India's Seafood Resource

 Exported to more than 90 countries.

 India has one of longest coastline of 8118 Km.
 Global Share of India is 4.2% at 2nd position,
while China has 69% share.
 Has one of largest area under Estuaries,
backwaters and Lagoons, which are highly
conductive for developing capture as well as
culture fishes.
 Employs 30 lakhs people, contributes 1% to
Indian GDP and 4.5 % to agriculture and allied
products.
 Indian fishing industry got a major boost after
the declaration of EEZ (Exclusive Economic
Zone) in 1977.
 Major exporting States are AP, Kerala, Tamil
Nadu, West Bengal.
 Potentially unexplored states are Gujarat,
Orissa, Maharashtra.
 Major products are shrimps, frozen fish,
cuttlefish, squid and dried items
 Products exported
Traditional items Value added items
–Shrimps – Cultured shrimp
–Oyster – Battered Shrimp
–Tuna Fish
–Cook Shrimp
–Squids
–Lobster –Fish Fille
–Frozen Fish
–Cuttlefish
–Shark
–Squid
 About 85 species of shrimps are known to
exist in Indian waters of which 55 species
are reported either as commercially
important or having considerable demand
in the local as well as international market.
 Export trend - Since the fall in the
export earnings during 2003-04, the dollar
earnings have increased steadily till 2008-
09
 Major items of export

 
Frozen shrimp continued to be the single
largest item of export in terms of value
accounting for about 44% in the total export
earnings. In terms of quantity, fish accounted
for the major share at 40% (shrimp 21%) as
could be observed from the table below.
                                      
 MAJOR EXPORT ITEMS
Q: Quantity in Tons, V: Value in Rs. Crores,$: USD Million
ITEM Share %   2008-09 2007-08 Growth(%)
FROZEN SHRIMP 21 Q 126042 136223 -7.47
  43.91 V: 3779.88 3941.62 -4.10
  43.97 $: 839.30 980.62 -14.41
    UV$: 6.66 7.20 -7.50
FROZEN FISH 40 Q: 238543 220200 8.33
  20.01 V: 1722.29 1303.41 32.14
  19.66 $: 375.23 326.29 15.00
    UV$: 1.57 1.48 6.16
FR CUTTLE FISH 8 Q: 50698 45955 10.32
  8.84 V: 760.59 744.13 2.21
  8.81 $: 168.17 185.66 -9.42
    UV$: 3.32 4.04 -17.89
FR SQUID 9 Q: 57125 34172 67.17
  7.35 V: 632.35 408.42 54.83
  7.49 $: 142.87 101.29 41.05
    UV$: 2.50 2.96 -15.63
DRIED ITEM 5 Q: 31688 22414 41.38
  4.89 V: 420.75 258.88 62.53
  4.85 $: 92.51 64.72 42.94
    UV$: 2.92 2.89 1.10
LIVE ITEMS 1 Q: 3434 2498 37.47
  1.15 V: 99.00 69.07 43.33
  1.14 $: 21.82 17.21 26.84
    UV$: 6.36 6.89 -7.73
CHILLED ITEMS 4 Q: 21453 6541 227.98
  2.53 V: 217.34 118.11 84.02
  2.54 $: 48.39 29.62 63.35
    UV$: 2.26 4.53 -50.19
OTHERS 12 Q: 73851 73698 0.21
  11.34 V: 975.75 777.29 25.53
  11.54 $: 220.33 193.68 13.76
    UV$: 2.98 2.63 13.53
TOTAL 100 Q: 602835 541701 11.29
  100 V: 8607.94 7620.92 12.95
  100 $: 1908.63 1899.09 0.50
    UV$: 3.17 3.51 -9.69
 Market Structure
 2008-09:
European Union (EU) - 32.6%
China -14.8%
Japan - 14.6%
USA -11.9%
South East Asia -10%
Middle East - 5.5%
Other Countries -10.6%
 Due to prevailing economic recession export to EU,USA and
Japan declined 6.08%, 10.18% and 8.80% respectively
 All other countries increased their import of marine
products from India during the year
 Department of Commerce
System on Foreign Trade Performance Analysis (FTPA)
Marine products of Export
Dated: 22/8/2010

