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Sitharaman announces sops to bolster India’s seafood industry, marine shipments
Union finance minister Nirmala Sitharaman announced policies aimed at promoting a sector impacted by increasing protectionism and US tariffs
Union finance minister Nirmala Sitharaman on Sunday announced sops to bolster India’s seafood industry and marine shipments, including a waiver of duties on imported inputs, and policies aimed at promoting a sector impacted by increasing protectionism and US tariffs.
India is a major exporter of shrimps, including to the US, accounting for 40% of America’s domestic seafood consumption. The US has slapped an effective tariff of 50% on Indian goods. The levies are over and above a 7% tax on Indian shrimp that the US charges as a countervailing duty to balance out subsidies given to Indian shrimp farmers.
The finance minister said in her budget speech that catches beyond the country’s territorial waters may be brought into the country free of duty, and such fish, which land at foreign ports, will be treated as exports. “Landing of such fish on foreign port will be treated as export of goods,” Sitharaman said.
Analysts say this will reflect higher export quantities from catches made in the specific areas spelt out in the budget.
There will, however, be guardrails to prevent misuse during fish catch, transit, and transshipment, Sitharaman said.
To put into effect changes, the budget announced amendments to the Customs Act, 1962, to extend its jurisdiction beyond the territorial waters of India for fishing, the budget document said.
A new clause is also being inserted to define Indian-flagged fishing vessels. A new section 56A is being added to provide special provisions for fishing and fishing-related activities by an Indian-flagged fishing vessel beyond territorial waters.
The budget proposed duty-free imports of specific raw materials needed by the marine-food industry, a step to promote value addition and cut costs for the industry.
The budget also provided steps to boost fishing by scrapping duties on catches by Indian vessels either in exclusive economic zones or in the high seas. The finance minister said this would generate more value in the sector, especially in marine resources extracted beyond territorial waters.
India’s free-trade deal with the EU is expected to bring relief to the sector, with the 27-country bloc agreeing to allow “full preferential access” to Indian seafood across the basket, opening up shrimp, frozen fish, and value-added seafood products.
