MARINE MARINE PRODUCTSPRODUCTS

PRESENTED BY: AMANPREET KAUR MANN

Asia Economy Watch Asia Economy Watch June June

20082008

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.

In a paper brought out by Associated chambers of commerce & industry of India (ASSOCHAM) on “Market of Seafoods in India”, it has been projected that India’s Seafood exports, which remained at $1.6 billion in 2005-06 and is anticipated to reach around $2.2 billion in 2007-08, have potential to accelerate faster in view of their growing demand in trading blocks like the EU, Middle East, China, Canada, Russia.

The HINDU… The HINDU… Exports of marine products from India

during the financial year 2010-11 touched the $2.67-billion mark, growing 10.96 per cent in quantity, 20.42 per cent in rupee value and 25.55 per cent in dollar realisation over the figures for 2009-10, say provisional export data.

This is the first time that the marine products industry in India had crossed the $2.5-billion mark. The average unit value realisation went up by 13 per cent.

Objectives CoveredObjectives CoveredOverview of Marine ExportsWhat to Export? Know your

ProductWhere to Export? The hungry

World.How to Export?Problems you may face.Solutions and Golden future

ahead.

Overview: Marine Overview: Marine ExportsExports

Know Your Market – Trends Know Your Market – Trends in Exportsin Exports

www.mpeda.comwww.mpeda.com

Marine product exports has steadily grown over the years from a mere Rs.3.92 crore in 1961-62 to $ 2.5 billion in 2010 , 1.4% of the total exports from India.

Until 1960Products were Dried Shrimps and Dried FishMarket was neighboring countries.

From 1960 – 1977Products were Frozen ShrimpsMajor market beside neighboring countries were USA, Japan. USA

emerged as single largest buyer.Seafood processing units with modern machinery for freezing and

production of value added products were set up at all important centers in the country for export processing.

1977 – 2001 Japan Emerged as single largest buyer followed by Western European

Countries.

TILL 2001 Japan retained its position as the single largest buyer for our marine products accounting for about 31% in the total export value.

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

Products.

2005 – till dateEuropean union became largest importer importing 33% of ProductsJapan 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 Marine Industry – The Marine Industry – Some FactsSome Facts

Exported to more than 90 countries.

India has one of longest Coastline of 8118 Km.

Global Share of India is 4.2% at second 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.

FACTSFACTS

cont……. cont…….

Employees 30 Lac 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.

Indian seafood industryIndian seafood industry

Marine Products – The Marine Products – The Untapped PotentialUntapped 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.

◦What to Export??

What to Export?What to Export?

Traditional Items:

Shrimps OysterTuna FishSquidsLobster Frozen FishCuttlefishSharkSquids

Value Added Items.

Cultured ShrimpBattered ShrimpCook ShrimpFish Fillet.

What to ExportWhat to Export  Year   Export Variation (%)

2005-06 Q 467297 42827 10.09

  V 6881.3 924.26 15.52

  $ 1424.9 171.55 13.69

2006-07 Q 412017 -55280 -11.83

  V 6092 -789.36 -11.47

  $ 1330.8 -94.14 -6.61

2007-08 Q 461329 49312 11.97

  V 6646.7 554.74 9.11

  $ 1478.5 147.71 11.1

2008-09 Q 512164 50835 11.02

  V 7245.3 598.61 9.05

  $ 1644.2 165.74 11.21

2009-10 Q 612641 100478 19.62

  V 8363.5 1118.23 15.43

  $ 1852.9 208.72 12.69

Item Wise ExportsItem Wise ExportsITEMS  % Share to

Total  APR-MAR APR-MAR VARIATION (%)

2006-07 2005-06

Frozen Shrimp 22 Q 137397 145180 -7784 -5.3653.88 V 4506.08 4271.51 234.57 5.4953.84 $ 997.64 970.43 27.22 2.8

