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This scheme by APEDA helps Indian exporters boost their agricultural and processed food exports by providing financial Read More... support for infrastructure, quality improvements, and market development. Read less

Details

Are you an Indian exporter looking to expand your reach in the global agricultural and processed food market? The Agricultural and Processed Food Products Export Development Authority (APEDA) offers a significant opportunity through its Financial Assistance Scheme (FAS) for the 15th Finance Commission cycle, running from 2021-22 to 2025-26.

This scheme is designed to empower agri-exporters by helping them overcome common challenges and achieve their export goals. APEDA, a body under the Ministry of Commerce and Industry, provides crucial support to promote Indian agricultural and processed food products worldwide.

What Is This Scheme?

The Financial Assistance Scheme (FAS) is a strategic initiative by APEDA to provide financial aid to exporters. It focuses on three key areas: developing essential export infrastructure, enhancing product quality and standards, and expanding market reach for Indian agri-products. The scheme aims to make Indian agricultural exports more competitive and compliant with international standards.

Who Can Benefit From This Scheme?

The scheme is open to a wide range of stakeholders in the agri-export sector. This includes APEDA-registered exporters, who form the primary beneficiary group. Additionally, various organizations such as Certification Bodies accredited under the National Program for Organic Production (NPOP), State Agencies, trade bodies, Chambers of Commerce, Government agencies, Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), Farmer Producer Companies (FPCs), Cooperatives, and even individual farmers are eligible to apply for assistance. For specific components, Central and State government institutions and public sector enterprises are also covered.

Why This Scheme Is Important

In today's global market, meeting international quality benchmarks and having robust infrastructure are critical for export success. This scheme addresses these needs by offering financial assistance for setting up facilities like packhouses, cold storage, and pre-shipment treatment units. It also supports compliance with global food safety standards and helps exporters explore new markets. By doing so, it aims to increase India's agricultural export earnings and strengthen its position in the international trade landscape.

Objective

This scheme by APEDA helps Indian exporters boost their agricultural and processed food exports by providing financial support for infrastructure, quality improvements, and market development.

Benefits

Long-Term Fellowship (6-12 months) in Indian institutes:
  1. Monthly Stipend:₹40,000/- per month (different station); ₹20,000/- per month (same station).
  2. Travel Allowance:As per the parent organization's T.A. rules.
  3. Contingency Grant:₹30,000/- (maximum) for local expenses; ₹20,000/- for attending progress review meetings.
Long-Term Fellowship (6-12 months) in Foreign institutes:
  1. Monthly Stipend:US $3000/- per month (or equivalent currency).
  2. Air Travel:Economy class airfare by Air India via the shortest route.
  3. Contingency Grant:₹50,000/- (maximum) for visa, insurance, local expenses; ₹20,000/- for review meetings.
  4. Conference Grant:US $600 (up to 6 months) or US $1200 (6–12 months).

