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ASIA ECONOMY WATCH JUNE 2008
j India·s seafood exports, which stagnated few years back,
are likely to touch over $3.5 billion from current level of
$2.2 billion by 2009, provided a key thrust area include
value-addition, expansion of aquaculture, technological
upgradation and tapping unexplored resources.
j In a paper brought out by Associated chambers of commerce &
industry of India (ASSOCHAM) on ´Market of Seafoods in Indiaµ,
O 
     O


O 
O  OO
O O O O  

 
 OO
O !, have potential to
accelerate faster in view of their growing demand in
trading blocks like the w w
  
  
SOURCES
j UN Yearbook of International Trade
Statics.
j DGCI&S India·s exports of principle
commodities & countries.
j FAO Commodity Statistics.
j UN Commodity Statistics
j Facts for You: November 2006
j Facts for You: June 2005
j Survey of Indian Industry 2007
j www.mpeda.com
OBJECTIVES COVERED
j Overview Marine Exports
j What to Export? Know your Product

j Where to Export? The hungry World.

j How to Export?

j Problems you may face.

j Solutions and Golden future ahead.


OVERVIEW MARINE EXPORTS
THE MARINE INDUSTRY ² SOME FACTS
j Exported to more than v   .

j India has one of longest Coastline of ! !.

j Global Share of India is ü  , while China has


69% share.

j Has one of largest area under Estuaries, backwaters and Lagoons,


which are highly conductive for developing capture as well as culture
fishes.
FACTS CONT

j Employees 4   , contributes  


and 4.5 % to Agriculture and Allied products.

j Indian Fishing Industry got a major boost after the


declaration of !"#$ ! % v

j Major Exporting States are AP, Kerala, Tamil Nadu, West


Bengal.

j Potentially Unexplored states are Gujarat, Orissa,


Maharashtra.

j Major products are Shrimps, frozen fish, cuttlefish, squid


and dried items.
KNOW YOUR MARKET ² TRENDS IN
EXPORTS
WWW.MPEDA.COM

Marine product exports has steadily grown over the years; from a mere
 4 v crore in 1961-62 to  !4 4 4 crore in 2006-07 , 1.4% of the
total exports from India.
j Until 1960
ð Products were Ú O  O Ú O "O
ð Market was neighboring countries.
j From 1960 ² 1977
ð Products were "
# O
ð Major market beside neighboring countries were
USA, Japan. USA emerged as single largest buyer.
j 1977 ² 2001
ð Japan Emerged as single largest buyer followed by
Western European Countries.
KNOW YOUR MARKET CONT.
j 2001 ² 2004
ð USA again topped the charts as Single largest
importer of Indian Marine Products.
j 2005 ² till date
ð European union became largest importer importing 33% of
Products
ð Japan 16.18%
ð USA 16.12 %
ð China 13.83%
ð South East Asia 7%
ð Middle East Asia is New emerging Market.
ð The product preference is shifting from Frozen Shrimps to
Processed Products and other marine products.
MARINE PRODUCTS ² THE UNTAPPED
POTENTIAL
THE HINDU ² SURVEY OF INDIAN INDUSTRY 2007

j Meager utilization of natural gift.


j Total production
ð Potential ² 15 Million Tonnes
ð Production ² 2.5 Million Tonnes
j Fresh waters and Ponds
ð Total Available ² 2.4 Million Hectares.
ð Utilized ² 1.5 Million Hectares.
j Production Per Hectare (Pond Culture)
ð Potential ² 5 Tonnes per Hec.
ð Production ² 2 Tonnes per Hec.
j Production Per Hectare (Reservoirs and Tanks)
ð Potential ² 600 Kg per Hec.
ð Production ² 100 Kg per Hec.
ð What to Export??
WHAT TO EXPORT?

j Traditional Items:
ð Shrimps - Oyster - Tuna Fish
ð Squids - Lobster - Frozen Fish
ð Cuttlefish - Shark - Squids

j Value Added Items.


ð Cultured Shrimp
ð Battered Shrimp
ð Cook Shrimp
ð Fish Fillet.
WHAT TO EXPORT
@   #  &  "%
2002-03 Q 467297 42827 10.09

V 6881.3 924.26 15.52

$ 1424.9 171.55 13.69

2003-04 Q 412017 -55280 ' !4

V 6092 -789.36 ' ü

$ 1330.8 -94.14 '

2004-05 Q 461329 49312 11.97

V 6646.7 554.74 9.11

$ 1478.5 147.71 11.1

2005-06 Q 512164 50835 11.02

V 7245.3 598.61 9.05

$ 1644.2 165.74 11.21

2006-07 Q 612641 100478 19.62

V 8363.5 1118.23 15.43

$ 1852.9 208.72 12.69


ITEM WISE EXPORTS
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WHAT TO EXPORT - TRADITION SO FAR.
j Shrimp ²
ð 20% of world·s imports.
ð Mainstay in India·s Exports 65.88% (2004), 53%
(2008)

j 200 world class Seafood processing factories.

j Kerala has 40 percent of the total processing


Industries, followed by AP, Tamil Nadu and
Gujarat.
CHANGING TREND
j The India·s exports of Shrimps and frozen Squid are
declining year on year.
j One major reason of decline is Export of Cheaper
O   from neighboring countries
j The trend is shifting towards O$  %
 
