INDIA TO TEMPORARILY LIFT IMPORT DUTIES ON SHRIMP BROODSTOCK AND FEED

India to temporarily lift import duties on shrimp broodstock and feed. India has suspended import duties on shrimp broodstock, aquafeeds and feed ingredients, but some in the industry are wary of the measure.

Politicians hope that the temporary suspension of import duties will reduce production costs for shrimp farmers. India’s finance minister, Nirmala Sitharaman, told reporters at a press briefing that “tariffs are being reduced on certain inputs needed for shrimp farming to boost their exports.” Benefits will be valid for a set period – from February 2, 2022 to May 1, 2022.

While this appears to be giving a boost to India’s shrimp sector, local reports say the industry is wary of the impact of these measures.

Marine Products Export Development Authority (MPEDA) sources say the move should lower production costs for farmers struggling with disease outbreaks, low shrimp prices and logistical problems caused by the Covid-19 pandemic.

Shrimp production in India depends on imports of larvae, brine shrimp and shrimp broodstock. The previous import duty for Vannamei and tiger shrimp broodstock and brine shrimp was 10 percent. Removing this duty in the 2022 budget will help the industry import more and increase production volumes.

A 15 percent import duty on frozen krill, squid and mussels used as feed in hatcheries has also been abolished. Both squid and mussels are available in India, but hatcheries prefer imported varieties as they are more likely to be free of pathogens.

A 5 percent duty on shrimp feed used on farms has also been suspended. This budget provision has reportedly been approved by the aquaculture sector, but its impact on local feed companies remains to be seen. Local aquafeed prices have risen through 2021 as soybeans, a key feed ingredient, have become more expensive. The shortage of soybeans has forced several companies to switch to imported feed.

Source: Fishretail.ru