The US decision to scrap concessions to India under the Generalised System of Preferences will not adversely impact seafood exports to that country as most marine food products, including high-in-demand shrimps, enjoy zero tariff under GSP,says a top export development authority.
"There is widespread apprehension that the US decision will affect 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 the Marine Products Export Development Authority (MPEDA).
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 said in a release here.
India usually exports seafood worth USD 2,300 million to U.S.A., with frozen shrimp being the flagship item of exports.
However, frozen shrimp currently enjoys zero 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 benefitted under the GSP. Hence the withdrawal of GSP will not affect our seafood exports to US," he noted.
In the 2017-18 fiscal, India shipped 13,77,244 Million tonnes of seafood that earned USD 7.08 billion (Rs 45,106.89 crore), with frozen shrimp and frozen fish continuing to be the principal export items.
The USA, the leading destination for Indian seafood in value terms, imported seafood worth USD 2,320.05 million.
The overall shrimp export during 2017-18 was 5,65,980 MT worth USD 4,848.19 million, with USA continuing to be the largest market (2, 25,946 MT) for frozen shrimp and accounting for 53 per cent of total Vannamei shrimp exports.
Frozen shrimp was the principal item of exports to USA with a share of 95.03 per cent in Dollar value.
The GSP scheme, launched in 1974, aims to assist developing countries increase their exports by facilitating duty-free entry for thousands of products from designated beneficiary countries.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)