November 20, 2003

Seafood Exporters Urge India Government To Abolish Market Cess On Aqua Products
 

The India government has introduced the infrastructure development cess on aqua products and horticulture products in the state.

At present, the government is collecting 0.5% market cess on aqua raw materials like shrimp, fish and crab and other fish materials.

Mainly seafood exporters urge the government to abolish the market cess on aqua materials.

"We have been procuring the Tiger shrimp and other fish materials directly from the farmers. We are not using any facility from the government. Despite this, the government has been insisting on payment of market cess," Raghunadha Reddy, the president of AP chapter of Seafood Exporters Association of India, said.

Every year, the state government gets nearly Rs 6- 8 crores market cess on aqua products. Seafood exporters in the state purchase about Rs 1400 crores worth of aqua material from farmers.

"In the name of market cess collection, the government departments mainly commercial department people harass the exporters frequently. Now the government has abolished this market cess, giving great relief to our exporters," he said.

Four days back the government issued an order to introduce 0.5% infrastructure development cess on aqua products and horticulture products, in place of the present market cess. With the cess, the government plans to create infrastructure facilities to market aqua and horticulture products.

"We are studying the government's new orders on cess. How they will work out this 0.5% and how they will spend this amount to create infrastructure facilities in the state remains to be seen," he said.