India’s seafood industry has become a major player in global markets. The government has stepped up with various schemes to help exporters grow their businesses. These programs tackle different challenges that seafood exporters face daily.
Pradhan Mantri Matsya Sampada Yojana (PMMSY)
Launched in 2020, PMMSY aims to transform how India produces and exports seafood. With a budget of over Rs. 20,000 crores, it’s one of the biggest investments in this sector.
The scheme helps exporters in several key ways:
- Builds modern fishing harbours where boats can land their catch in better conditions
- Funds cold storage facilities to keep seafood fresh longer
- Supports new processing units that meet international standards
- Helps create value-added products that sell for higher prices abroad
- Trains workers in handling practices that match global requirements
For exporters, this means they can get better quality raw materials and process them more efficiently. The scheme bridges gaps in the supply chain from fishing boats to shipping containers.
Many exporters have already used PMMSY funds to upgrade their facilities. One processing unit in Kerala doubled its export capacity after installing new freezing equipment with a 30% subsidy from the scheme.
Fisheries and Aquaculture Infrastructure Development Fund (FIDF)
Started in 2018, FIDF provides loans at lower interest rates for building infrastructure. The fund has Rs. 7,522 crores available for projects that support fisheries and aquaculture.
Exporters find FIDF particularly helpful because:
- They can get loans with interest rates about 3-4% lower than market rates
- The repayment period is longer (up to 12 years) with a 2-year grace period
- It funds large projects like modern wholesale fish markets
- It supports hatcheries that produce export-quality fish and shrimp seed
- The application process is streamlined through NABARD and scheduled banks
This fund solves a major problem for exporters – finding affordable financing for big infrastructure projects. Banks often consider seafood a risky business due to its perishable nature, but FIDF changes that perception.
A group of exporters in Andhra Pradesh used FIDF to build a shared cold chain facility that reduced their spoilage rates by 15% and increased export volumes significantly.
Fisheries Kisan Credit Card (KCC) Scheme
This scheme gives fishermen and fish farmers access to quick loans for their working capital needs. Though not directly for exporters, it stabilises the supply chain that exporters depend on.
The KCC scheme works like this:
- Fishermen get credit cards with limits based on their production capacity
- They can withdraw money when needed without lengthy application processes
- Interest rates are subsidized, making loans affordable
- Insurance coverage comes built-in with the card
- Repayment terms align with harvest cycles
When suppliers have stable financing, exporters benefit from consistent quality and quantity of raw materials. This predictability is crucial when filling international orders.
In coastal Tamil Nadu, an exporter network partnered with fishermen who use KCC, resulting in a 22% more consistent supply throughout the year, including during off-seasons.
Remission of Duties and Taxes on Exported Products (RoDTEP)
RoDTEP directly tackles the cost disadvantage Indian exporters face in global markets. The scheme refunds taxes paid throughout the supply chain that weren’t previously reimbursed.
Benefits for seafood exporters include:
- Automatic tax credits through transferable electronic scrips
- Specific higher rates for frozen shrimp compared to other exports
- Refunds of state and local taxes that were previously absorbed by exporters
- WTO-compliant structure ensuring the scheme won’t face international challenges
- Reduction in paperwork compared to earlier rebate schemes
The direct impact is lower export costs, which lets exporters either increase profit margins or offer more competitive prices to international buyers.
A mid-sized shrimp exporter from Odisha reported that RoDTEP refunds amount to roughly 1.7% of export value, which translates to significant savings when operating on thin margins.
Customs Duty Reductions
Recent budgets have strategically cut import duties on inputs needed by the seafood industry. These cuts directly lower production costs.
Key reductions include:
- Lower duties on specialised feed ingredients for shrimp farming
- Reduced taxes on broodstock imports for hatcheries
- Exemptions for certain additives used in fish feed manufacturing
- Decreased duties on testing equipment required for export certification
- Lower taxes on specialised packaging materials that extend shelf life
These seemingly small changes add up. For example, feed typically represents 60-70% of costs in shrimp farming. When feed ingredients become cheaper, the entire supply chain benefits.
An exporter association calculated that recent duty reductions on key inputs have lowered production costs by approximately 3-4% for export-oriented aquaculture operations.
Budgetary Support for the Fisheries Sector
The Union Budget 2025-26 allocated record funding for fisheries development. This broad support lifts the entire sector, including exporters.
Budget highlights for exporters include:
- Funding for modern laboratories that can certify seafood for international markets
- Allocation for traceability systems required by EU and US importers
- Support for research on disease prevention in export-oriented species
- Grants for developing new processing technologies
- Resources for market research and trade promotion activities
These budget allocations address both immediate needs and long-term competitiveness of the export sector.
