India's Fisheries Sector Set for Major Boost in 2024-25 Budget

Amidst a global economy with a positive outlook yet political uncertainties, India’s economic growth continues to be good with a low and stable inflation rate. The growth is expected to remain strong in the years ahead. Termed as the ‘sunrise sector’ of the Indian economy, with the highest average decadal growth of 8.9% (FY 2014-2023) amongst allied sectors under Agriculture, the Indian Fisheries sector continues to make its mark and grow at a very healthy pace.

India is currently, the 2nd largest fish producing country with around 8% share in global fish production and a record high fish production of 174.45 lakh tonnes (2023-24). India also stands at 2nd in aquaculture production and is one of the top shrimp producing and seafood exporting nations in the world. The sector provides sustainable livelihoods to over 30 million people mostly within the marginalized and vulnerable communities.

With the motto of ‘Reform-Perform-Transform’, GoI continues to prioritise the development of the fisheries sector as a key driver towards a Viksit Bharat by 2047. In continuation to the launch of transformative schemes and initiatives in the past, the Budget Announcement 2024-25 increases the budget allocation for the fisheries sector and provisions to address major sectoral challenge of high operational and production cost.

A total budgetary allocation of Rs. 2,616.44 crore has been made for the Department of Fisheries (GoI) for the year 2024-25 against Rs. 1,701.00 crore (Revised Estimate) during the year 2023-24. The overall budget of the Department of Fisheries (GoI) for the financial year 2024-25 has been increased by 54% as compared to the allocation during the year 2023-24. For the year 2024-25, Rs. 2,352 crore has been allocated for Pradhan Mantri Matsya Sampada Yojana (PMMSY) scheme; this allocation is 56% more than the allocation of Rs. 1,500 crore made during the year 2023-24.

To ensure availability of quality brood for quality seed, Finance Minister Smt. Nirmala Sitharaman announced the financial support for setting up a network of Nucleus Breeding Centre (NBC) for shrimp brood stocks. Further, financing for shrimp farming, processing and export will be facilitated through NABARD. Establishment of state-of-art facilities in NBCs will improve the genetic quality of aquaculture species for higher productivity and quality, reduce the dependence on import of shrimp brood stock. This is a welcoming step to promote the shrimp industry, as shrimp is a major contributor to seafood export. Shrimp exports have significantly growth to Rs. 40,013 crore in 2023-24 from Rs. 8,175 Crore in 2011. In 2023-24, the export of frozen shrimp was to the tune of 7.16 lakh ton worth Rs. 40,013 crore.

Under Fisheries Infrastructure Development Fund (FIDF), concessional finance support will be provided to private entrepreneurs and investors for setting up of shrimp aquaculture facilities, processing plants and export related infrastructure. The investments made in infrastructure, adoption in technology and improving fisheries’ practices will translate into higher production and productivity, better quality, and increased efficiency across the shrimp value chain. New avenues shall thus open up with enhanced production of quality shrimp value-added products for meeting the demand of the global as well as domestic markets.

To strengthen India's shrimp farming industry globally, import duty reductions on key inputs are proposed for lowering production costs and increase revenues & profit margins. Basic Customs Duty (BCD) on shrimp broodstock (Litopenaeus vannamei and Black Tiger/ Penaeus monodon) will be reduced from 10% to 5%, on polychaete worms from 30% to 5% and on shrimp and fish feed from 15% to 5%. Further, various inputs like mineral and vitamin pre mixes, krill meal, fish lipid oil and crude fish oil, algal prime (flour) and algal oil, artemia and artemia cyst have been exempted from custom duties.

Further, to strengthen India's position as a leader in value-added fish processing, import duties on value-added fish processing ingredients - pre-dust breading powder duty has also been removed.

Finance Minister also announced that the Government will bring out National Co-operation Policy for systematic, orderly and overall development of the co-operative sector. Development of Fisheries Co-operatives as per the holistic national policy will empower the fishers and fish farmers in carrying out various fisheries value chain activities in an organised manner. This is expected to enhance their bargaining power and facilitate market linkages for better value creation and value realization.

To sum up the strategic support for the fisheries sector in the Budget 2024-25 will lead to inclusive and holistic development of the sector by providing the required fillip to enhance production and productivity of fish, fish seeds and fish value added products.