Vishesh Krishi and Gram Udyog Yojana

By:Devika Niar

Sumeet Shekhar NeerajSucharita Rongali

“Everything else can wait,

but not Agriculture”

India’s tryst with destiny

Jawaharlal Nehru, August 14-15, 1947

• Agriculture & India (The total geographical area of India is 328.7 million hectares of which 140.3 million hectares is net sown area, while 193.7 million hectares is the gross cropped area, according to the Annual Report 2009-10 of the Ministry of Agriculture.)

• The Uruguay & Doha rounds (2001-03)• Reforms in trade policy• Vishesh Krishi and Gram Upaj Yojana 2003 FTP

(Special Agricultural Produce Scheme)• Renamed to Vishesh Krishi and Gramin Udyog Yojna in 2005 (Para 13 under

the FTP)• Agricultural and floricultural products, fruits and vegetables, animal

products and processed food products was worth US$ 8.1 billion in 2008-09, an increase of 13.88 per cent from US$ 7.11 billion in 2007-08.

Facts & Trends

India -Agricultural exports data (US $ million)*

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

Agri Exports 6037 5608 6004 5871.1 6734 7533 8001.7

%’tage to total

exports 18.2 15.2 13.5 13.4 12.8 11.8 10.2

Total Exports 33218 36822 44560 43826.7 52719.4 63843 78205.3

* Source: Indian Economic Review (GOI)

Expo r t s

• Marine Products• Rice, pulses, edible oils• Wheat & flour• Condiments and Spices• Cashew• Sugarcane, mollases & sugar• Tea • Coffee• Castor• Jute• Fruits and Vegetables- Onions, Mango, Grapes, Banana,

Tomato , Potato , Lichchi ,etc. • And various other fruit juices, agri processed products,

sliced, diced potatoes, sauce, jams & jellies etc.

India’s Agri-Export Potential

Objectives of the Scheme• Promote export of fruits, vegetables, flowers, minor forest

produce, and their value added products, by incentivizing exporters of such products (Products shall be listed in Appendix 37A of Handbook of Procedures (Vol.1) subject to occasional revisions

• Promote employment generation in rural and semi urban areas, promoting gram udyogs

• Encouraging indigenous procurement of inputs & use of domestic farm produce in agricultural exports

• To promote import / procurement of capital goods related to infrastructure meant for agro-processing eventually improving agricultural exports (quality wise & quantity wise)

Major Exporters• Sunstar overseas Ltd. Haryana

• Pearl International- New Delhi

• V. K. Udyog Ltd. Kolkata

• Navdanya Trust, New Delhi

• FAB India Ltd., New Delhi

• Kashmir Apiaries Export

• Jubilant Organosys Ltd., Noida

• IITC Organic India Ltd., Lucknow

• Duty Credit Scrip equivalent to 5% of FOB value of notified products’ exports (in free foreign exchange)

• An additional duty credit scrip equivalent to 2% of FOB value of exports (of notified products in Table 2 of Appendix 37A )

• Reduced rate of 3% of FOB value of exports in such cases where exporter has also availed benefits of:(i) Drawback at rates higher than 1%; and/or

(ii) Specific DEPB rate (i.e. other than Miscellaneous Category – Sr. Nos. 22D & 22C of Product Group 90); and/or 37

(iii) Advance Authorization or Duty Free Import & Authorization Import of inputs (other than catalysts, consumables and packing materials) for the exported product for which Duty Credit Scrip under VKGUY is being claimed.

Entitlement

“Agri. Infrastructure incentive scrip”

• Duty credit scrip equal to 10% of FOB value of agricultural exports provided that the total benefits for all status holders put together does not exceed Rs 100 Cr. on imports of:

(i) Cold storage units (including Controlled Atmosphere (CA) and Modified Atmosphere (MA) Stores); Precooling Units and Mother Storage Units for Onions,etc.;

(ii) Pack Houses (including facilities for handling, grading, sorting and packaging etc.);

(iii) Reefer Van / Containers;

and (iv) Other Capital Goods / Equipments as may be notified.

Entitlement

Thank You