Fishmeal industry urges Centre to reduce GST rates on fish meal and its by-products

The fishmeal industry that makes aquatic feeds has asked the Centre to reduce GST rates on fish meal and its by-products such as fish soluble paste/stick water and fish oil. The existing rates are 5 per cent for fish meal, 18 per cent for fish soluble paste and 12 per cent to fish oil.

The industry, majority of which are operating under MSME, has been suffering due to GST that was earlier exempted from VAT and other indirect taxes.

In its pre-budget memorandum, Dawood Sait, national secretary of All India Fishmeal & Oil Manufacturers & Merchant Association requested the Finance Minister to reduce GST on fish meal and fish soluble paste to zero per cent and fish oil from 12 to 5 per cent.

Higher taxes in India have escalated the cost, resulting in increase in selling prices. This has forced the domestic aquaculture industry, the major buyer of fishmeal to look at imports as prices offered by other countries are much cheaper, he said. However, exports of fishmeal and other fish products is also not a feasible option for the domestic industry on account of the lower prices prevailing in Peru and Chili which are at a peak production season.

Sait said that many plants are struggling to survive by negotiating the price of fish, the raw material for the industry. This has hit the fishermen in the form of reduced selling price. Fishmeal industry will buy these unsold fish from fishermen which will contribute to improving their income.

FAO has considered the fish meal industry as an engine to eradicate poverty of lakhs of fishermen. The fish catches secured by them above the requirements of human consumption either have to keep it for sun drying or throw it back to the sea, which will have serious environmental issues. The fish meal industry is helping them by purchasing the stock.

The non-purchase of huge stocks of wild caught by the fish meal industry would lead to disastrous consequences to fisher-folk who live on hand to mouth basis and heavily depend on the industry on their earnings.