The Finance Minister Nirmala Sitharaman has presented the Union Budget 2024 today before the parliament. Pertaining to the marine sector, the minister has proposed to reduce customs duty on fish feeds.
Fish feeds are highly nutritious meals rich in essential minerals and other necessary nutrients that are extremely beneficial for cultivating aquatic stocks. It is used in large scales by the marine industry. In order to promote seafood exports from the country the FM proposed to reduce the basic customs duty (BCD) on particular broodstocks, polychaete worms, shrimp and fish feed to 5 %.
With record fish production of 175.45 lakh tons in FY 2022-23, India is the third largest fish producing country in the world accounting for 8% of global production and contributing about 1.09% to the country’s Gross Value Added (GVA) and over 6.724% to the agricultural GVA. The sector has immense potential to grow hence calls for focused attention through policy and financial support for sustainable, responsible, inclusive and equitable growth.
India shipped 17,81,602 MT of seafood worth ₹60,523.89 crore (US$7.38 billion) during 2023-24. Frozen shrimp remained the major export item in quantity and value, while the USA and China became the major importers of India’s seafood. During FY 2023-24, the export improved in quantity terms by 2.67%.
The reduction of BDS for fish feed mainly aims to encourage exports. It also intends to promote local manufacturing and also to increase domestic value addition.
The other notable reduction in BCD relating to the sector include:
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