Sources and references

Eligibility Criteria

  1. APEDA registered exporters are eligible to apply for most assistance components. Central and state government institutions and public sector enterprises are eligible for specific infrastructure development support (component 1(f)).
  2. The scheme is applicable to all APEDA scheduled products.
  3. Expenditure incurred before the online application date is not eligible for assistance. Expenses after online application but before In-Principle Approval (IPA) are subject to APEDA's final decision.
  4. Exporters from North-Eastern states, difficult areas (Himalayan, landlocked states), Island Union Territories, SC/ST, and women beneficiaries can receive up to 75% assistance for all activities, while maintaining the overall financial ceiling.
  5. For SC/ST beneficiaries: Proprietary concern owner must be SC/ST. In partnership firms, SC/ST partners must hold at least 51% shares. For Pvt. Ltd. companies/LLPs/FPCs, at least 51% shares must be held by SC/ST directors/promoters. These shareholding conditions must be met for at least one year prior to application and maintained for two years post-reimbursement.
  6. For Women Entrepreneurs: The concern must exist for at least one year. For proprietary concerns, the proprietor must be a woman. For partnership firms/FPOs/FPCs/LLPs/Pvt. Ltd. companies, all partners/directors/promoters must be women.
  7. For organic products, the unit must be capable of processing under NPOP requirements.
  8. APEDA charges a processing fee of 5% + GST on the disbursed amount, deducted at the time of fund release.
  9. Applications must be submitted physically within 30 days of the online application; otherwise, it will be cancelled.
  10. For new equipment purchases, quotations must be obtained from at least three Original Equipment Manufacturers (OEMs) or authorized distributors. APEDA's assistance will be calculated based on the lowest quoted rate.
  11. For feasibility studies, quotations must be from reputed consulting firms with at least 5 years of relevant experience.
  12. Quotations must include address, GSTN, TIN, PAN, detailed product specifications, validity date, and item-wise cost. Technical brochures are also required.
  13. For projects involving civil work, APEDA's assistance is limited to Technical Civil Work, with estimates certified by a Chartered Engineer or Civil Architect.
  14. Grant is restricted to plant and machinery and technical civil work created after the online application submission. Technical civil work assistance is capped at 25% of the total eligible financial assistance.
  15. Training program details or prospectus must be submitted along with the application.
  16. Exporters must submit online quarterly export performance reports on the APEDA website.
  17. In-principle approval (IPA) from APEDA is required for all components, except for Lab testing charges.
  18. Amendments to IPA can be considered within its validity period. IPA extension requests will be reviewed on a case-to-case basis.
  19. APEDA may get projects appraised by an external agency; applications found non-viable will not be considered. IPA is granted based on eligible items and activities only.
  20. APEDA reserves the right to review charges fixed by agencies if they are not commensurate with services rendered.
  21. APEDA's decision on claim admissibility is final.
  22. Any change in ownership/management must be incorporated into the RCMC.
  23. Reimbursement is back-ended, upon claim submission and physical verification post-completion.
  24. Final claims must be submitted before the IPA expiry date.
  25. Assistance can be considered for each separate manufacturing unit if incorporated into IEC and APEDA RCMC.
  26. Disbursement is subject to actual budget allocation by the Government.
  27. Financial assistance is provided subject to the continuation of the scheme and is not carried forward beyond the plan period (2021-26).
  28. Applicants must comply with FSSAI registration/licensing and other regulatory requirements.
  29. Beneficiaries receiving assistance for integrated pack-houses, reefer vans, etc., cannot sell their units within five years of disbursement.
  30. A declaration stating no financial assistance has been availed from other state/central agencies is required. If applied elsewhere, details must be provided.
  31. APEDA reserves the right to conduct pre-inspection before placing the project before the Technical Committee.
  32. Applications with incomplete information, unsatisfactory pre-inspection reports, or non-compliance with guidelines will be rejected.
  33. All disputes are governed by Indian law and subject to New Delhi jurisdiction. Disputes will be referred to the Chairman, APEDA, whose decision will be final.

How To Apply

  1. Prepare a detailed proposal including company profile, project nature, existing and proposed infrastructure, benefits of the proposed facility, process flow charts, and market viability. The project cost must be supported by quotations (for equipment) and bills of quantity (for civil work).
  2. Submit your application online through the 'Submit FAS Application' option on the APEDA website: www.apeda.gov.in.
  3. After online submission, you will receive a track number. Print a copy of the online application and the acknowledgment sheet.
  4. Submit the printed application along with all required supporting documents physically within 30 days from the online application date. Failure to do so will result in cancellation of the online application.
  5. For new equipment, obtain quotations from at least three Original Equipment Manufacturers (OEMs) or their authorized distributors.
  6. For feasibility studies, obtain quotations from reputed consulting firms with at least 5 years of relevant experience.
  7. Ensure all submitted documents are duly self-certified. If documents are in a regional language, provide a self-certified English or Hindi translation.

Documents Required

All submitted documents must be duly signed by the Competent Authority. If original documents are in a regional language, a self-certified English or Hindi translation must accompany them.

