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AMITY INTERNATIONAL BUSINESS SCHOOL

PROJECT ON “MARINE DEVLOPMENT AUTHORITY”.

PRODUCTS

EXPORT

SUBMITTED TO: Ms . Alka Maurya

SUBMITTED BY: Robin Sirohi Kumar Rajanala Nishant Dogra

CONTENTS: • Overview • Production Centers • Domestic Industry • Trend in Export (Export from India for last three years) • Major Export Destinations • Major Competitors in the global market • Provisions in India’s Foreign Trade Policy • Quality Standards • Problems / Challenges faced by the exporter • Relevant News articles

OVERVIEW: The Marine Products Export Development Authority (MPEDA) was constituted in 1972 under the Marine Products Export Development Authority Act 1972 (No.13 of 1972). 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. Structure, Activities & Network 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. Standing Committees of MPEDA
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Executive Committee Technical Committee Export Promotion Committee

The plan schemes of the Authority are implemented under seven major heads:
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Market Promotion Capture Fisheris Culture Fisheries Processing infrastructure & value addition Quality control Research and development Viability gap funding

The marine products exports are benefited by Special Focus initiatives. SPECIAL FOCUS INITIATIVES The major benefits are as follows:1. Market Diversification

Indian commercial . Duty free import of specified specialized inputs / chemicals and flavouring oils is allowed to the extent of 1% of FOB value of preceding financial year’s export. Financial assistance is available for Export promotion councils (EPCs). ships. b. 2. in this Policy focus is on diversification of Indian exports to other markets. focus product basis. following initiatives have been taken under this Policy.To insulate Indian exports from the decline in demand from developed countries.Marine Sector a. PROMOTIONAL MEASURES Market Access Initiative (MAI) Under MAI scheme. There has been a significant increase in the outlay under ‘Market Linked Focus Product Scheme’ by inclusion of more markets and products. specially those located in Latin America. financial assistance is provided for export promotion activities on focus country. parts of Asia and Oceania. a. Imports for technological up gradation under EPCG in fisheries sector (except fishing trawlers. e. Africa. boats and other similar items) exempted from maintaining average export obligation. d. b. This ensures support for exports to all countries in Africa and Latin America. Marine products are considered for VKGUY scheme. The incentives provided under Focus Market Scheme have been increased from 2. c. Industry and Trade Associations (ITAs). To allow import of monofilament long line system for tuna fishing at a concessional rate of duty and Bait Fish for tuna fishing at Nil duty. A self removal procedure for clearance of seafood waste is applicable subject to prescribed wastage norms. Agencies of state government. 26 new countries have been included within the ambit of Focus Market Scheme. To achieve diversification of Indian exports. c.5% to 3%.

2009 onwards. Financial assistance is also provided for contesting litigations(s) in the foreign country concerning restrictions/anti dumping duties etc. threshold limit would be Rs. Entitlement Exporters of all products to notified countries shall be entitled for Duty Credit Scrip equivalent to 3% of FOB value of exports (in free foreign exchange) for exports made from 27. including registration charges for product registration for pharmaceuticals. It is necessary to grant recognition to these industrial clusters with a view to maximizing their potential and enabling them to move higher in the value chain and tap new markets.750 Crore or more will be notified as TEE based on potential for growth in exports. DUTY EXEMPTION & REMISSION SCHEMES . bio-technology and agro-chemicals products on recommendation of EPCs.missions (ICMs) abroad and other national level institutions/eligible entities as may be notified. on particular product(s) of Indian origin. Towns of Export Excellence (TEE) A number of towns have emerged as dynamic industrial clusters contributing handsomely to India’s exports. Meeting expenses for statutory compliances in buyer country for Trade related Matters DOC provides for reimbursement of charges / expenses for fulfilling statutory requirements in the buyer country. Agriculture and Fisheries sector. FOCUS MARKET SCHEME (FMS) Objective Objective is to offset high freight cost and other externalities to select international markets with a view to enhance India’s export competitiveness in these countries.08.150 Crores. as provided under the market Access Initiative (MAI) Scheme of DOC. However for TEE in Handloom. handicraft. . Selected towns producing goods of Rs.

