Krishi Udan Scheme
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.
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.
| 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. |
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.
The Krishi Udan Scheme offers the following benefits:
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:
These crops are an integral part of India’s agricultural sector and are grown in large quantities across the country.
The procedure to apply for the Krishi Udan Scheme is as follows:
The following documents are required to apply for the Krishi Udan Scheme:
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.
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