Indian shrimp exporters to receive 3.5 percent of duty repayment
 

 

Indian shrimp are now included under the Vishesh Krishi And Gram Udyog Yojana (VKGUY), which would make exporters eligible for benefits such as lower freight rates and higher export returns.
 

This is a signal that the central government has recognised shrimps to be an agricultural product, and the news is sure to delight shrimp producers.

 

The inclusion of shrimp is seen as advantageous to the seafood industry, as exporters will receive a 3.5 percent on-board freight export duty repayment on top of their original 8 percent. The additional 3.5 percent will be distributed to all players in the seafood industry, including the farmers.

 

The inclusion could also help to lift depressed exports of Indian black tiger shrimp, which have been severely impacted by the US anti-dumping duty and the more popular vannamei shrimp.

 

The government has agreed to include only shrimp but it is still a good news as shrimp exports make up more than 50 percent of India's total marine exports, according to Anwar Hashim, national president of the Seafood Exporters Association of India.

 

The VKGUY scheme, which takes effect from September 1, 2004 to March 31, 2009, is meant to promote agricultural exports by providing incentives to exporters.