While shrimp farmers want the Centre to initiate a campaign for educating Indians to consume more shrimp, exporters are planning to enhance production of high-end value-added shrimp products to take China’s share of the US market with the former facing a hefty 145% tariff on American exports.
The shrimp industry also expects the government to expedite negotiations with Europe – a lucrative market like the US – for a proposed free trade agreement.
India has seen campaigns to promote mass-consumption items like milk and eggs in the past. Now, shrimp growers want the government to help increase domestic consumption of shrimp to reduce dependence on exports.
“We have urged the government to support domestic market development with promotional campaigns to raise domestic awareness and demand for seafood. Building a robust domestic market will insulate the sector from international volatility and make Indian aquaculture more self-reliant,” said Balasubramaniam V, general secretary, Prawn Farmers’ Federation of India.
Perception among Indians that frozen is not as good as fresh is a major hurdle in increasing shrimp consumption in the country, say industry veterans.Shrimp farmers also demanded exemption from Goods and Service Tax (GST) to make shrimp more affordable to consumers. “The current GST on frozen seafood and branded seafood products is counterproductive. Globally, frozen seafood is the preferred route for maintaining quality and shelf life. Exempting frozen and branded seafood products from GST will make them more affordable to consumers and viable for the producers and processors,” said Balasubramaniam.The federation also sought removal of import duties on shrimp feed inputs and broodstock during India’s proposed bilateral trade pact negotiations with the US.
Exporters are also looking at some of the emerging opportunities due to the pause on higher tariffs by the US.
“India is mainly a mutton and chicken market, followed by fish, and then shrimp. Promoting shrimp in the domestic market is good, but the acceptance may not come easily,” said Pawan Kumar G, president, Seafood Exporters Association of India (SEAI).
Exporters believe that the industry should now focus on producing high-end value-added products for the US. “With the tariffs now back to 10% from 26%, we are on a level playing field with our closest competitor Ecuador,” said Kumar.
With China facing a minimum of 145%, Indian exporters are now eyeing the value-added shrimp products market of the US, which was dominated by China. “With exports of value-added products from China to the US becoming expensive due to the high tariffs, we have an opportunity to increase our export of high-end value-added shrimp products,” said Kumar.
