In the Union Budget 2024, Finance Minister Nirmala Sitharaman has proposed a reduction in customs duty on fish feeds. Fish feeds, essential for the nourishment of aquatic species, are widely used in the marine industry for their high nutritional value, including vital minerals and nutrients. To boost seafood exports, the minister has suggested lowering the basic customs duty (BCD) on specific broodstocks, polychaete worms, shrimp, and fish feed to 5%.
India, with a record fish production of 17.545 million tonnes in FY 2022-23, ranks as the third-largest fish-producing country globally, contributing 8% to world production and about 1.09% to the nation’s Gross Value Added (GVA), with over 6.72% of the agricultural GVA. This sector holds significant growth potential, necessitating dedicated policy and financial support for sustainable and inclusive development.
In the 2023-24 fiscal year, India exported 1.781 million tonnes of seafood valued at INR 60,523.89 crore (USD7.38 billion), with frozen shrimp being the primary export item in both quantity and value. The USA and China emerged as the leading importers of Indian seafood. Seafood exports increased by 2.67% in quantity during FY 2023-24. The proposed reduction in customs duties aims to further encourage exports, boost local manufacturing, and enhance domestic value addition.
Additional notable reductions in customs duties related to the sector include:
- A 5% reduction on insect meal for use in R&D for aquatic feed manufacturing
- A 5% reduction on single-cell protein derived from natural gas for R&D in aquatic feed manufacturing
- A decrease from 30% to 5% on SPF polychaete worms
- A reduction to 0% on pre-dust breaded powder used in seafood processing
Source: Tax Scan