which are physically incorporated in export product (making normal allowance for wastage). In addition. catalyst which are required for production of export product. oil. DUTY ENTITLEMENT PASSBOOK (DEPB) SCHEME Duty Entitlement Passbook (DEPB) Scheme Objective of DEPB is to neutralize incidence of customs duty on import content of export product. fuel.Duty exemption and remission Schemes Duty exemption schemes enable duty free import of inputs requires for export production. fuel. Duty Exemption Schemes consist of (a) Advance Authorization scheme and (b) Duty Free Import Authorization (DFIA) scheme. Neutralization shall be provided by way of grant of duty credit against export product. ADVANCE AUTHORISATION SCHEME Advance Authorisation An advance Authorization issued to allow duty free import of inputs. may also be allowed. Component of customs duty on fuel (appearing as consumable in the SION) shall also b e factored in the DEPB rate. energy sources. energy. catalysts which are consumed / utilized to obtain export product. EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME Zero duty EPCG Scheme . DUTY FREE IMPORT AUTHORISATION (DFIA) SCHEME Scheme DFIA is issued to allow duty free import of inputs . oil. A Duty Remission scheme enables post export replenishment / remission of duty on inputs used in export product. Duty remission Schemes consist of (a) Duty Entitlement Passbook (DEPB) Scheme and (b) Duty Drawback (DBK) Scheme. Component of Special Additional Duty shall also be allowed under DEPB (as brand rate) in case of non-availment of CENVAT credit.

ELECTRONICS HARDWARE TECHNOLOGY PARKS (EHTPs).caa.in Costal Aquaculture Authority.Zero duty EPCG scheme allows import of capital goods for pre production. production and post production of zero custom duty.gov. subject to an export obligation. SOFTWARE TECHNOLOGY PARKS (STPs) AND BIO-TECHNOLOGY PARKS (BTPs) Production Centres: Source: www. EXPORT ORIENTED UNITS (EOUs). .

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India is the third largest fish producing country in the world and ranks second in inland fish production.2 mnsq km of exclusive economic zone supplement India’s vast potential for fishes. 1.600 sq km of continental shelf area and 2. texturized products and dry fish etc. 3 mn hectares of reservoirs. cakes. minced fish products like fish sausage. individual quick frozen products (IQF). State of the industry . pastes.000 km coastline from both inland and marine resources. 50.4 mn hectares of brackish water. The antidumping procedure initiated by the US Government has affected India’s shrimp exports to the US. surimi.com Ministry of Food Processing Industries. Processed fish products for export include conventional block frozen products. cutlets.Domestic Market for Marine Products: Source: www. The 8. Exports of marine products have been erratic and on a declining trend which can be owed to the adverse market conditions prevailing in the EU and US markets.mofpi.

and Middle East showed an increase whereas the export to Japan recorded a declining trend in the past few years. The exports to the US. dried shark fins. EU. 11 surimi plants. dried cuttle fish bones.8% in value terms in 2005-06& continues to grow. Major marine products exported from India includes frozen shrimps. India exports fourteen major fishery product groups to over 40 countries. etc. fresh fishes. dried fish.02% of the total exports and frozen fish is the major item exported in terms of quantity with a share of 35. squid tubes. As compared to 2004-05. 371 freezing plants. 12. aquarium fishes. 2005-06). dried shrimps/prawns. dried fish maws.There are about 1. 7 canning plants. 481 shrimp peeling plants. is fully utilized only during the peak fishing season. canned shrimps/prawns. Commercial production is mostly directed towards export. clam. in the year 2004-05. 471 cold storage units. cuttle fish. Maritime States of India Kerala Tamiladu Pondichery Maharashtra Gujarat West Bengal . The European Union. EU's share increased by 10% in quantity.283 tn/day. collectively became the largest importer of Indian marine products. canned fish. Around 95% of the seafood processing units in the country is concentrated in the 20 major clusters in 12 maritime states where fish catches is highest. Individually Quick Frozen (IQF) shrimps.273 registered exporters in the country and the Indian seafood fish processing industry is quite well developed. 16 fishmeal plants. lobsters. mussel. Shrimp product lines accounts for 65-70% of the export earnings Maritime States of India. Frozen shrimp is the largest item exported in terms of value with a share of 59. The post-harvest infrastructure includes around 215 ice plants. The share of USA also increased by 11. All export oriented processing units are HACCP certified.6% in value terms in 2005-06 and still growing.8% in quantity and 3. and one agar-agar production unit. crab.60% in total exports of marine products (MPEDA. China. The total installed freezing capacity of 7.

