In order enable farmers to access a large market profitability, the government has taken a major policy initiative. The government has done away with the licensing requirement for plying of foreign flag vessels by foreign players on the coastal line of India for four kind of cargos - agriculture, horticulture, fisheries and animal husbandry. Moreover, the govt has allowed chartering of foreign vessel by Indian citizens, Indian incorporated entities and Indian registered societies for this. The move is also aimed at promoting processing of seafood at Indian hubs under Sagaramala initiative rather than processing of Indian seafood in Singapore before further exports to countries like Japan.
Shipping Minister Nitin Gadkari said that the main objective of the govt’s reform in the maritime sector is to see that farmers income increases and through lower logistic charges like transportation through sea would reduce cost. The minister further said that the initiative will help in govt’s intent of promoting a mind-set shift from facilitating and protecting farmers, towards one that expands the market ecosystem.
The relaxation in licensing requirement has been given under section 407 of the Merchant Shipping Act 1958 and accordingly vessels with at least 50% of total cargo onboard constituted by these commodities are not required to obtain a license from the Director General of Shipping for coastal trade.
Recently, the government had also done away with licensing requirement for ships chartered by Indian citizens or companies for transportation of EXIM containers for transshipment purposes and to promote entrepreneurship. The move was aimed at arresting diversion of Indian container cargo to transshipment hubs at foreign ports that have been swelled to 33%, besides creating employment.