India’s seafood industry exports surpassed INR 60,000 crore so far in financial year 2024-25 (FY25), the Ministry of Finance recently announced, adding proposals to cut customs duties, among other measures to enhance the sector’s global competitiveness. This announcement comes in the run-up to the Union Budget 2025, poised for February 1, 2025.
Frozen shrimp emerged as the star performer, accounting for nearly two-thirds of the total seafood exports, the ministry said.
India shipped 1.78 million metric tonnes of seafood in the last financial year FY24, valued at INR 60,523.89 crore, despite facing challenges in major export markets. This represented a 2.67% increase in volume at the end of FY24 compared to the previous year.
In order to increase India’s seafood exports, the government has proposed reducing the Basic Customs Duty (BCD) on several key inputs for shrimp and fish feed production to just 5%. This move includes reductions in broodstock, polychaete worms, and various feed components.
Additionally, customs duty exemptions will apply to several inputs used in manufacturing shrimp and fish feed.
Key tax reforms for marine products
- The central board of indirect taxes and customs (CBIC) has already implemented several tax reforms to support the aquaculture industry:
- Mineral and vitamin premixes: BCD reduced to 5% for these essential feed ingredients.
- Aquatic feed components: Tax reductions on krill meal, fish lipid oil, crude fish oil, algal prime (flour), and algal oil.
- Research and development: To encourage innovation, BCD on insect meal and single-cell protein derived from natural gas has been reduced.
- Aquatic feed manufacturing: The BCD on prawn and shrimp feed, as well as fish feed, has also been cut to 5%.
US leads Indian seafood exports
Last financial year, the United States continued to remain India’s top importer, accounting for 34.53% of the total export value (USD 2.55 billion). Frozen shrimp was the most popular product, making up 91.9% of exports to the US.
China emerged as the second-largest market importing 451,000 metric tonnes worth USD 1.38 billion. Japan ranked third, followed by Vietnam, Thailand, Canada, Spain, Belgium, UAE, and Italy, respectively.
Source: Business Standards