With the high unit value. fin fish.4%. etc. Govt.32 billion mark India's share is 2. The world market for seafood has doubled within the last decade reaching US $49. of India.com . under the Ministry of Commerce & Industry.Karnataka Andhra Pradesh Andaman & Nicobar Islands Future Prospects Orissa Goa Lakshadweep Marine products have created a sensation in the world market because of their high health attributes. cuttlefish.mpeda. seafood has been acclaimed as one of the fastest moving commodity in the world market. MPEDA is the nodal agency for promotion of export of marine products from India.5 BILLION MARK IN 2011-12 The Marine Products Export Development Authority is a statutory body set up by the Government of India under the MPEDA Act 1972. Trend in Export : MARINE PRODUCTS EXPORTS CROSSED 3. Source:www. and penetrating into markets of Western Europe and South East Asia. The MPEDA has presence in all the maritime states and is implementing its developmental schemes for export promotion/aquaculture production through the field offices. dependence on shrimp as a product and is changing due to the increased attention given on other fishery resource like squid.

45 million.45 813091 12901. the export earnings have crossed USD 3. Squid and Cuttlefish helped us to gain such a higher export turnover. The increased production of Vannamei shrimp.23 crores and USD 3508. seafood exports recorded a growth of 6.81% growth in US$ earnings respectively.65 22. sluggish growth in US economy and the political instability in the Arab world. increased productivity of Black tiger shrimp and better price realization of major items like Shrimp. Compared to the previous year.92 6. 28. MARINE PRODUCTS EXPORT GROWTH IN US$ TERMS: The figures must be viewed in the light of the scenario of continuing recession in the international markets. Exports during 2011-12 compared to 2010-11 Export details Quantity Tonnes Value Rs.02% in quantity.23 3508.65% in rupee and 22. 16597.81 . This is also first time export has crossed all previous records in quantity.47 2856. continuing antidumping duty in US.02 28. debt crisis in EU economies.During the financial year 2011-12.5 billion.crore Value US $ Million 2011-12 2010-11 Growth % 862021 16597. Exports aggregated to 862021 tonnes valued at Rs. rupee value and US $ terms. for the first time in the history of Marine product exports.

. However.08% and 44.05%. 41.65% in terms of quantity.97% and 37.46% in US$ realization. Export of Fr.56% respectively. Fish. value and US$ terms by 32.58% in USD terms. 42.27% in quantity and 19. there is a decrease of 11.86%. Live items also showed a growth of 8. there is a decline in quantity (7.63% of the total US $ earnings. Squid showed an increase of 21. Fr. Unit value also increased by 25.99% in quantity.48% in US$ earnings. Cuttlefish recorded a growth of 21.76% in terms of rupee value and 3. Dried items showed a drastic decline in quantity. Shrimp exports during the period increased by 24.18 % in terms of US$ realization compared to the previous year. accounted for a share of about 40. Unit value also increased by 32. however.mpeda.com Major items of Export: Frozen Shrimp continued to be the major export value item accounting for 49.95%.06%.Source:www. has retained its position as the principal export item in quantity terms and the second largest export item in value terms.53% in rupee value and 17.59%). The details are given in the following table. rupee value and US$ value respectively.92% in rupee value and 15.

Major Export Destinations: Source: www.fao.org United Nations Food and Agriculture Organization (FAO) Declining Markets: EU USA Japan Emerging Markets: Vietnam Belgium Canada Germany Hong Kong .

The marine products exports have strengthened India’s presence in South East Asia.36% in US$ terms. Shrimp.96% followed by USA 18. Exports of chilled items showed a tremendous increase in Japanese market by 120. Shrimp to South East Asia has registered a growth of about 222. We have exported about 40787 MT of Vannamei shrimp during this period.17%. Exports of Vannamei shrimp showed a tremendous increase in US market by 212 % in quantity and 209% in US $ realization.51%.25%. Shrimp to USA has also showed a growth of about 47. China 7. Exports to US had registered a positive growth of 36.34% in US $ realization. Middle East 5. There is a significant increase in exports to South East Asian Countries compared to the previous year.89% in quantity and 40.35% in US $ terms. Shrimp and cephalopods. Fish and Chilled items contributed to the growth. . European Union (EU) got into the second place with a share of 22.17% in US$ terms.98% in US$ realization but declined in quantity by 13. Japan 13.39% in US$ realization and is mainly attributed by the export of Fr. Export of Fr. Export of Fr.55% in US$ terms. Export to Japan also registered a positive growth of 21.12% in quantity and 220.09 % in US $ realization. Exports to China showed a drastic decline of 46. Export of Vannamei shrimp had also picked up. Exports to South East Asia registered a growth of 87.45% in quantity and 45.33% in quantity and 22. Fr.68% in volume and 47. Increase in export of Fr.01%.China South East Asia became the largest buyer of Indian marine products with a share of 39.51 % in US$ realization and 47.33% and Other Countries by 7. .95%. Export to Middle East countries showed an increase of 25. The details are given in the following Pie chart.43% in volume and 356.01% in terms of volume.90 % in volume and 25.

