India launches LIFT scheme, offers 30% freight reimbursement for Kashmir exporters
Reduced freight costs enable more competitive pricing and higher export volumes.
INDIA – India has launched the LIFT scheme under the Export Promotion Mission NIRYAT DISHA, administered by the Ministry of Commerce & Industry, providing crucial financial relief to exporters in Jammu and Kashmir.
For fresh-produce buyers and food logistics investors, this initiative makes high-value Himalayan products, such as walnuts, saffron, and apples, more competitive in global markets by mitigating the region’s landlocked logistical disadvantages.
Addressing Logistical Constraints
Jammu and Kashmir have been included among the eligible regions, enabling exporters to claim freight cost reimbursement for notified products. Exporters in the region face higher transport costs due to its landlocked geography and limited access to seaports. Goods are often transported to distant cargo terminals and ports, increasing costs and affecting market access.
The Kashmir Chamber of Commerce & Industry noted that the scheme’s introduction follows years of repeated engagement with the Ministry of Commerce & Industry and the Directorate General of Foreign Trade. KCCI President Javid Ahmad Tenga had submitted a memorandum to the Ministry highlighting the need for freight support for exporters in the region.
Scheme Details and Coverage
Under the scheme, MSME exporters can receive partial reimbursement of freight costs, with support covering up to 30 per cent of freight expenditure, excluding taxes. Financial assistance is capped at ₹20 lakh (US$24,000) per Importer-Exporter Code per financial year.
The scheme applies to shipments transported from MSME premises to Inland Container Depots, Container Freight Stations, Seaports, and Air Cargo Complexes. It is intended for exporters in regions with logistical constraints related to distance and connectivity.
Impact on High-Value Produce
The Chamber indicated that the scheme would support exports of products such as walnuts, saffron, and apples, which form part of the region’s export base. For investors in Middle Eastern and African food, these products offer high-margin opportunities.
Kashmir saffron commands premium prices globally, while walnuts and apples from the region are prized for their quality. Reduced freight costs enable more competitive pricing and higher export volumes.
Outlook for Regional Trade
KCCI stated that the initiative is expected to support participation in international trade and to contribute to the development of the export sector in Jammu and Kashmir.
For global food industry stakeholders, the LIFT scheme signals India’s commitment to unlocking value from remote production zones and creating new sourcing corridors for high-value Himalayan produce. As logistics costs decline, previously marginalized exporters gain access to mainstream supply chains
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