Aquaculture gets a safety net in Budget 2026

About this update from Avanti Feeds Limited

The Union Budget 2026 introduced several growth-oriented measures for the aquaculture industry. With an extensive coastline of over 5,000 km, India ranks as the world’s third-largest fish producer, accounting for approximately 8 percent of global output. The fiscal year 2024-25 saw India cement its global position as seafood exports reached an all-time high of Rs 62,408 crore, with shipments totaling 1.7 million metric tonnes. This trade was largely fueled by robust demand from the United States and China. Frozen shrimp continues to lead the sector's growth, accounting for 70 percent of total export value at over Rs 43,000 crore.In a move to bolster the sector, the budget proposed raising the duty-free import limit for specified inputs from 1 percent to 3 percent of the FOB (Free on Board) value of the previous year’s export turnover. Besides this, the government also aims to enhance the fisheries value chain by developing 500 reservoirs and Amrit Sarovars, alongside promoting self-employment in the animal husbandry sector.Despite a record-breaking FY25, the domestic shrimp industry is under significant stress following the imposition of a 50 percent tariff by the US - India’s top export destination. Although the American market remains unpredictable, the 2026 Union Budget and the recently signed India-EU Free Trade Agreement (January 2026) provide a vital support system. By focusing on cost-competitiveness and European market access, the government is utilizing the India-EU FTA as a strategic hedge to ensure industry resilience amid global geopolitical volatility.The government efforts to increase productivity and yields should foster a supportive environment for industry leaders like Avanti Feeds (the country's largest shrimp feed manufacturer) and Apex Frozen Foods (an integrated producer and exporter of frozen shrimp).For more research articles, visit our Moneycontrol Research page

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