fao.Major Competitors: Source: www.org United Nations Food and Agriculture Organization (FAO) Top 10 Aquaculture Producers: .

($14. especially those located in Latin America. To achieve diversification of Indian exports. In the same year. . other major exporters are: China The USA Thailand Norway Viet Nam Chile Source: www.25 billion). ($ 19. a.40 billion). In 2011 its exports reached USD 10.fao. Market Diversification To insulate Indian exports from the decline in demand from developed countries. parts of Asia and Oceania.03 billion) ($ 19. Africa. 26 new countries have been included within the ambit of Focus Market Scheme. ($14.21 billion). in this Policy focus is on diversification of Indian exports to other markets.Top exporters: China has been the world’s largest exporter of fish and fishery products.90 billion).49 billion).org ($ 21. PROVISIONS IN INDIA’S FOREIGN TRADE POLICY: SPECIAL FOCUS INITIATIVES The major benefits are as follows:1. following initiatives have been taken under this Policy. ($ 20.3 billion.

5% to 3%. Marine Sector a.. Imports for technological upgradation under EPCG in fisheries sector (except fishing trawlers. Capital goods imported under EPCG will be permitted to be installed anywhere in AEZ. Duty free import of specified specialized inputs / chemicals and flavouring oils is allowed to the extent of 1% of FOB value of preceding financial year’s export. c. The incentives provided under Focus Market Scheme have been increased from 2. This ensures support for exports to all countries in Africa and Latin America. d. . boats and other similar items) exempted from maintaining average export obligation. A self removal procedure for clearance of seafood waste is applicable subject to prescribed wastage norms. There has been a significant increase in the outlay under ‘Market Linked Focus Product Scheme’ by inclusion of more markets and products.b. ships. To allow import of monofilament longline system for tuna fishing at a concessional rate of duty and Bait Fish for tuna fishing at Nil duty. Agriculture and Village Industry a. 2. Vishesh Krishi and Gandhi Udyog Yojana b. b. 3. c.

v1 or HBPv2. GENERAL PROVISIONS REGARDING IMPORTS AND EXPORTS Exports and Imports free unless regulated Exports and Imports shall be free. be liable to action in accordance with provisions of FT (D&R) Act. Rules and Orders made there under and FTP. Restricted Goods Any goods. scope or issue of an authorization there under) said question or doubt shall be referred to DGFT whose decision thereon shall be final and binding. or classification of any item in ITC (HS) or HBP. without prejudice to any liability or penalty under any law in force. Realization of Export Proceeds If an exporter fails to realize export proceeds within time specified by RBI. Marine products are considered for VKGUY scheme.e. or Schedule of DEPB rates (including content. as specified in ITC (HS) notified by DGFT. Export Promotion Councils (EPC) . Interpretation of Policy If any question or doubt arises in respect of interpretation of any provision contained in FTP. The item wise export and import policy shall be. Free Exports All goods may be exported without any restriction except to extent such exports are regulated by ITC (HS) or any other provision of FTP or any other law for time being in force. except where regulated by FTP or any other law in force. as amended from time to time. export or import of which is restricted under ITC (HS) may be exported or imported only in accordance with an Authorization or in terms of a public notice issued in this regard. he shall.