Commodity Apr-Mar  2008 Apr-Mar  2009 %Growth %Share

MARINE 6,926.67 7,066.37 2.02 0.84

PRODUCTS

Apr-Mar  2010
Commodity Apr-Mar  2009 %Growth %Share
(P)
MARINE 7,066.37 9,891.10 39.97 1.17
PRODUCTS
The exports to the Euro market, USA and Japan
during 2009-10 are as below:
 
  Japan USA European
Union
Quantity in M T 62,690. 33,444 16,4800
1,012.5
1,289.58 3,013.33
 Value in Rs. Crore 2
 Value in  US Dollar
278.56 213.52 637.40
Million
Marine Products Export Development
Authority
The Marine Products Export Development
Authority was constituted in 1972 under the
Marine Products Export Development
Authority Act 1972(no.13 of 1972). Its
Headquarters are at Kochi and has a number
of Regional and Sub- Regional Offices.

13
• Its aims to covers fisheries of all kinds, increasing
exports, specifying standards, processing,
marketing, extension and training in various
aspects of the industry.

• MPEDA functions under the Ministry of Commerce,

Government of India and acts as a coordinating
agency with different Central and State
Government establishments engaged in fishery
production and allied activities.
 It is responsible for development of the marine
products industry with special reference to exports.

 The role envisaged for the MPEDA under the

statute is comprehensive covering -
Fisheries of all kinds,
Increasing exports,
Specifying standards,
Processing ,
Marketing,
Extension and training in various aspects of
the industry.

15
 Objectives
 Regulating marine products export
 Laying down standards & specifications
 Rendering financial assistance to
processors & exports
 Helping the industry in relation to market
intelligence, export promotion, trade
enquiries & the import of essential items

16
 Contd…
 Providing training in different aspects of
the marine products industry, with
reference to quality control, processing
and marketing
 Promotion of prawn farming for export
production

17
 Services offered by MPEDA

 Registration of infrastructure facilities for Seafood

Export trade
 Collection and dissemination of trade information
 Projection of Indian marine products in overseas
markets
 Implementation of development measures vital to
the industry
 Promotion of brackish water aquaculture for
production of prawn for export
 Financial assistance for installation of
insulated / Refrigerated Fish Hold,
Refrigerated Sea Water System (RSW) and
Ice Making Machine on board mechanized
fishing vessels to encourage Mechanized
Fishing Vessel owners to go for multi day
fishing and for better preservation of catch.
 Challenges

 Impose of Anti-dumping duty by US in2004.

 Japan and EU imposed strict quality control
standards on Indian Marine Products.
 Indian Exports are single product (Shrimp) and
single market (USA and Japan) oriented
Industry.
 Diesel accounts for 75% of Input cost,
escalating diesel prices i.e. from Rs 5 in 1991
to Rs. 40 present is major
 The Global imports of Shrimp are declining
and demand towards processed food is
increasing.
 Low scale Indian Exporters lack Risk
taking capacity to jump into technology
sophisticated processed food Industry.
 Changing Trends
 The India’s exports of Shrimps and frozen Squidare
declining year on year.
 One major reason of decline is export of cheaper
Vannamei Shrimps from neighboring countries.
 The trend is shifting towards Value Added Products
and Processed Shrimps.
 New Potential Species are
–Mud Crabs
–Tuna Fish
–Sea brass
–Mullets
–Pearl Spot fishes
 Q –Quantity(MT)
Export Trend in Marine Products V –Value (Rs. Crore)
$ -US Dollar in Mn
  Year   Export Variation    (%) U.V.
2002-03 Q 467297 42827 10.09  
  V 6881.31 924.26 15.52 147.26
  $ 1424.9 171.55 13.69 3.05
2003-04 Q 412017 -55280 -11.83  
  V 6091.95 -789.36 -11.47 147.86
  $ 1330.76 -94.14 -6.61 3.23
2004-05 Q 461329 49312 11.97  
  V 6646.69 554.74 9.11 144.08
  $ 1478.48 147.71 11.1 3.2
2005-06 Q 512164 50835 11.02  
  V 7245.3 598.61 9.05 141.46
  $ 1644.21 165.74 11.21 3.21
2006-07 Q 612641 100478 19.62  
  V 8363.53 1118.23 15.43 136.52
  $ 1852.93 208.72 12.69 3.02
2007-08 Q 541701 -70941 -11.58  
  V 7620.92 -742.61 -8.88  
  $ 1899.09 46.16 2.49 3.51
2008-09 Q 602835 61134.51 11.29  
  V   8,607.94 987.02 12.95  
  $   1,908.63 9.54 0.5 3.17
 The Indian Shrimp Industry
Organizes to fight the Threat of
Anti-Dumping Action