 %
  O
j New Potential Species are
ð Mud Crabs,
ð Tuna Fish,
ð Sea brass,
ð Mullets, and Pearl Spot fishes.
INDIA - A SEAFOOD PROCESSING HUB
j The government has allowed import of raw
materials required for processing plants.
j More Thrust is given on ´Ready to Eatµ and
´Ready to Cookµ kind of processed items.
j First seafood processing zone was developed in
Kolkata, with investment of Rs 480 million.
j The processing zone started with 10 large scale
private sector processing units.
NEW PRODUCTS - TUNA FISH
NEW FISH TO FRY

j Tuna fish is third most traded Fish


internationally.
j Tuna fish exports are targeted to reach 400
million dollar by 2010.
j Andaman and Nicobar Island holds 25-30 per
cent of tuna potential.
NEW PRODUCTS ² MUD CRABS
j Technology for hatchery seed production of
m &  and ' fish has recently
been developed by CIBA (Central Institute of
Brackish Water Aquaculture) and MPEDA .
j Potential sites spotted for this are Tamil
Nadu and Andhra Pradesh.
j Mud Crab is identified as best substitute of
Shrimps.
j By using the technology 1 lakh tonnes of Mud
Crabs can be produced giving revenue of Rs.
2000 Crores.
NEW PRODUCTS ² SEA BASS FISH
j High valued Sea Bass Fishes can tolerate
wide variation in environmental
conditions.
j It can be produced in vast coastal region
example Andhra Pradesh, Tamil Nadu,
Kerala, Maharashtra.
j The technology has been perfected in
Southeast Asia, and is in nascent stage in
India.
j One kilogram of Sea Bass fish can give a
revenue of Rs 100.
ORNAMENTAL FISH ² NEW FISH IN TOWN
WWW.E-PAO.NET

j Most popular among Hobbyist.


j Used in Aquariums around the World.

j Major Exporters Singapore, Hong Kong, Malaysia,


Thailand, Philippines, Sri Lanka, Taiwan, Indonesia
and India.
ORNAMENTAL FISH ² CONT.
j Major Importers USA, Japan and Europe. China
and South Africa are Emerging Markets.
j Global Trade of $5 Billion annually, growing by
.
j India Exports worth Rs 1.58 Crores, growing at
 (.
j The tropical ornamental fishes from North
eastern and Southern provinces of India are in
great demand in the hobbyists market .
j Loaches, Eels, Barbs, Catfish, Goby
O  w 
 wO 

j India mainly produces Black Tiger Shrimp (1.5


lac tonnes).
j It has faced stiff competition from Chinese
OO Obecause
ð It has low production cost, and therefore cheap.
ð Resistant to virus diseases.
O  w  

j Per Hectare production is 20 tonnes, against 2-3


tonnes of Black tiger Shrimp.
j Margins from 3 tonnes of Vannamie Shrimp is
more than margins from 3 tonnes of Indian
Shrimps.
j China produces 6.5 lac tonnes , Thailand 4.5 lac
tonnes, Indonesia 4 lac tonnes and Vietnam 3.5
lac tonnes and there annual production is rising.
ð Where to Export??
WHERE TO EXPORT?

 )m *   ))
j EU (26%)
m * 
ð Spain
ð UK Ë Vietnam
ð Italy
Ë Belgium
j USA (23%)
j Japan (16%)
Ë Canada
Ë Germany
Ë Hong Kong
Ë China(14%)
COUNTRY WISE EXPORTS
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How To Export?
HOW TO EXPORT?
j Chennai Port handles 24% in terms of Value, but
the carriage is declining over the years, the
emerging high capacity ports are
ð Haldia
ð Tuticorin
ð Kochi
MPEDA ² MARINE PRODUCTS EXPORTS DEVELOPMENT
AUTHORITY
j Head Quatered ² Kochi (Kerela)
j 6 Regional/ 4 Sub- Regional Offices

j 2 International Offices ² New York and Tokyo.


VISION - MPEDA
j Our vision is to achieve the export of 5 Billion US
$ worth marine products by 2014-15 that too with
the 75% contribution of value added items.
SCHEMES - MPEDA
j Logo Scheme ² to gain wide market acceptance.
j Active participation in 15 International Trade
Fairs.
j A delegation consisting of Indian Exporters were
send to Japan to address the quality issue. The
exporters made series of presentations in major
cities of Japan.
CHALLENGES
CHALLENGES
j Impose of Anti-dumping duty by US in 2004.
j Japan and EU imposed strict quality control
standards on Indian Marine Products.
j Indian Exports are Single Product (Shrimp)
and Single Market (USA and Japan) oriented
Industry.
j Diesel accounts for 75% of Input cost,
escalating diesel prices i.e. from Rs 5 in 1991
to Rs. 40 present is major challenge to
overcome.
CHALLENGES CONT.
j 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.

j As a result of Above, the financial institutions


have lost confidence in Small and Medium
Players dominated Indian Fisheries Industry.
EXPORT STRATEGY
j It is necessary to treat marine products as technology
Intensive sector.

j ±O O O

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j Indian Logo ² MPEDA logo scheme


STRATEGY CONTINUED
j Products j Markets
ð Mud Crabs ð Vietnam
ð Tuna Fish ð Belgium
ð Sea Brass ð Canada
ð Ornamental Fish ð Germany
ð Hong Kong
ð China
§  
Î   
j

Thank You

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