PROMOTIONAL MEASURES Market Access Initiative (MAI) Under MAI scheme. Registration –cum. [except items listed as restricted items in ITC (HS)] or (ii) any other benefit or concession under FTP shall be required to furnish RCMC granted by competent authority in accordance with procedure specified in HBP-v1 unless specifically exempted under FTP. applying for. Indian commercial missions (ICMs) abroad and other national level institutions/eligible entities as may be notified. (i) an Authorization to import / export. Financial assistance is also provided for contesting litigations(s) in the foreign country concerning restrictions/anti dumping duties etc. Towns of Export Excellence (TEE) . Certificate of registration as Exporter of Spices (CRES) issued by Spices Board shall be treated as Registration –Cum-Membership Certificate (RCMC) for the purposes under this Policy. Agencies of state government.Basic objective of export promotion councils (EPCs) is to promote and develop Indian exports. financial assistance is provided for export promotion activities on focus country. projects and services as given in HBP-v1.Membership Certificate (RCMC) Any person. Financial assistance is available for Export promotion councils (EPCs). including registration charges for product registration for pharmaceuticals. Meeting expenses for statutory compliances in buyer country for Trade related Matters DOC provides for reimbursement of charges / expenses for fulfilling statutory requirements in the buyer country. Industry and Trade Associations (ITAs). focus product basis. as provided under the market Access Initiative (MAI) Scheme of DOC. bio-technology and agro-chemicals products on recommendation of EPCs. Each council is responsible for promotion of a particular group of products. on particular product(s) of Indian origin.

. handicraft. product improvement etc.A number of towns have emerged as dynamic industrial clusters contributing handsomely to India’s exports. Test Houses Central Government will assist in modernization and up-gradation of test houses and laboratories to bring them at par with international standards. Brand Promotion and Quality DOC provides funds for capacity building for up-gradation of quality to national level Institutions and EPCs to organize training programmes for the skill improvement of the exporters for quality up-gradation.750 Crore or more will be notified as TEE based on potential for growth in exports. threshold limit would be Rs. Agriculture and Fisheries sector. as provided under the Market Access Initiative (MAI) Scheme of DOC. Selected towns producing goods of Rs. reduction in rejection. It is necessary to grant recognition to these industrial clusters with a view to maximizing their potential and enabling them to move higher in the value chain and tap new markets. However for TEE in Handloom.150 Crores. FOCUS MARKET SCHEME (FMS) Objective Objective is to offset high freight cost and other externalities to select international markets with a view to enhance India’s export competitiveness in these countries.

Duty remission Schemes consist of (a) Duty Entitlement Passbook (DEPB) Scheme and (b) Duty Drawback (DBK) Scheme. oil.2009 onwards. DUTY EXEMPTION & REMISSION SCHEMES Duty exemption and remission Schemes Duty exemption schemes enable duty free import of inputs requires for export production. which are physically incorporated in export product (making normal allowance for wastage). DUTY FREE IMPORT AUTHORISATION (DFIA) SCHEME . catalysts which are consumed / utilized to obtain export product. may also be allowed. Duty Exemption Schemes consist of (a) Advance Authorization scheme and (b) Duty Free Import Authorization (DFIA) scheme. fuel. energy. A Duty Remission scheme enables post export replenishment / remission of duty on inputs used in export product.08. ADVANCE AUTHORISATION SCHEME Advance Authorisation An advance Authorization issued to allow duty free import of inputs. In addition.Entitlement Exporters of all products to notified countries (as in Appendix 37C of HBPv1) shall be entitled for Duty Credit Scrip equivalent to 3% of FOB value of exports (in free foreign exchange) for exports made from 27.

Component of customs duty on fuel (appearing as consumable in the SION) shall also b e factored in the DEPB rate. Component of Special Additional Duty shall also be allowed under DEPB (as brand rate) in case of non-availment of CENVAT credit. catalyst which are required for production of export product. SOFTWARE TECHNOLOGY PARKS (STPs) AND BIO-TECHNOLOGY PARKS (BTPs) Eligibility . EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME Zero duty EPCG Scheme Zero duty EPCG scheme allows import of capital goods for pre production. DUTY ENTITLEMENT PASSBOOK (DEPB) SCHEME Duty Entitlement Passbook (DEPB) Scheme Objective of DEPB is to neutralize incidence of customs duty on import content of export product. Neutralization shall be provided by way of grant of duty credit against export product. ELECTRONICS HARDWARE TECHNOLOGY PARKS (EHTPs).Scheme DFIA is issued to allow duty free import of inputs . subject to an export obligation. energy sources. oil. EXPORT ORIENTED UNITS (EOUs). fuel. production and post production of zero custom duty.

