The Union Budget 2024-25 increases the Department of Fisheries’ budget by 54%, introduces customs duty cuts, and supports shrimp breeding centers, aiming to boost India’s seafood sector and export competitiveness.
In the Union Budget 2024-25, Finance Minister Nirmala Sitharaman announced a range of measures designed to advance India’s seafood sector. Despite facing challenges in key export markets, India achieved record seafood export volumes of 17,81,602 MT, valued at US$ 7.4 billion in FY 2023-24. The Department of Fisheries budget has increased by 54% to Rs 2,616.44 crores, with reduced Basic Customs Duty (BCD) and support for Nucleus Breeding Centres expected to revitalize the industry
The Union Budget 2024-25 allocates Rs 2,616.44 crores to the Department of Fisheries, marking a significant increase from Rs 1,701.00 crores in the previous fiscal year, a 54% rise. The Pradhan Mantri Matsya Sampada Yojana (PMMSY) receives Rs 2,352 crores for 2024-25, reflecting a 56% increase from Rs 1,500 crores allocated in 2023-24.
Key measures include reducing BCD to 5% on broodstock, polychaete worms, and shrimp and fish feed, with customs duty exemptions for various feed inputs. These steps aim to strengthen the industry, which exported seafood worth US$ 7.4 billion last year, with Vannamei shrimp alone contributing US$ 3.6 billion. Lower raw material costs will help feed manufacturers improve profit margins.
The budget outlines financial support for establishing Nucleus Breeding Centres for Shrimp Broodstock and provides assistance through NABARD for shrimp farming, processing, and export. This support is crucial for businesses with tight margins and short working capital cycles, expected to stabilize and grow the industry.
Finance Minister Sitharaman emphasized, “I propose to reduce BCD on certain broodstock, polychaete worms, shrimp, and fish feed to 5% and exempt customs duty on various inputs for the manufacture of shrimp and fish feed.”
Industry Reactions
The Marine Products Export Development Authority (MPEDA) has welcomed the budget’s provisions. Mr. D V Swamy IAS, Chairman of MPEDA, stated, “The proposed measures will substantially lower production costs, enhance quality, and improve the international competitiveness of Indian marine products.”
India’s seafood exports reached a record high in FY 2023-24. The country exported 17,81,602 MT of seafood worth Rs 60,523.89 crores (US$ 7.38 billion), a 2.67% increase in quantity from the previous year. Frozen shrimp remains the top export item, generating Rs 40,013.54 crores (US$ 4881.27 million), accounting for 40.19% of quantity and 66.12% of total dollar earnings. Major markets include the USA (2,97,571 MT), China (1,48,483 MT), and the European Union (89,697 MT).
| Importer | Share in India’s sea food exports (in US$) |
| USA | 34.53% |
| China | 18.76% |
| Japan | 5.42% |
| Thailand | 3.82% |
| Canada | 2.70 % |
| Spain | 2.65% |
| Belgium | 2.42% |
The government’s efforts to reduce customs duties and provide financial support are set to reduce production costs, enhance profit margins, and boost India’s seafood sector‘s global competitiveness. These initiatives aim to foster growth, improve export quality, and solidify India’s position as a leader in seafood exports.
Read More:
How will Indusfood contribute to the growth of India’s seafood sector and align with the recent budget initiatives?
Indusfood, India’s premier food trade show, will support the seafood sector by fostering key industry connections, showcasing innovations, and facilitating business opportunities, aligning with recent budget initiatives to enhance seafood production and exports.
© Trade Promotion Council of India. All Rights Reserved.
