US rolling back sops won’t hurt shrimp exports: MPEDA
Marine Products Export Development Authority (MPEDA) has allayed fear of the impact of the US lifting concessions to India under the Generalized System of Preferences (GSP) on shrimp exports.
MPEDA feels the withdrawal of concessions by the US, a leading market for Indian seafood exporters, will not roil them as most of the marine food products, including high-in-demand shrimps, enjoy ‘zero tariff’ under the current GSP regime.
“There is a widespread apprehension that the US decision will affect the seafood exports from India to America, which is a major importer of our marine products. But such an apprehension is unfounded,” said K S Srinivas, chairman of MPEDA.
In an analysis MPEDA found that there would not be any immediate setbacks anticipated due to withdrawal of GSP benefit in seafood exports, he added. “The exports of prepared and preserved shrimps and crab to America will not be adversely affected as these enjoy zero tariff at present under the GSP regime,” Srinivas pointed out.
India usually exports seafood worth $2,300 million to American market with frozen shrimp as the flagship item of exports. The frozen shrimp is exempted from tariff and is not covered under the GSP regime.
“Moreover, exports of other items such as frozen fish and frozen cephalopods are also not currently benefited under the GSP. Hence, the withdrawal of GSP will not affect our seafood exports to US,” he noted. In FY2018, India shipped 1.37 million tonnes of seafood that earned $7.08 billion (or ~45,106.89 crore), with frozen shrimp and frozen fish continuing to be the principal export items. USA, the leading destination for Indian seafood in value terms, imported seafood worth $2,320.05 million.
The overall export of shrimp during 2017-18 was 5,65,980 tonnes in volumes, valued at $4,848.19 million, with USA continuing to be the largest market (2,25,946 tonnes) for frozen shrimp and accounting for 53 per cent of total Vannamei shrimp exports.