of the applicant entity.
• Incorporation/registration certificate of the FPO, cooperative, SHG, or company, plus a list of member farmers where applicable.
• Caste certificate (for SC/ST category claims) or other documentary proof where a higher subsidy rate is being claimed.

How to Apply

1. Get an IEC: Apply online at dgft.gov.in with PAN, GST, and bank details (processing fee ₹500); the IEC is typically issued within 2-3 working days.
2. Register for an APEDA RCMC: Visit apeda.gov.in, go to Exporter Login → New RCMC Application, upload the required documents, and pay the registration fee online; the RCMC is usually issued within a few working days.
3. Log in to the APEDA Exporter Portal: Use the RCMC number to access the Financial Assistance Scheme module, complete the company/FPO profile, and select the relevant product category and cluster.
4. Download the component-specific application form: From the Financial Assistance Scheme section of apeda.gov.in, pick the form that matches your activity — export infrastructure, quality development, market development, or the district/cluster-level facilitation component.
5. Submit the application with the DPR: Upload the Detailed Project Report, vendor quotations, RCMC, IEC, GST certificate, bank details, and land/lease papers through the FAS portal.
6. Appraisal and sanction: APEDA's regional office examines the application and DPR, may conduct a site visit, and places eligible proposals before its sanctioning committee.
7. Grant release: On approval, the sanctioned grant is released in instalments linked to physical and financial progress of the project, verified through utilisation certificates and completion reports.
8. List on Farmer Connect Portal (optional, for FPOs): FPOs/FPCs and cooperatives can separately register free of cost on farmerconnect.apeda.gov.in to connect directly with exporters sourcing from their cluster.

Important Points

• The Financial Assistance Scheme currently operates for the 15th Finance Commission cycle (2021-22 to 2025-26); applicants should check apeda.gov.in for the latest operational guidelines and any extension or revision before applying, since scheme parameters are reviewed periodically.
• Assistance is reimbursed against actual expenditure and is generally released in instalments, not as a single upfront payment — plan project financing accordingly.
• The 46 identified clusters are reviewed and can be expanded; an FPO or exporter outside the current list should check with the regional APEDA office whether their district/commodity qualifies or is under consideration.
• Only APEDA-registered exporters and institutions with a valid RCMC can draw FAS grants; the Farmer Connect Portal listing itself does not substitute for FAS registration if infrastructure funding is also being sought.
• Projects must comply with Sanitary and Phytosanitary (SPS) and quality standards required by the destination export market — non-compliant facilities risk rejection of assistance or clawback after sanction.
• Beneficiaries should retain all vendor invoices, work-completion certificates, and utilisation documents, as APEDA conducts physical verification before releasing subsequent instalments.

Frequently Asked Questions (FAQs)

What is the Agriculture Export Policy and how is it different from a normal subsidy scheme?

The Agriculture Export Policy is a 2018 national policy that focuses support on 46 specific product-district clusters known for strong export potential, rather than spreading assistance evenly across the country. Within these clusters, the actual money flows through APEDA's Financial Assistance Scheme, which funds infrastructure, quality upgradation, and market development.

Who implements this scheme on the ground?

The Department of Commerce sets the policy direction, but day-to-day implementation, registration, and disbursal of grants is handled by APEDA (Agricultural and Processed Food Products Export Development Authority) through its regional offices and online exporter portal.

Can an individual farmer apply directly for the pack house or cold chain subsidy?

Individual farmers are generally not the direct applicant; assistance under the Financial Assistance Scheme is extended to APEDA-registered exporters, Farmer Producer Organisations/Companies, cooperatives, SHGs, and government bodies. Farmers benefit by joining an FPO/FPC or cooperative that then applies for and manages the infrastructure on their behalf.

What is the maximum subsidy percentage available?

General applicants can get up to 40% of project cost (capped at ₹200 lakh) for export infrastructure. This rises to up to 75% for applicants from North-Eastern and Himalayan/land-locked states, Island UTs, and SC/ST or women beneficiaries, and up to 90% (capped at ₹600 lakh) for common infrastructure built by government agencies for shared use within a cluster.

Is the Farmer Connect Portal the same as the Financial Assistance Scheme?

No. The Farmer Connect Portal (farmerconnect.apeda.gov.in) is a free matchmaking platform where FPOs/FPCs and cooperatives can list themselves and connect with APEDA-registered exporters. The Financial Assistance Scheme is a separate grant programme for infrastructure, quality, and market development, requiring a valid IEC and RCMC.

Which crops/products are covered under the identified export clusters?

The 46 clusters cover a range of commodities, including grapes (Nashik), mangoes and bananas (Theni), pomegranates (Solapur), onions (Nashik), and Basmati rice (Karnal), among others across different states. The list is reviewed periodically by APEDA and the Department of Commerce.

Do I need an Import-Export Code (IEC) before applying for FAS assistance?

Yes. A valid IEC issued by the DGFT and a current APEDA RCMC are both mandatory prerequisites before an exporter or institution can apply for Financial Assistance Scheme grants.

How is the subsidy amount actually paid out?

The sanctioned grant is not paid upfront as a lump sum. It is released in instalments linked to physical and financial progress of the approved project, based on utilisation certificates, invoices, and site verification carried out by APEDA's regional office.