The coastal town of Veraval in Gujarat is experiencing a wave of optimism following the announcement of new measures in Budget 2026 that ease import regulations for crucial inputs used in seafood processing. This development promises to significantly boost Gujarat's marine export industry, which plays a vital role in India's seafood trade.
Veraval: The Nerve Centre of Gujarat's Fisheries Trade
Known as the nerve centre of Gujarat's fisheries trade, Veraval handles an impressive volume of nearly 5 lakh metric tonnes of marine catch annually. This bustling port town transforms a variety of local species—including ribbon fish, pomfret, tuna, and Bombay duck—into high-quality exports that find their way to dining tables across the globe.
Key Budget 2026 Measure: Duty-Free Import Limit Increased
The most significant change for marine exporters in Veraval is the increase in the limit for duty-free imports of specialised inputs used in seafood processing. The limit has been raised from 1% to 3% of the previous year's export turnover. This adjustment addresses a long-standing request from industry stakeholders.
Finance experts and industry representatives have welcomed this move, highlighting several expected benefits:
- Lower production costs for seafood processing units
- Improved profit margins for exporters
- Enhanced competitiveness in international markets
Gujarat's Dominance in Marine Exports
Gujarat, with India's longest coastline, has emerged as a major hub for marine exports, accounting for approximately 10% of the country's total seafood shipments. While fishing activity stretches along the coast from Valsad to Okha, nearly all the catch is landed at Veraval, which is home to over 125 seafood processing units.
Exporters in Veraval rely on nearly 18 specialised imported items to meet international quality and safety standards. These essential inputs include:
- Packaging materials
- Food-grade chemicals
- Coating powders
- Other processing aids
Industry Reaction and Expert Commentary
Jagdish Fofoandi, former president of the Seafood Exporters Association of India, described the announcement as "a long-awaited relief" for the industry. "This was a long-standing request from exporters, and we are happy the government accepted it. It will give a major boost to marine exports," he stated.
Broader Economic Impact
Industry stakeholders believe the benefits of these new measures will extend beyond just exporters. The positive effects are expected to trickle down to fishermen along the coast, potentially ensuring better prices for marine catch and creating increased demand throughout the supply chain.
With production costs set to decrease and international competitiveness poised to rise, Veraval's seafood trade appears well-positioned for stronger growth in the coming months. This development comes at a crucial time when global demand for quality seafood continues to grow, presenting significant opportunities for Indian exporters.
The Budget 2026 measures represent a strategic move to strengthen India's position in the global seafood market while supporting coastal communities that depend on marine resources for their livelihoods.
