The overall export of shrimp during 2017-18 was 5,65,980 tonne worth $4,848.19 million, with US continuing to be the largest market (2,25,946 tonne) for frozen shrimp.
The decision of the United States to scrap concessions to India under the Generalized System of Preferences (GSP) will not adversely impact the country’s seafood exports to the American market as most of the marine food products, including high-in-demand shrimps, enjoy ‘zero tariff’ under the current GSP regime, state-run Marine Products Export Development Authority (MPEDA) said on Friday.
“There is a widespread apprehension that the decision will affect the seafood exports from India to the US, which is a major importer of our marine products. But, such an apprehension is unfounded,” said KS Srinivas, chairman, MPEDA.
The GSP scheme, launched in 1974 by the US , aims to assist developing countries in increasing their exports by facilitating duty-free entry for thousands of products from designated beneficiary countries.
MPEDA made a detailed analysis and 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 the US will not be adversely affected as these enjoy zero tariff at present under the GSP regime,” Srinivas said.
India usually exports seafood worth $2,300 million to the US market with frozen shrimp as the flagship item of exports. However, frozen shrimp currently enjoys zero tariff and is not covered under the GSP regime.
“Moreover, the 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 FY18, India shipped 13,77,244 tonne of seafood that earned $7.08 billion (Rs 45,106.89 crore), with frozen shrimp and fish continuing to be the principle export items. US, 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 tonne worth $4,848.19 million, with US continuing to be the largest market (2,25,946 tonne) for frozen shrimp and accounting for 53% of total vannamei shrimp exports. Frozen shrimp was the principle item of exports to the US with a share of 95.03% in dollar value.