The Hindu Business Line : Branded seafood may turn affordable

The excise duty exemption on fish, meat and poultry preparations is welcome but does not yet translate into any significant benefit for the industry, according to representatives of these industries.

This is a step in the right direction to encourage domestic markets and the organised sectors. But infrastructure requirements, such as cold chain and organised retail, must be addressed, they say.

Branded seafood eligible for concession is at best a nascent market, according to Mr Elias Sait, Secretary General, Seafood Exporters Association of India.

Just handful

There are just a handful of seafood brands. The price reduction due to excise duty concession will make these products affordable for domestic buyers, he said.

The anticipated entry of supermarket chains would widen the markets in the urban and semi-urban centres. So lower cost would bring benefit in the long term, he said.

The seafood industry expects the domestic market to underpin its growth in the export markets. Any measure to encourage domestic markets is good, he said.

No instant benefits

According to Mr S. Santhanakrishnan, President, Society of Aquaculture Professionals, the move is not likely to bring immediate benefits. It must be followed up with efforts to promote the domestic market. Over the past 3-4 years some brands have struggled to gain a foothold — their total sales is estimated to be Rs 20-25 lakh a month, he said.

Poultry and meat products suppliers, too, voiced similar sentiment. The concession, though welcome, will not have any immediate impact.

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