Govt gives DEPB benefits to shrimp exports

In a major boost to shrimp exports, the Union government has brought shrimp production under Vishesh Krishi Grama Upaj Yojana (VKGUY) scheme, where the sector would receive an additional benefit of 3.5 per cent of the fob value of the exports under Duty Entitlement Pass Book (DEPB) plan.

BIG BOOST

The Seafood Exporters' Association of India wants items like cuttle fish and squid to be included in the DPEB scheme

Shrimp exports have been reeling under pressure due to rupee's appreciation

The government had issued a notification in this regard on Monday and has decided to extend the DEPB scheme as the industry is reeling under pressure thanks to the rupee's appreciation, tough competition from Asian rivals such as China, Vietnam, Indonesia and Thailand, anti-dumping duty imposed by the US and the advent of cheaper varieties such as Vannammei from China, Vietnam, Brazil and Thailand.  Anwar Hashim, president, Seafood Exporters Association of India (SEAI) said these two notifications would benefit the export industry and the crisis-ridden fisheries sector.  The association had submitted a memorandum to the prime minister, finance minister and Sonia Gandhi detailing the crisis and suggested various measures, including enhancement of the DEPB scheme.  But the government was reluctant to raise this and suggested the inclusion of shrimp in VKGUY so that the export sector might get an additional benefit of 3.5 per cent.  Hashim also said that other export items like cuttle fish and squid should also be included in the scheme as these items are being exported in large quantities. He said that SEAI would seek government's intervention in order to extend the scheme to other seafood items also.  The association had also urged the government to distribute diesel at subsidised rate to the fisheries sector.