Krishi Udan Scheme is a central government scheme initiated to provide seamless, cost-effective, time-bound air transportation and associated logistics for all agri-produce. The scheme is sponsored by the Ministry of Civil Aviation and implemented by AAI Cargo Logistics and Allied Services Company Ltd. The objective of the scheme is to increase the share of air transport in the modal mix for transportation of Agri-produce and improve value realization. Krishi Udan 2.0, proposed in 2021, has allocated Rs. 1000 crores for the scheme, with additional funds to be allocated.
Scheme Overview
The Krishi Udan Scheme offers subsidies to airlines provided by Central, State and Airport authorities. The scheme is applicable to all agricultural producers, especially from Northeast, hilly and tribal regions of India. Participating airports include 58 airports across India listed under the scheme. The scheme covers perishable agricultural products such as milk, meat, fish, fruits, vegetables, flowers and processed products. The scheme offers a waiver of airport charges such as parking charges and terminal navigation landing charges on select airports if the agricultural cargo is over 50% of the total chargeable weight carried.
- Scheme Modified: Krishi Udan 2.0, proposed in 2021
- Scheme Fund Allocated: Rs. 1000 crores for Krishi Udan Scheme, additional funds to be allocated for Krishi Udan 2.0
- Type of Government Scheme: Central Government of India
- Sponsored / Sector Scheme: Sponsored by the Ministry of Civil Aviation and implemented by AAI Cargo Logistics and Allied Services Company Ltd.
- Website to apply: www.aai.aero
- Helpline No.: 18002660743
Features
| Feature | Details |
| Costing | Subsidies provided to airlines by Central, State and Airport authorities |
| Eligibility | Open to all agricultural producers, with focus on Northeast, hilly and tribal regions of India (What about the other parts of India. Is it applicable or not?) |
| Applicable Products | Milk, meat, fish, fruits, vegetables, flowers and other perishable agricultural produce |
| Participating
Airports |
58 airports across India listed under the scheme |
| Subsidies | Waiver of airport charges such as parking charges and terminal navigation landing charges on select airports if the agricultural cargo is over 50% of the total chargeable weight carried |
| Objective | To provide seamless, cost-effective, time-bound air transportation and associated logistics for all agri-produce and increase the share of air in the modal mix for transportation of Agri-produce. |
Latest News about the scheme
The scheme will be implemented at 53 airports across the country, with a focus on the northeast and tribal regions. The Union aviation ministry plans to pilot the scheme for six months, with amendments based on the experience of stakeholders. The Krishi Udan scheme has been formulated with support from AAI Cargo Logistics and Allied Services Company Limited, a subsidiary of the Airports Authority of India and Invest India, India’s national investment promotion agency. The scheme offers a full waiver of charges such as landing and parking for Indian freighters at selected airports.
Union aviation minister J M Scindia said that the Krishi Udan scheme would open up new avenues of growth for the agriculture sector by removing barriers in the supply chain, logistics and transportation of farm produce. The convergence between the agriculture and aviation sectors is possible due to the evolutionary possible use of biofuel for aircraft in the future, the use of drones in the agriculture sector and greater integration and value realization of agricultural products through schemes like Krishi UDAN.
The Krishi Udan scheme will create airside transit and trans-shipment infrastructure at eight airports, including Bagdogra, Guwahati, Leh, Srinagar, Nagpur, Nashik, Ranchi and Raipur. Seven focus routes and the agro products to be flown from there have been identified, including Amritsar-Dubai for baby corn, Darbhanga-rest of India for litchis, Sikkim-rest of India for organic produce, Chennai, Visakhapatnam and Kolkata – far east for seafood, Agartala-Delhi and Dubai for pineapple, Dibrugarh to Delhi and Dubai for mandarin and oranges and Guwahati-Hong Kong for pulses, fruits and vegetables. The Krishi Udan scheme is expected to benefit farmers, freight forwarders and airlines.
Benefits
The Krishi Udan Scheme offers the following benefits:
- Ensures seamless, affordable and timely air transportation for all the perishable agricultural produce
- Facilitates the transportation of agri-produce, including horticulture, fishery, livestock, and processed products, from one place to another through special airplanes
- Increases the share of air in the modal mix for transportation of Agri-produce
- Improves value realization through better integration and optimization of Agri-harvesting and air transportation
- Contributes to Agri-value chain sustainability and resilience under different and dynamic conditions
Drawback
One of the limitations of the Krishi Udan Scheme is that it may not effectively cater to the needs of small farmers who might not have sufficient agricultural produce to take advantage of the scheme.
The Krishi Udan Scheme primarily focuses on the transportation of fruits, vegetables, flowers and other perishable agricultural products. However, there are several other types of crops that are not covered under the scheme, such as:
- Cereals – wheat, rice, maize, barley and oats.
- Pulses – lentils, chickpeas, beans and peas.
- Oilseeds – soybean, sunflower, groundnut and sesame.
- Spices – cumin, coriander, turmeric and cardamom.
- Sugarcane
- Cotton
- Tea and coffee
These crops are an integral part of India’s agricultural sector and are grown in large quantities across the country.
How to Apply?
The procedure to apply for the Krishi Udan Scheme is as follows:
- Visit the AAI Cargo Logistics and Allied Services Company Ltd website – www.aai.aero
- Register and login to the website
- Fill in the required details in the application form
- Upload the necessary documents
- Submit the application
Documents Required
The following documents are required to apply for the Krishi Udan Scheme:
- Aadhar Card
- PAN Card
- Bank Account Details
- Certificate of Registration of the Company/Firm
- FSSAI License
- Agricultural Produce Marketing Committee (APMC) Certificate
- Transport Vehicle Registration Number
Conclusion
In conclusion, the Krishi Udan Scheme is a central government-sponsored initiative that aims to provide seamless, cost-effective and time-bound air transportation and associated logistics for all agri-produce. The scheme covers perishable agricultural products, including milk, meat, fish, fruits, vegetables, flowers and processed products. The Krishi Udan Scheme offers subsidies to airlines provided by Central, State and Airport authorities. The scheme has been modified in its second phase, Krishi Udan 2.0, with Rs. 1000 crores allocated for it, with additional funds to be allocated. The scheme has identified seven focus routes and products to be flown from there. While the scheme offers several benefits, including increased value realization and improved integration, it may not cater to the needs of small farmers and other crops not covered under the scheme. Overall, the Krishi Udan Scheme has the potential to contribute to the sustainability and resilience of the Agri-value chain.
