OPPORTUNITIES IN MARINE PRODUCTS EXPORT SECTOR K S

OPPORTUNITIES IN MARINE PRODUCTS EXPORT SECTOR K. S. SRINIVAS IAS CHAIRMAN THE MARINE PRODUCTS EXPORT DEVELOPMENT AUTHORITY (MIN. OF COMMERCE & INDUSTRY, GOVT. OF INDIA) KOCHI

Indian Fisheries Scenario � 3 rd largest producer of fish in the world. � 6 th largest producer of capture fisheries. � 2 nd largest aquaculture producer after China. (C) MPEDA, 2019

Indian Seafood Export Scenario �Fourth largest exporter of seafood in 2017 (GLOBEFISH) �Largest supplier of frozen shrimp to USA �Largest supplier of frozen shrimp to Japan in 2018 �Largest supplier of cephalopods to EU �Topmost seafood supplier to UAE (C) MPEDA, 2019

Marine Products Export from India 2017 -18 8000 All Time High 7081. 55 7000 US $ Million 6000 5511. 12 5777. 61 5000 5007. 70 4000 3508. 45 2856. 92 3000 2000 4687. 94 3511. 67 1899. 09 1908. 63 2132. 84 1000 0 2007 -08 (C) MPEDA, 2019 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 2016 -17 2017 -18

Item-wise share in export value: 2017 -18 (Quantity) FR CUTTLE FISH 5% FROZEN FISH 26% FR SQUID 7% FROZEN SHRIMP 41% (C) MPEDA, 2019 DRIED ITEM 6% OTHERS 13% LIVE ITEMS CHILLED 1% ITEMS 1%

Item-wise share in export value: 2017 -18 (US$) FROZEN FISH 10% FROZEN SHRIMP 68% FR CUTTLE FISH 5% FR SQUID 5% DRIED ITEM LIVE ITEMS 2% CHILLED 1% ITEMS OTHERS 1% 6% (C) MPEDA, 2019

Market-wise share in export value: 2017 -18 (Quantity) MIDDLE EAST 5% OTHERS Japan 9% 6% USA 18% SOUTH EAST ASIA 45% EUROPEAN UNION 14% CHINA 4% (C) MPEDA, 2019

Market-wise share in export value: 2017 -18 (USD) MIDDLE EAST 4% OTHERS 6% Japan 6% USA 33% SOUTH EAST ASIA 32% EUROPEAN UNION 16% CHINA 3% (C) MPEDA, 2019

Aquaculture (C) MPEDA, 2019

Aquaculture �Aquaculture production has been increasing at an annually compounded rate of 20%. � The increase has happened both on account of increase in area under culture as well as increase in productivity. �India’s share in global shrimp exports increased to about 15 % in terms of quantity and about 16% in terms of value in 2017 from about 6% in 2009. (C) MPEDA, 2019

Aquaculture � Farmed shrimp production - increased to 6, 90, 000 MT in 2017 -18; with over 800% increase in a decade. �The area under shrimp culture increased by 40% during the same period to 1, 52, 600 ha in 2017 -18. �The average productivity rose over 450% to 4. 46 tons/Ha/Year during the same period. (C) MPEDA, 2019

Seafood exports – Kerala ü 3 rd largest seafood exporting state in terms of quantity with an annual export of 1, 78, 646 MT. ü 2 nd position in terms of export value of its export is worth Rs. 5, 919 Crore (US $ 930 million). ü The seafood export from Kerala is mainly dependent on capture fishery and cultured shrimp brought from Andhra Pradesh. ü Total farmed shrimp production in Kerala is 1, 731 tons (C) MPEDA, 2019

Diversification of Aquaculture � The diversification of aquaculture activities will assist in sourcing more raw material within the state and help to augment the exports. � There around 6 major candidate species suitable for expanding aquaculture production in the state. (C) MPEDA, 2019

Candidate species for Aquaculture Diversification in Kerala Seabass (C) MPEDA, 2019 Mud crab

Candidate species for Aquaculture Diversification in Kerala Tilapia (Genetically Improved Farmed Tilapia) (C) MPEDA, 2019 Cobia

Candidate species for Aquaculture Diversification in Kerala Fresh water prawn (Scampi) (C) MPEDA, 2019 Vannamei shrimp

Opportunity for Development - Freshwater § If the state utilises 0. 1% of 42, 000 Ha reservoir area ie. , 42 Ha for cage culture of commercially important species of fish like Seabass, GIFT etc. the expected production is 1500 – 3000 MT of fish. § Sold @ Rs. 200 per kg, this will earn Rs. 3 - 6 Crore depending on the species farmed. (C) MPEDA, 2019