Case Study
 The case history
 On 31 December 2003, the Ad Hoc Shrimp Trade
Action Committee (ASTAC), an association of shrimp
farmers in eight southern states of the United States,
filed an anti-dumping petition against six countries —
Brazil, China, Ecuador, India, Thailand and Vietnam.

 The petition alleged that these countries had dumped

their shrimps in the US market.

 On 21 January 2004 the US Department of Commerce

(DOC) announced the initiation of anti-dumping
investigations against the six countries.
 The ratio of preliminary duty varies between
3.56% and 27.49% for three mandatory
respondents selected by the DOC.
 The weighted arranged rate for India is 14.2%.
 The average rate for
₋ China is 49.09%,
₋ Brazil 36.91%,
₋ Vietnam 16.01%,
₋ Ecuador 7.3%
₋ Thailand 6.39%.
 The Indian shrimp industry and its
response
 The anti-dumping investigations against Indian
shrimp imports might be initiated was hinted at
during bilateral talks when the then Commerce
and Industry Minister Arun Jaitley had met his
counterpart in Washington at that time.
 The reason given was that India’s shrimp exports
to the United States had been rising rapidly during
the previous three years, from $255.93 million
during 2000-1 to $299.05 million during 2002-3.
 The United States, traditionally a buyer of
small-sized shrimp from India, has now
started buying many other varieties,
including black tiger shrimp, resulting in
its occupying the top slot in India’s export
markets of marine products, replacing
Japan in 2002-3.
 After the statement of the Commerce
Minister on the possible threat to Indian
shrimp exports to the United States, the
two bodies, Seafoods Exporters
Association of India (SEAI) and Marine
Products Export Development Authority
(MPEDA) went into action.
 Indian Argument
 First, there are specific variations between
the shrimp caught off the south-west
coast of the United States and in Indian
waters
 India’s shrimp exports are predominantly
of black tiger and scampi varieties which
are not cultivated in the United States’,
according to the president of SEAI.
 Second, while fishing in the United States is a
capital-intensive activity calling for major
investment, in India shrimp capture is carried
out with a very low level of capital and requiring
hardly any investment.
 This makes the cost of production considerably
lower in India compared with that for shrimp
sea-caught off the US coast.
 US had quarreled before
 India’s shrimp export to the United States came
under difficulties before, when the United States
banned the import of captured shrimp from
certain countries, including India, in 1976.
 It was on the ground that trawling for shrimp by
mechanized means had been adversely affecting
certain varieties of sea turtles.
 The WTO ruled against the United States and
asked it to make the regime WTO-compatible.
 However, since that had not yet
happened, India’s exports to the United
States of aqua-culture shrimp and shrimp
caught by non-mechanized means were
being made on the basis of certification by
the MPEDA, as required under the law.
 Lessons learnt
 The shrimp industry in India had always
focused on one or two major markets for
growth. Previously it was Japan and
during the last few years, it has been the
United States. It has now learnt the
importance of diversification.
 A. J. Tharakan, the SEAI president, has said
that they are exploring alternative markets to
make up for the loss of the lucrative US
market. ‘But it will be a long drawn-out
process. It is not easy to establish your
presence.’
 This is why it is important to start early — a
lesson the industry appears to have learned
from this experience.