Present Status, Export potential and

Challenges of Fisheries Industry in

IndiaBy: Abhishek Kumar Sinha

04-2046-2012

Marine Facts

Employs around 1.5 crore people of the country.

Indian Fishing Industry got a major boost after the declaration of EEZ (Exclusive Economic Zone) in 1977.

Global Share of India is 4.2%, while China has 69% share in production.

Major products are Shrimps, frozen fish, cuttlefish, squid and dried items.

Cont….

• Marine product exports has steadily grown over the years; from a mere

Rs.3.92 crore in 1961-62 to Rs. 11,130.52 crore in 2010-11.

Until 1960

Products were Dried Shrimps and Dried Fish

Market was neighboring countries.

From 1960 – 1977

Products were Frozen Shrimps

Major market beside neighboring countries were USA, Japan. USA

emerged as single largest buyer.

From 1977 – 2001

Japan Emerged as single largest buyer followed by Western European

Countries.

• 2001 – 2004USA again topped the charts as Single largest importer of

Indian Marine Products.• 2005 – till date

European union became largest importer importing 33% of Products

Japan 16.18% USA 16.12 %China 13.83%South East Asia 7%Middle East Asia is New emerging Market.The product preference is shifting from Frozen Shrimps to

Processed Products and other marine products.

THE UNTAPPED POTENTIAL

Meager utilization of natural gift. Total production

Potential – 15 Million Tonnes Production – 2.5 Million Tonnes

Fresh waters and Ponds Total Available – 2.4 Million Hectares. Utilized – 1.5 Million Hectares.

Production Per Hectare (Pond Culture) Potential – 5 Tonnes per Hec. Production – 2 Tonnes per Hec.

Production Per Hectare (Reservoirs and Tanks) Potential – 600 Kg per Hec. Production – 100 Kg per Hec.

(SOURCE: THE HINDU – SURVEY OF INDIAN INDUSTRY 2007)

Top Aquaculture producers(2010)Country Production(million tonnes)

China 36.7India 4.6

Vietnam 2.7Indonesia 2.3Thailand 1.4

Bangladesh 1.3Norway 1.0Egypt 0.92

Myanmar 0.85Philippines 0.74

Item-wise exports 2012-13(quantity)

Export of marine Products(2012-13)

Japan8%

U.S.A10%

EU17%

china9%

South east Asia37%

Middle East4%

Others14%

By quantity By value

Japan11%

U.S.A21%

EU22%

china

8%

South east Asia23%

Middle East6%

Others9%

Marine imports values(2006)

Indian Fisheries at a Glance(2011-12)

• Global position: 2nd (1st in inland)• Contribution of Fisheries to GDP(%):0.79• Contribution of Fisheries to Agril. GDP(%): 4.15• Per capita fish availability(kg): 9.8• Annual Export earning(Rs. In crore): 16,597.23• Growth of fisheries sector during 11th Five yr

plan: 3.6 p.a.

Indian Aquaculture and Fisheries Resources

• Coastline:- 8118 kms• Rivers and Canals: 197,024 kms.• Reservoirs: 3.15 mha• Ponds & Tanks: 2.35 mha• Brackish waters: 1.24 mha• Estuaries: 0.29 mha

National Fisheries Development Board 2006

Fish Production(State-wise)

State Production 2011-12 (in 000 tonnes)

Andhra Pradesh 1603.17West Bengal 1472.05

Gujarat 783.72Kerala 693.21

Maharashtra 578.79

Fisheries production(in million tonnes)

2000-01 2002-03 2004-05 2006-07 2008-09 2010-11

2.81 2.99 2.78 3 2.97 3.222.84

3.213.52

3.87

4.635.2

5.656.2 6.3

6.877.6

8.42

MARINE INLAND TOTAL

In Million Tonnes

Source: Compiled from various reports

Fish exports from India

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

581701.12

677880.15

573940.47603221.12

643444.38

729610.83

623557.46 628833.34

549312.669999999

1113051.91in Rs. Lakh

National Fisheries Development Board (NFDB)

National Fisheries Development Board (NFDB) was established by the Government in 2006 as a special purpose vehicle for accelerated development of the fisheries and aquaculture in a sustainable manner through upgradation of production technologies, management and utilization of resources, establishment of infrastructure for post-harvest operations and markets.

NFDB has during the Eleventh Plan Period invested nearly Rs.400 crore for various developmental activities. It is proposed to merge all Centrally Sponsored Schemes aimed at growth and enhancement of production and productivity in NFDB during Twelfth Plan to provide greater focus and an integrated approach to the development of fisheries and aquaculture in the country.