Freshwater Aquaculture § Similarly, if the state utilises 1000 ha area of freshwater ponds for scientific aquaculture of Tilapia, the production will be around 5, 000 MT, earning Rs. 100 Crore @Rs. 200 /kg. (C) MPEDA, 2019

Opportunity for Development - Brackishwater � Kerala is having 65, 000 Ha of Brackish water area � Brackishwater area can be developed for farming vannamei or crab or Seabass � Development of 2, 500 ha under scientific vannamei farming can yield 25, 000 MT of shrimp (@ 10 tons /Ha in two crops) � The estimated revenue from the production is Rs. 750 Crore @Rs. 300/kg farm gate price. (C) MPEDA, 2019

Seabass cage culture in ponds (C) MPEDA, 2019

Brackish water Aquaculture § Mud crab or mangrove crab is another high value item with great demand in live and soft shell forms in international markets. § An area of 200 ha can be developed for mud crab culture if two crab hatcheries are established. The seed requirement is 1 million. § The expected production from 200 ha is 210 MT. Expected revenue is Rs. 12. 50 Crore @Rs. 600/kg. For a harvest size of 600 g. (C) MPEDA, 2019

Processing and Value Addition (C) MPEDA, 2019

Processing and Value Addition � Prepared and preserved fish and fishery products are coming under chapter 16 of ITC –HS which are highly valued added. � India’s export contribution for products under chapter 16 is 5. 03%. � Thailand’s & Vietnam’s contribution for the under chapter 16 is respectively 64% & 26%. � At present major share of our exports are in raw and minimally worked form providing opportunities in value addition. (C) MPEDA, 2019

Export processing infrastructure in Kerala Facilities Number /Capacity Registered exporters 246 Manufacturer Exporters 128 Total seafood processing plants 114 EU approved units 91 Non-EU units 23 Total installed capacity (MT/day) Frozen Storages (MT) (C) MPEDA, 2019 4, 213 72, 919

Assistance schemes (C) MPEDA, 2019

SUPPORT FOR HIGH END & INNOVATIVE VALUE ADDITION FOR EXPORTS Technology development for Specific Value Added Products Assistance for export handling units for Live/Chilled and Dried marine products. Assistance @ 50% of the cost upto a max. of Rs. 5 Crore* Assistance @ 50% of the cost upto a max. of Rs. 40 lakh* *as per scheme conditions (C) MPEDA, 2019

Advantages for investment in Kerala � Good domestic demand � Availability of technically qualified man power � Presence of major R&D Institutes like MPEDA, CMFRI, CIFT, NIFPHATT, CIFNET, KUFOS & CUSAT � Aquaculture potential in reservoirs, lakes, back waters, bays and estuaries for fish, bivalves etc. � Potential for diverse ethnic seafood cuisine targeting Middle East & Europe. (C) MPEDA, 2019

Advantages for investment in Kerala � Increased freshwater fish production will help to expand the fish processing units to inland areas. � Availability of inland waterways to mobilise seafood cargo. � 4 international airports facilitating connectivity to East Asia and Middle East for exports in live and chilled forms. � Sea port connectivity through Cochin and upcoming seaports like Vizhinjam & Colachel. � Cochin port is a designated port for import of seafood – which could be used for re-processing. (C) MPEDA, 2019

Policy interventions § The state may earmark traditional farming systems such as Pokkali or Kol lands exclusively for native species such as white shrimp (Penaeus indicus) or black tiger shrimp (Penaeus monodon) throughout the year. § These species also enjoy niche markets abroad. (C) MPEDA, 2019

Policy interventions • Hatcheries for Tilapia, Sea bass and Mud Crab need to be established for meeting the seed requirements. MPEDA can provide technical assistance. • Control Antibiotic Usage in Aquaculture - G. O. similar to AP Govt. may be brought out. • State may set up disease diagnostics and antibiotic testing facilities nearer to farming areas. • State may also encourage farming of bivalves (Oysters, mussels & clams) in estuaries and back waters. (C) MPEDA, 2019

Policy interventions – Modernization of Fishing harbours • The lack of adequate infrastructure facilities in fishing harbours and landing centres leads to post harvest losses and reduction in quality of fish landed, and which in turn reduces the cost realization • Upgradation of fishing harbours and landing centres to international standards is very much required to address this. • Professional management bodies may be formed to manage the fishing harbours and landing centres. • State may consider modernisation of fishing harbours and landing centers in PPP or BOT mode. (C) MPEDA, 2019

Way forward � The seafood processing units of the states have a capacity to process around 4200 tons of seafood every day. � The average annual capacity utilisation is around 25 -30% only. � State sources raw material from outside during lean seasons. � State shall become self sufficient in raw material through increased aquaculture production. � State may also encourage raw material imports for re processing and value addition. (C) MPEDA, 2019

THANK YOU (C) MPEDA, 2019