  1. Detailed Project Report (DPR) and Chartered Engineer Certificate in the prescribed format (Annexure - I).
  2. A detailed appraisal note from the lending Bank/Financial Institution, if applicable.
  3. Certificate of incorporation/registration of the applicant, Memorandum and Articles of Association (for companies) or Bye-laws (for other entities).
  4. Annual reports and Audited Financial Statements of Accounts for the last two years.
  5. Self-attested English/Hindi version of land documents supporting land title in the applicant's name, or a registered land lease agreement with at least 15 years remaining validity.
  6. Change in Land Use (CLU) permission for the main facility land from the competent authority.
  7. Proof of freehold land or equitable mortgage free from encumbrances.
  8. Three quotations from suppliers for Plant and machinery and equipment, except for imported/proprietary items.
  9. Copies of necessary permissions from Central, State, and other statutory bodies for setting up the facility/project.
  10. A copy of the term loan sanctioned from the bank/financial institution for the project, if applicable.
  11. Drawing/layout diagram of the project duly approved by a Chartered Engineer.
  12. For applicants not availing loans, a detailed appraisal note justifying the project's feasibility, endorsed by the Competent Authority of the applicant organization.
  13. If grant assistance is availed or applied for from any other agency for the same component(s), APEDA must be intimated at the time of DPR submission. Duplication of grants for the same component(s) is not permitted.

FAQ’s

What is APEDA and what does it do?

APEDA stands for the Agricultural and Processed Food Products Export Development Authority. Established by the Government of India, its main role is to promote and develop the export of various agricultural and processed food products from India. These include fruits, vegetables, meat, dairy, cereals, honey, and many more. APEDA also helps in registering exporters, setting quality standards, improving packaging and marketing, and collecting export-related statistics. You can find more details on their official website: https://apeda.gov.in/apedawebsite/.

Can you explain the different types of support offered under the APEDA scheme?

Yes, the scheme provides financial assistance in three main categories. First, 'Development of Export Infrastructure' helps set up essential facilities like packhouses, cold storage, and pre-shipment treatment units. Second, 'Quality Development' assists in meeting international food safety standards, obtaining certifications, and acquiring lab testing equipment. Third, 'Market Development' supports exporters in exploring new markets, conducting feasibility studies, participating in trade fairs, and developing better packaging.

What are the general conditions I need to be aware of before applying?

Before applying, remember that assistance is for APEDA scheduled products only. Expenses incurred before submitting your online application are not eligible. For certain categories like North-Eastern states, SC/ST, and women entrepreneurs, higher assistance percentages (up to 75%) are available. APEDA charges a processing fee of 5% + GST on disbursed amounts. Also, ensure you submit all required documents physically within 30 days of your online application, or it will be cancelled. For equipment purchases, you need at least three quotations from different suppliers.

How do I submit my application for this scheme?

The application process is primarily online. First, you need to prepare a detailed project proposal. Then, log on to the APEDA website, www.apeda.gov.in, and find the 'Submit FAS Application' option under the Schemes menu. After successfully submitting your application online, you will get a track number. You must then print this online application along with the acknowledgment sheet and submit it physically, along with all necessary documents, within 30 days of the online submission.

What specific documents are typically required for the application?

You will generally need to submit documents like a Detailed Project Report (DPR), Chartered Engineer Certificate, company registration details, financial statements for the last two years, land ownership or lease documents, and any necessary permissions from government authorities. For equipment, at least three quotations are required. If you are taking a loan for the project, you'll need the loan sanction letter and an appraisal note from the bank. Ensure all documents are self-certified.

Is there any financial assistance available for exploring new markets?

Yes, the 'Market Development' component of the scheme is specifically designed for this. It can provide assistance for conducting feasibility studies for new markets and products. The support can be up to 50% of the cost, with a limit of ₹10 lakhs per study. Exporters from specific regions or categories, like those from North-Eastern states or SC/ST beneficiaries, can receive up to 75% assistance for these studies.

What if I have already applied for similar assistance from another government agency?

If you have availed or are in the process of availing grant assistance from any other agency for the same components, you must inform APEDA at the time of submitting your DPR. If you have already received a grant for the same component from another government agency, you will not be eligible for financial assistance from APEDA for that particular component.

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