By:

Devika Niar
Sumeet Shekhar Neeraj
Sucharita Rongali

Vishesh Krishi and Gram Udyog

Yojana
India’s tryst with
destiny

“Everything else can wait,

but not Agriculture”

Jawaharlal Nehru, August 14-15, 1947

 Facts & Trends
• 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) Exports
• 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.

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)

 India’s Agri-Export Potential
• 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.
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

 Entitlement
• 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.

Thank You