The Union Budget 2026–27 has sharpened its focus on strengthening India’s agri and food value chains, with targeted measures aimed at boosting seafood exports, promoting high-value crops, and supporting allied processing industries.
A key announcement for the fisheries sector is the increase in the duty-free import limit for inputs used in seafood processing from 1% to 3% of the FOB export value. The move is expected to provide much-needed flexibility to seafood exporters by easing access to critical raw materials and specialized inputs, lowering production costs, and enhancing global competitiveness—especially at a time when exporters are facing pressure from high international tariffs.
Industry stakeholders believe the step will help expand India’s share of value-added seafood products, which currently account for just about 11% of total seafood exports, significantly lower than competing markets such as Vietnam and Thailand. With seafood exports exceeding $7 billion annually, the relaxation is seen as timely support for a sector that contributes substantially to agricultural gross value added.
Reacting to the announcement, Deepanshu Manchanda, Managing Director at Zappfresh, said the enhanced duty-free limit is a “practical and forward-looking reform” for India’s seafood and protein markets. He noted that the measure would help stabilize supply chains, reduce cost volatility, and ensure consistent availability of quality products, particularly when the domestic seafood supply is seasonal or uneven. According to him, the policy complements India’s strong domestic fishing base by filling supply gaps rather than replacing local sourcing.
Beyond fisheries, the Budget has placed strong emphasis on high-value agricultural produce such as cocoa, coconut, cashew, almonds and walnuts. Dedicated programmes for coconut and cocoa are expected to help reduce import dependence, revive stagnating production, and improve farmer incomes, particularly in coastal and plantation-heavy states like Kerala and Tamil Nadu. Experts point out that ageing plantations and declining yields have been major challenges for coconut oil production in recent years.
The Budget also announced a focused programme for cashew production and processing, along with initiatives to promote high-density cultivation of almonds and walnuts in the Himalayan region. Industry bodies say these measures will encourage scientific cultivation, improve yield and quality, and gradually reduce India’s heavy reliance on imports for nuts.
Overall, with an agriculture sector allocation of ₹1.62 lakh crore—up over 7% from the previous year—the Budget signals a clear intent to modernize agriculture, strengthen allied sectors such as fisheries and food processing, and shift India’s agri-export basket towards higher value-added products.