On February 1, stocks in the fishing industry soared as a result of major measures made by Finance Minister Nirmala Sitharaman to support the industry. In order to promote sustainable growth, the government intends to improve the fisheries in the Andaman and Nicobar and Lakshadweep.
Budget 2025: On Saturday, February 1, shares in fisheries stocks rose sharply in spite of the general market's weakness. This encouraging trend followed major pledges made by Finance Minister Nirmala Sitharaman in the Union Budget to support the fishing industry.Stocks
Mukka Proteins experienced an impressive intra-day increase of more than 12 percent, peaking at ₹41.08. Zeal Aqua also recovered, rising 9.6% to a high of ₹13.70 for the day. Waterbase and Apex Frozen Foods also saw an 8.4 percent increase, closing at ₹75.40 and ₹271.70, respectively. Additionally, Avanti Feeds experienced a significant increase, rising 7.7 percent to ₹762, and Godrej Agrovet contributed 7.2 percent to ₹782.
"The government intends to foster growth and sustainability by fortifying the fishing industry in Andaman & Nicobar and Lakshadweep. The Finance Minister also reiterated that 7.7 crore farmers, fishers, and dairy producers would continue to receive short-term loans via Kisan Credit Cards (KCC).
Godrej Agrovet, Apex Frozen Foods, and Avanti Feeds are among the major recipients of these programs," stated Oneeka Medh, Research Analyst at Samco Securities.
Important Budget Announcements for the Fisheries Sector: Nirmala Sitharaman, India's Finance Minister, presented a thorough plan for the country's sustainable fisheries harvesting. The reduction of customs duties on frozen fish paste and fish hydrolysate, which are essential to the aquaculture and fisheries sectors, is one aspect of this.
The budget's most important announcements focused on the sustainable growth of fisheries in India's high seas and Exclusive Economic Zones (EEZ). The Andaman and Nicobar Islands and the Lakshadweep Islands were given particular attention in order to improve their fishing industry.
Sitharaman provided important details regarding a change to the interest subvention scheme as part of the Budget's larger goal to assist the industry. In order to give people working in the fishing industry more access to financial help, the loan maximum for farmers and fishermen under this scheme would be raised from ₹3 lakh to ₹5 lakh.
The Significance of the Fisheries and Aquaculture Sector
India has a flourishing fisheries and aquaculture sector, making it the world's second-largest producer of fish. The ₹60,000 crore worth of seafood exports highlights the sector's significance to the Indian economy. The government is concentrating on creating a framework for sustainable fisheries exploitation in the Indian EEZ and high seas in order to take use of the marine sector's unrealized potential. The Andaman Islands will be the focus of this project.
Reduced Customs Duties to Help Fisheries
The government announced lowering the Basic Customs Duty (BCD) in an effort to help the industry even more. The tariff on surimi, or frozen fish paste, a vital raw ingredient used to make seafood items, will be lowered from 30% to 5%. Manufacturers should find it more economical to use fish paste to produce and export seafood items as a result of this development.
The BCD on fish hydrolysate, which is used to make feed for shrimp and fish, will also be lowered from 15% to 5%. Both the aquaculture and seafood production sectors are anticipated to gain from these changes, which will make it simpler for businesses to find necessary supplies at a reduced price.
Assistance to Farmers and Fishermen
A significant development for the fisheries industry was the expansion of the loan limit for farmers, fishermen, and dairy farmers who use Kisan Credit Cards (KCC) under the Modified Interest Subvention Scheme. These sectors will now receive more financial help and respite as the loan limit, which was previously set at ₹3 lakh, is raised to ₹5 lakh.
In order to keep the industry financially stable and enable further investment in infrastructure development and sustainable practices, the KCC scheme—which provides short-term loans to 7.7 crore farmers, fishermen, and dairy producers—will be essential.
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