The three fold increase in the limit of duty free import of certain inputs used in processing by the seafood industry is expected to increase share of value added products in India’s seafood export basket. This move will also help to increasallowwdod exports by bringing down the cost of production at a time when the industry is facing a crisis of high US tariffs, said industry experts. According to industry edtimates, value added products account for about 11% of India’s total seafood exports of more than USD 7 billion as compared to its competitors like Vietnam and Thailand, which have more than 30% share of value added products in their total seafood exports.
“The share of value added products in India’s total exports is very low as compared to our competitors. The increase in duty free import limit will lead to an increase in export of more value added products,” said Jagdish Fofandi, a leading seafood exporter from Gujarat and former president, SEAI.
“The share of value added products in India’s total exports is very low as compared to our competitors. The increase in duty free import limit will lead to an increase in export of more value added products,” said Jagdish Fofandi, a leading seafood exporter from Gujarat and former president, SEAI.
It was a long standing demand of the Seafood Exporters Association of India (SEAI) to allow duty free import of various ingredients, packaging material etc in order to increase competitiveness of Indian exporters against their counterparts.
“We need imported ingredients for the high end value added products. The increase in the limit of duty free import of these inputs will help us to offer more value-added products for the export markets,” said G Pawan Kumar, president, SEAI.
The limit of duty free import 1% of FOB value was introduced in the 2005 budget. The duty free imports would be allowwd for 18 specific items, which include bread crumbs, citric acids, batter, food additives etc.