Shrimp farmers will now get all the benefits of the scheme of an agricultural product such as lower freight rates and higher returns on exports. It is said that the average price of Rs230-240 per kg for shrimp will certainly go up. As per the directive from the director general of foreign trade, shrimp export has been included under the Vishesh Krishi Gram Udyog Yojana and exporters will be eligible to a duty repayment of 3.5% of the on-board freight of the commodity exported.
It is said that the step will lift sagging exports of Indian black tiger shrimp, which has gone down by Rs560 crore to about Rs3,800 crore in fiscal 2008 primarily due to an anti-dumping duty in the US and a market dominated by the cheaper vanammei variety. As the shrimp included under the agricultural product it will boost the industry, informed P. Brahmanandan, managing director of export house Devi Seafoods.
Anwar Hashim, national president of the Seafood Exporters Association of India, expressed that although the government has agreed to consider only shrimp under the scheme, this is still a welcome move as shrimp exports make up more than 50 percent of India’s total marine exports worth about Rs 8,000 crore.
The commerce ministry has evolved the scheme to promote the export of agricultural products including fruits, vegetables and dairy products. According to Hashim the shrimp industry would have to pass on the benefit of the duty repayment to farmers and fishermen, and that in turn will lead to a better return on their produce.