Duty free import of specifies specialized inputs / chemicals and flavoring oils as per a defined list shall be allowed to the extent of 1% of FOB value of preceding financial years export. A self removal procedure for clearance of seafood subject to wastage norms. c. PACKAGE FOR MARINE SECTOR a. HS Code Tariff Items Unit Item Description Export policy Nature of Restriction .Units undertaking to export their entire production of goods and services (except permissible sales in DTA). it is proposed to allow import of monofilament long line system for tuna fishing at a concessional rate of duty. MAJOR MARINE ITEMS WHICH ARE EITHER PROHIBITED / RESTRICTED ARE AS FOLLOWS:Sl. b. may be set up under export oriented Unit (EOU) Scheme. To encourage the existing mechanized vessels and deep sea trawlers to adopt modern technology for scientific exploitation of our marine resources in an eco-friendly manner and boost marine sector exports. No. Use of these special ingredients for seafood processing will enable us to achieve a higher value addition and enter new export markets.

1212 10 1212 90 20 Kg. Seaweeds of all types.mpeda. 0508 50 00 Kg. 0306 10 Source:www. 6. Restricted Exports including G-edulis but excluding brown and permitted under license 20 seaweeds agarophytes of Tamil Nadu Coast origin in processed form. 1972. 300gms.com 12 Kg. permitted to be exported 2. including Prohibited Not polished sea shells and handicrafts made out of those species included in the Schedules of the Wild Life (Protection) Act. 3. Sea Shells. 0302 30 0303 50 69 Kg. 79 79 Kg. Fresh or Chilled or Restricted Exports Frozen silver pomfrets of weight less than permitted under license Prohibited Not permitted to be exported irrespective of its size. 0303 99 5. Beche-de-mer 4.1. sized) Prohibited Sand Lobster (under Prohibited Not permitted to be exported QUALITY CONTROL: .

possessing and or advertising for sale of food that does not comply with food safety requirements are now offences as per food safety requirements. MPEDA has identified the following thrust areas for development / improvement and implement programmes as under: i) Product development for export: 1. High Performance Liquid Chromatograph coupled with Mass Spectrometry (HPLC with MS MS) etc. freshness. offering for sale. particularly under tropical conditions. nutritional value and microbiological safety of food. which facilitates not only the detection of pathogens / residue levels much more quickly but also to a level of minute sensitivity. Over the past few years. In the sea food industry. Advances in food technology has helped to curtail opportunities for microbiological hazards and significant developments in laboratory diagnosis such as the novel techniques developed viz: Polymerase Chain Reaction (PCR). where food safety offences are now regarded at Government level. premises and equipments that contravene the legislation or pose a threat to the health of the consumer. quality control is a very vital element as quality of the products processed is highly heterogeneous and perishable in nature. These developments have contributed to major improvement in ensuring safety of food.Quality & Food Safety is the foundation of any food processing industry. quality.Research and development of new products . Realizing this. processing besides adequate quality control measures to improve the quality of sea food. As technology advance and public awareness grows. the industry has adopted modern methods of handling. To cope up with the increasing demand for safe food and to satisfy the needs of health / quality conscious consumers of the global seafood market. safety has become very topical subject eliciting a great deal of public concern particularly in the developed countries. Selling. consumers are becoming increasingly demanding in terms of the choice. Enforcement Officers have been given very detailed and powerful new provisions for dealing with the process.

.1993. storage and despatch of fish and fishery products to the European Union. which the exporting country can give on compliance with EC standards. to verify the conditions of production.1.  Name of the final authority which issues the health certificate  Organization of the final authority. its infrastructural facilities for inspection. o Integrated development programme for upgrading seafood quality by providing infrastructural facilities like pre-processing centers and setting up of mini lab towards quality assurance.  The authority’s legal basis. which gives its powers and its facilities for effectively verifying the implementation of the legislation in force. o Entrusting special research projects on quality problems with National Research Institutes as and when required. While fixing import conditions. It stipulates that inspections may be carried out on the spot by experts from the Commission and the Member States to assess the capability of the Competent Authority. depending on health situation in those countries. Training in new technology and inviting overseas technical experts to India ii) Quality improvement o Imparting training to technologists of Indian seafood industry on various aspects of quality control. o Monitoring of seafood quality in landing and pre-processing centers. Salient features of some of the standards now being implemented in India are given below: The Regulations (EC)EC Directive No.2. laboratory testing etc. the European Commission has taken into consideration the following:  The legislation of the exporting country  The organization of the Competent Authority of the exporting country.  Actual health conditions during production. This Directive also lays down procedure for fixing conditions for imports from third countries. 1991 prescribes the health conditions for the production and placement of fish and fishery products on the unified European market and came into force with effect from 1. storage and dispatch  Assurance.91/493/EEC dated July 22.