Challenges

• Shortage of quality and healthy fish seeds and other critical inputs.

• Lack of resource-specific fishing vessels.• Inadequate awareness about nutritional and

economic benefits of fish.• Inadequate extension staff for fisheries and

training for fishers and fisheries personnel.• Low utilization and productivity of water bodies.

Cont….

• Impose of Anti-dumping duty by US in 2004.• 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. 55 present is major challenge to overcome.

Export policy• To insulate Indian exports from the decline in demand from developed

countries, focus on diversification of Indian exports to other markets, specially those located in Latin America, Africa, parts of Asia and Ocenia. 

• 26 new countries have been included within the ambit of Focus Market Scheme.

• The incentives provided under Focus Market Scheme have been increased from 2.5% to 3%.

• There has been a significant increase in the outlay under ‘Market Linked Focus Product Scheme’ by inclusion of more markets and products.  This ensures support for exports to all countries in Africa and Latin America.

Strengths of Indian Fisheries• Vast Fisheries resources in India

• Second largest fish producer in the world

• Ranks second in aquaculture Production

• 3.41% of marine and 9.42 % of inland world fish production

• Source of livelihood for 14.48 million

• Contribution of nearly 0.8% of GDP and 4.4% of Agriculture GDP

Strengths (condt..)

• Potential Source of Food and nutritional Security.

• Tool for Poverty alleviation and women empowerment.

• About 11 fold increase in fish production (0.752 mt in 1950-51 to 8.67 mt in 2011-12)

• Seafood exports reached a record high of Rs.18,856 crore ($3.5 billion) in fiscal year 2012-13.

• Contributing about 17% of national agriculture export.

Weakness

• Yield gap in fisheries resources particularly in reservoir fisheries. Average yields reduced to 1,000 kg/ ha where as potential is 3-4 thousand kgs / hectare

• Fish stocks in India's territorial deep-sea waters also remain untapped owing to the dearth of suitable fishing vessels

Weakness (contd…)

• Post harvest losses are estimated worth over Rs.15,000 Crores (both Marine and Inland) which is about 25% of the total Indian marine and Inland Industry which is worth of over Rs.61,000Crore

• Low value addition and fish Processing. There are no organized and coherent efforts in the country to formulate and implement policies for the processed fish/fishery products for domestic markets.

Opportunities• The potential yield of the Indian Exclusive Economic

Zone (EEZ) has been revalidated as 4.41 million tonnes

• Fisheries and aqua-culture provide for diversification as well as value addition in farming practices. Due to value addition, fish farmers and fishermen across the country will receive remunerative prices for their produce.

• In case of aqua-culture, scope exists for bringing more fish species with a focus on food fish, ornamental species and those with potentials for sport and tourism.

Opportunities (Contd..)

• Growing demand for domestic fresh water fish. About 35% of Indian population is fish eaters and the per capita consumption is 9.8 kg whereas the recommended intake is 13 kg.

• Fish production can be enhanced in rain fed water bodies by 2 to 4 times –(MGNREGS)

• Over 250 million economically strong potential consumers of food and the domestic demand for the fish and processed fish food is increasing very rapidly. The prices are more than doubled in the decade.

Threats

• The marine fish catch is stagnating due to uncontrolled fishing and over exploitation of coastal resources.

• Climate change and other factors are leading to decrease in marine fish catches and the climate change is also having impact on inland fisheries

• The Indian retail departmental stores is already having ready to eat imported processed fishery products such as canned Tuna, Salmon etc. If India is not geared to meet the international competition there is increased threat from such products flooding the Indian markets.

Threats (Contd..)

• Unsustainable capture inland fishery activities in the past led to habitat degradation, multiple use of inland water bodies with least priority to fishery wealth.

• Non compliance of FAO –CCRF principles

• Quality of the fish seed is the most important problem and there is no organised brood stock production activity

• No indigenously commercial fish feed mills

• Lack of infrastructure and skilled man power in disease diagnostic labs in the States.

WTO & Fisheries

References• Annual report 2012-13, Department Of Animal

Husbandry, Dairying & FisheriesMinistry of Agriculture, Government of India

• Annual Report 2007-08, National Fisheries Development Board, Hyderabad

• http://www.fao.org/docrep/005/y3914e/y3914e00.HTM(accessed on 04/11/13)

• Fisheries and Aquaculture report, FAO report 2010• ftp://ftp.fao.org/docrep/fao/005/y3914e/y3914e00.pdf• Handbook of fisheries statistics 2008, Department of

Animal Husbandry, Dairying and Fisheries, Ministry of Agriculture, Government of india