Raising the limit from 1 per cent to 3 per cent of FOB value stabilises supply chains and strengthens India’s export competitiveness

Union Budget 2026 increases the duty-free import limit for seafood from 1 per cent to 3 per cent of FOB value, reflecting a strategic effort to balance global trade integration with domestic fisheries development. The adjustment is expected to stabilise raw material availability for processors, enhance export competitiveness, and support livelihoods in coastal and aquaculture-dependent regions.

Ensuring Supply Chain Efficiency

The higher duty-free threshold provides domestic seafood processors with consistent access to quality raw materials, enabling better inventory management, reduced production costs, and adherence to international quality standards. This ensures that India’s seafood industry can scale efficiently while remaining competitive in premium global markets.

Boosting Export Potential

By facilitating easier access to imports, the policy strengthens India’s export-oriented fisheries sector, allowing processors to maintain high-quality output and meet international demand. The move complements domestic production without displacing indigenous fishers, ensuring that local livelihoods and small-scale aquaculture remain central to the sector’s growth.

Linking Fisheries to Rural and Agri Economies

Fisheries and aquaculture are closely tied to rural economies through feed production, processing, and allied services. Stabilising supply and supporting processing infrastructure directly enhances income opportunities for farm-linked businesses and coastal communities, while enabling integration of aquaculture into larger agri-value chains.

Strategic Policy Outlook

Raising the duty-free import limit from 1 per cent to 3 per cent signals measured trade liberalisation, balancing global market engagement with domestic sector protection. Budget 2026 positions India’s fisheries sector as a globally competitive, livelihood-centric growth engine, combining export expansion, supply chain efficiency, and rural economic resilience.

— Suchetana Choudhury (suchetana.choudhuri@agrospectrumindia.com)