The Marine Products Export Development Authority (MPEDA) has highlighted the significant impact of the Union Budget 2024-25 on India’s marine sector. This budget introduces a series of key measures aimed at enhancing the country's aquaculture and seafood exports, ensuring sustained growth and global competitiveness.

Rationalizing Customs Duties and Enhanced Financing Facilities

A primary focus of the budget is the rationalization of customs duties to support the marine sector. Several strategic initiatives have been announced to reduce costs and enhance the competitiveness of Indian aquaculture. These include:

Customs Duty Exemptions: The budget provides exemptions for essential feed inputs such as mineral and vitamin pre-mixes, krill meal, fish lipid oil, and algal oil. These inputs are crucial for maintaining the health and growth of aquaculture species.

Duty-Free Artemia and Artemia Cysts: Artemia and Artemia cysts, vital for aqua hatcheries, will be exempt from import duties, lowering the cost of breeding and nurturing aquatic species.

Reduced Basic Customs Duty (BCD): The BCD on aquafarm and hatchery inputs, including Vannamei and black tiger broodstock, polychaete worms, and fish/shrimp feed, has been reduced to 5%. The import duty on insect meal and single-cell protein is similarly reduced to 5%.

These measures are expected to significantly enhance the competitiveness of the aquaculture and seafood export sectors by reducing input costs.

Establishment of Nucleus Breeding Centres (NBCs) for Shrimp Broodstocks

In a bid to reduce the industry's reliance on imported broodstock, the government will provide substantial financial support to establish Nucleus Breeding Centres (NBCs) for shrimp broodstocks. This initiative is poised to save the industry up to US$ 17.9 million (Rs. 150 crore) annually. Key benefits include:

Also Read : Union Budget 2024-25: Major Boost for Employment and Skill Development

Reduction in Broodstock Costs: Hatchery operators are projected to benefit from a 50% reduction in broodstock costs.

Decrease in Shrimp Seed Costs: Around one lakh farmers will see a 30% decrease in shrimp seed costs, making shrimp farming more economically viable.

NABARD’s Financing Support

The National Bank for Agriculture and Rural Development (NABARD) will play a pivotal role in facilitating financing for shrimp farming, processing, and export. The budget outlines the following provisions:

Project Financing: NABARD will cover 80% of project costs with an interest subvention of up to 3%. This financial support aims to reduce the burden on shrimp farmers and processors, encouraging more investments in the sector.

Infrastructure Development and Export Processing Units

The budget also allocates resources for the development of infrastructure to support the marine sector. This includes enhanced access to infrastructure development funds for 639 export processing units. These units are essential for maintaining the quality and competitiveness of Indian marine products on the international market.

Industry Impact and Future Prospects

The Chairman of MPEDA, Mr. DV Swamy, has emphasized that these measures will lower production costs, improve quality, and boost the international competitiveness of Indian marine products. The budget’s initiatives are expected to have a profound impact on the sector, which achieved seafood exports worth over US$ 7.16 billion (Rs. 60,000 crore) in the last financial year.

Conclusion

The Union Budget 2024-25 presents a comprehensive strategy to bolster India’s marine sector. By rationalizing customs duties, providing financial support for broodstock development, and facilitating project financing through NABARD, the budget aims to reduce costs and enhance the competitiveness of Indian aquaculture and seafood exports. With these measures in place, the sector is poised for significant growth, contributing to India's broader economic goals and the vision of Viksit Bharat (Developed India).

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX & Upstox.