The results were also analyzed for the capacity utilization across the different quarters.29 per cent. It was found that during the period from October -December months contributed to 30.Having satisfied with all such requirements. Even though geographic diversification emerged with countries like Middle East and China with the strict quality regulations in US or EU.10 tones (37.39per cent followed by January. which accounted for about 60 to 65 per cent of the volume and about 70-75 per cent in value of Indian seafood export. It has been found that the brands developed across the major competitors has provided an innate edge for them in the target markets in sustaining and generating a sizeable market 3. PROBLEMS OR CHALLENGES FACED BY THE EXPORTER: 1. USA and European Union or Western Europe were the major fish importers from India. the European Commission has approved imports from the approved establishments in India. The processing plants processed . 2.unt for a major share (70-75 percent) in the foreign exchange earned through our export. they still acco. Japan.Too many exporters chasing too few markets There exists very huge competition for gaining access to the target markets. brand positioning and market segmentation exists among the competing countries.More and more capacity generation leading to less and even lesser utilization Realization of the capacity utilization was the major problem faced by them and the average capacity of the processing plan was found to be 32. There can be chances of deterioration in quality due to non-availability and that too at affordable prices.70) percent. 12 tones whereas the utilization was only.12. More than 60 percent of the landings occur during the post monsoon period which coincides with the highest export demand. the raw materials are often purchased at exorbitant prices with even forward marketing with the boat owners . Heavy competition for target market . Often price discrimination.March at28. Cut throat competition for raw material – The peak landings In the marine capture sector generally coincide with the peak season for exports. Low capacity utilization. Thus to restore parity between the demand and the supply.

Infofish of Malaysia. production and marketing of value-added products from fresh water in India. quality criteria's and subsequent RELEVANT NEWS ARTICLES: 1. The average quantum of marine fish products processed per processing plant was found to be 2. under the Ministry of Commerce & Industry. water and electricity. 6. 2. The exporters thus became a price taker than a price maker. The presence of such a buyers' market creates a dictatorship among the buyers In deciding the guidelines.The absence of-domestic demand coupled with the premium prices in the international market makes the products disposal at the whims and fancies of the importers. . improved supply and economic turmoil in the overseas markets have pushed down the value of Indian seafood exports by 25-30 % this year although the quantity of shipments may have shown a nominal increase. technology transfer.Paradox of buyers becoming price makers The export market is necessarily a buyers' market with the prices fixed by the international buyers .minimal quantities during the period during July-August and April-June. Higher cost of production and low margin of profit . is the first of its kind that envisages transfer technology for culture. for developing and marketing freshwater fish in India. The Marine Products Export Development Authority (Mpeda). a Malaysia-based international body.Double edged sword The cost of production increased exorbitantly on account of high purchase prices of the exportable species and other operating expenses like labor cost. loss in revenue. The project. compliance cost. Dictatorship of buyers . charges.781. .70 tones per annum 4. establishment cost all resulted in higher unit cost of production 5. The price uncertainties lead to delay in payments. under the FAO Common Fund for Commodities (CFC). The compliance cost of EU approval plant also increased manifold thus resulting in huge cost of production pegging the profit margin at minimal level. The three-year project has four main components: market/product studies. investment promotion and capacity building and dissemination. The high cost incurred for purchase at distant markets. Declining prices. Uncertainty in Prices – Erratic global markets and demand habits There exists uncertainty in prices in the international market with the economic recession spreading to most of the target markets. Mpeda ties up with FAO. has tied up with the Food and Agriculture Organisation (FAO) and Infofish.

Andhra Pradesh has been selected particularly considering its contributions to the country’s aquaculture production. 2013. besides business interactions.3. 4. The Marine Products Export Development Authority (MPEDA) will conduct the second edition of Aqua Aquaria India 2013 in Vijayawada from February 810. The international event showcases the latest technologies available in aquaculture and ornamental fisheries sector. the Marine Products Export Development Authority proposes to actively promote the sector in suitable areas in the country. which focuses on both aqua culture and ornamental fish sector. With global demand for organic aquaculture products increasing at a rate of about 10-15 per cent a year. . Aqua Aquaria India is the only show in its kind in Asia.