The RELIEF Scheme: ECGC & Logistics Subsidies for Agro-Exporters

Geopolitical conflicts in the Red Sea and Middle East have caused widespread vessel diversions around Africa, severe container shortages, arbitrary freight surcharges, and extended transit times. For Indian agro-exporters, mitigating these spikes in inland and ocean freight is essential to remain competitive in Gulf and African markets.

The RELIEF Scheme

To support affected trade, the Government and ECGC introduced the ₹497 crore RELIEF (Resilience & Logistics Intervention for Export Facilitation) Scheme. Launched on 19 March 2026 as a time-bound measure, it has three parts: up to 100% ECGC risk cover, on top of existing cover, for shipments with bills of lading dated 14 February to 15 March 2026; government-supported cover of up to 95% for consignments shipped from 16 March to 15 June 2026; and partial reimbursement of up to 50% of extraordinary freight and insurance surcharges, capped at ₹50 lakh per exporter, for MSME exporters without ECGC cover. The EPM steering committee reviews the dates, so check the current window with ECGC before you ship.

LIFT: Inland Transport Subsidies

Moving bulk agro-commodities from landlocked production regions to major ports can be cost-prohibitive. Separately from RELIEF, the Export Promotion Mission's LIFT (Logistics Interventions for Freight & Transport) sub-scheme neutralizes these geographical disadvantages by reimbursing up to 30% of domestic freight costs. This is capped at ₹20 lakh per IEC per year and covers transport from interior centers to ports, Inland Container Depots (ICDs), or Container Freight Stations (CFSs).

FLOW: Overseas Warehousing

The Mission's FLOW (Facilitating Logistics, Overseas Warehousing & Fulfilment) sub-scheme subsidizes the establishment or rental of overseas warehousing and display centers (such as Bharat Mart in Dubai). To bring Indian goods closer to buyers, FLOW covers up to 30% of project costs, subject to a cap of ₹10 crore over three years.

Mandatory Freight Transparency

On the regulatory front, Section 317 of the Merchant Shipping Act, 2025 now requires shipping lines to transparently list all consolidated freight charges and Terminal Handling Charges (THC) on the Bill of Lading, protecting exporters from hidden post-shipment surcharges.