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Vishesh Krishi and Gram Udyog Yojana (VKGUY)
Special Agriculture and Village Industry Scheme
Keeping in view the objective of Foreign Trade Policy to promote employment generation in rural and semi urban areas, Vishesh Krishi And Gram Udyog Yojana has been expanded to include export of Agricultural Produce and their value added products; Minor Forest Produce and their value added variants; Gram Udyog Products; and Other Products, as notified from time to time.

Duty Credit Scrip benefits are granted with an aim to compensate high transport costs, and to offset other disadvantages. Exporters, of notified products.

The objective of the Vishesh Krishi Gram Udyog Yojana (VKGUY) is to promote exports of:

• Agricultural produce and their Value added products
• Minor Forest Produce and their value added variants
• Gram Udyog Products
• Forest Based Products

they shall be entitled for Duty Credit Scrip equivalent to 5% of FOB value of exports (in free foreign exchange) for exports made from 27.8.2009 onwards. However, reduced rate of 3% is applicable in such cases where exporter has also availed benefits of Drawback, at rates higher than 1%; or Specific DEPB rate (i.e. other than Miscellaneous Category or Advance Authorization or Duty Free Import Authorization for import of inputs (other than catalysts, consumables and packing materials) for the exported product for which Duty Credit Scrip under VKGUY is being claimed. Additional 2% rate, over and above the 5% or 3%, is admissible for products( Flowers, Fruits, Vegetables and other products.......) , import of Cold Chain Equipment, this Incentive Scrip shall be freely transferable amongst Status Holders as well as to Units in the Food Parks.

All Status Holders shall be incentivised with duty credit script equal to 10% of FOB value of agricultural exports which can be used for duty free import / procurement of capital goods related to infrastructure meant for agro-processing to promote agricultural exports.

The Duty Credit may be used for import of inputs or goods including capital goods, provided the same is freely importable under ITC (HS).

Exporters shall have the option to apply for benefit either under the Focus Market Scheme or under the Focus Product Scheme or under Vishesh Krishi and Gram Udyog Yojana in respect of the same exported product/s.

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