The allocation for traceability systems is particularly timely as major markets like the EU now require complete documentation of seafood origin and handling throughout the supply chain.
Marine Products Export Development Authority (MPEDA) Initiatives
MPEDA functions as a specialised agency focused solely on seafood export promotion. It offers targeted programs that complement broader government schemes.
MPEDA supports exporters through:
- Technical guidance on meeting import requirements of different countries
- Financial help for quality certifications like HACCP, BRC, and BAP
- Subsidy for lab equipment needed for in-house quality testing
- Organizing buyer-seller meets in target markets
- Providing market intelligence about pricing and demand trends
MPEDA’s specialized knowledge makes it a valuable resource for exporters navigating complex international requirements.
Their pre-harvest testing program has been particularly useful in preventing antibiotic residue issues that previously led to rejections in EU and US markets. Exporters who participate in this program report significantly lower rejection rates.
National Fisheries Development Board (NFDB) Schemes
The NFDB implements several schemes that strengthen the infrastructure supporting exports.
Key NFDB programs include:
- Financial assistance for technology upgradation in processing plants
- Support for acquiring refrigerated transport vehicles
- Funding for modern fish landing centers with hygienic handling facilities
- Training programs on international quality standards
- Assistance for organic certification of aquaculture farms
These programs fill specific gaps in the export ecosystem, especially for mid-sized exporters who need targeted support.
A cluster of small exporters in Gujarat used NFDB assistance to jointly purchase refrigerated trucks, reducing transportation costs by 25% while improving product quality on arrival at processing plants.
Trade Promotion and Facilitation
Beyond direct financial support, the government has streamlined trade procedures to reduce delays and compliance costs.
Key trade facilitation measures include:
- Single window clearance for export documentation
- Online platform for applying and tracking export incentives
- Pre-shipment testing facilities at major ports
- Mutual recognition agreements with key importing countries
- Simplified procedures for high-frequency exporters
These measures save time and reduce transaction costs, which can be significant in the perishable seafood business.
The average time for export clearance has dropped from 3-4 days to less than 24 hours at major ports handling seafood, directly impacting product freshness and reducing the need for additional cold storage.
Regional Infrastructure Development
The government’s focus on logistics infrastructure has indirect but substantial benefits for seafood exporters.
Important developments include:
- Dedicated handling facilities for perishables at major airports
- Cold chain integration between production hubs and ports
- Special economic zones focused on seafood processing
- Improved road connectivity to coastal areas
- Modernized fishing harbors with export-oriented facilities
These infrastructure improvements reduce transit times and preserve quality, critical factors for seafood exports.
The dedicated perishable cargo centre at Kochi International Airport has reduced handling time by 60% and provides temperature-controlled storage that maintains optimal conditions for different seafood products.
Marine Export Insurance Support
Recognizing the unique risks in seafood exports, the government has partnered with insurance providers to offer specialised coverage.
Key features include:
- Subsidized premium rates for small and medium exporters
- Coverage for quality rejections at the destination
- Protection against payment defaults by foreign buyers
- Insurance for transport delays affecting perishable cargo
- Special provisions for high-value live seafood exports
This risk mitigation enables exporters to explore new markets and buyers with greater confidence.
A consortium of small exporters from Maharashtra was able to enter the Japanese market, which is known for stringent quality requirements, after securing comprehensive export insurance that protected them against rejection risks.
Conclusion
The range of government schemes available to Indian seafood exporters forms a comprehensive support system. From production to market access, these programs address various challenges exporters face.
By effectively using these schemes, exporters can:
- Reduce production and processing costs
- Improve product quality and compliance
- Access affordable financing for expansion
- Mitigate risks inherent in international trade
- Explore new markets with greater confidence
As global seafood demand continues to grow, these government initiatives position Indian exporters to increase their market share. The focus on quality, sustainability, and value addition ensures that India’s seafood export growth will continue in the coming years.
FAQs
Which scheme offers the best financial benefits for new seafood exporters?
For new exporters, PMMSY typically offers the most direct benefits through capital subsidies of 30-50% for setting up processing units. This significantly reduces the initial investment needed to start export operations.
How long does it take to get approval under schemes like FIDF?
The approval process for FIDF typically takes 2-3 months from application to final approval. Having all required documents ready and working through empanelled banks can help speed up the process.
Can exporters combine benefits from multiple schemes?
Yes, exporters can benefit from multiple schemes simultaneously as long as they don’t claim the same component under different schemes. For example, you can get a processing equipment subsidy through PMMSY while using RoDTEP for tax refunds on exports.