  UV$ 7.26 6.68 0.58 8.63Frozen Fin Fish 44 Q 270751 182344 88407 48.48

17.37 V 1452.88 998.7 454.18 45.4817.38 $ 321.95 225.95 96.02 42.5

  UV$ 1.19 1.24 -0.05 -4.03Frozen Cuttle

Fish 9 Q 55701 49651 6050 12.19

9.53 V 797.37 549.15 248.22 45.29.49 $ 175.75 124.48 51.27 41.19

  UV$ 3.16 2.51 0.65 25.86Frozen Squid 8 Q 47252 52352 -5101 -9.74

6.8 V 568.32 575.52 -7.2 -1.256.81 $ 126.25 130.49 -4.24 -3.25

  UV$ 2.67 2.49 0.18 7.19Dried items 4 Q 24293 14167 10125 71.47

2.19 V 183.16 132.56 50.6 38.172.2 $ 40.75 30.03 10.72 35.71

  UV$ 1.68 2.12 -0.44 -20.85Live items 0 Q 2478 2568 -90 -3.5

0.77 V 64.06 61.71 2.35 3.80.77 $ 14.22 13.99 0.24 1.69

  UV$ 5.74 5.45 0.29 5.4Chilled items 1 Q 7200 5060 2140 42.29

1.4 V 117.3 81.56 35.74 43.821.44 $ 26.63 18.4 8.23 44.72

  UV$ 3.7 3.64 0.06 1.7Others  11 Q 67571 60841 6730 11.06

8.06 V 674.35 574.58 99.76 17.368.08 $ 149.72 130.46 19.26 14.76

  UV$ 2.22 2.14 0.07 3.33TOTAL  100 Q 612641 512164 100478 19.62

100 V 8363.53 7245.3 1118.23 15.43100 $ 1852.93 1644.21 208.72 12.69

  UV$ 3.02 3.21 -0.19 -5.79

What to Export - Tradition What to Export - Tradition so farso far..Shrimp

◦ 20% of world’s imports.◦ Mainstay in India’s Exports 65.88%

(2004), 53% (2008)

200 world class Seafood processing factories.

Kerala has 40 percent of the total processing Industries, followed by AP, Tamil Nadu and Gujarat.

Changing TrendChanging Trend

The India’s exports of Shrimps and frozen Squid are 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, and Pearl Spot fishes.

India - A Seafood India - A Seafood Processing Processing HubHub

The government has allowed import of raw materials required for processing plants.

More Thrust is given on “Ready to Eat” and “Ready to Cook” kind of processed items.

First seafood processing zone was developed in Kolkata, with investment of Rs 480 million.

The processing zone started with 10 large scale private sector processing units.

New Products - Tuna Fish New Products - Tuna Fish New Fish to FryNew Fish to Fry

Tuna fish is third most traded Fish internationally.

Tuna fish exports are targeted to reach 400 million dollar by 2010.

Andaman and Nicobar Island holds 25-30 per cent of tuna potential.

New products – Mud New products – Mud CrabsCrabsTechnology for hatchery seed

production of Mud Crabs and Sea Bass fish has recently been developed by CIBA (Central Institute of Brackish Water Aquaculture) and MPEDA .

Potential sites spotted for this are Tamil Nadu and Andhra Pradesh.

Mud Crab is identified as best substitute of Shrimps.

By using the technology 1 lakh tonnes of Mud Crabs can be produced giving revenue of Rs. 2000 Crores.

New products – Sea New products – Sea Bass FishBass FishHigh valued Sea Bass Fishes can

tolerate wide variation in environmental conditions.

It can be produced in vast coastal region example Andhra Pradesh, Tamil Nadu, Kerala, Maharashtra.

The technology has been perfected in Southeast Asia, and is in nascent stage in India.

One kilogram of Sea Bass fish can give a revenue of Rs 100.

Ornamental Fish – New Ornamental Fish – New Fish in TownFish in TownMost popular among Hobbyist.Used in Aquariums around the World.Major Exporters: • Singapore,• Hong Kong, • Malaysia, • Thailand, • Philippines, • Sri Lanka, • Taiwan, • Indonesia and • India.

Ornamental Fish – Cont.Ornamental Fish – Cont.

Major Importers USA, Japan and Europe. China and South Africa are Emerging Markets.

Global Trade of $5 Billion annually, growing by 6%.

India Exports worth Rs 1.58 Crores, growing at 20% annually.

The tropical ornamental fishes from North eastern and Southern provinces of India are in great demand in the hobbyists market .

Loaches, Eels, Barbs, Catfish, Goby

Vannamei Shrimps Vannamei Shrimps India mainly produces Black Tiger Shrimp (1.5 lac tonnes).

It has faced stiff competition from Chinese Vannamei Shrimps becauseIt has low production cost, and therefore cheap.

Resistant to virus diseases.

Vannamei Shrimps Vannamei Shrimps cont………cont………

Per Hectare production is 20 tonnes, against 2-3 tonnes of Black tiger Shrimp.

Margins from 3 tonnes of Vannamie Shrimp is more than margins from 3 tonnes of Indian Shrimps.

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.

Seafood supply chain Seafood supply chain in Indiain IndiaFisherman ➔ Commission Agent ➔ Supplier (Pre-processor) ➔ Exporter

Price sharing pattern is as follows:

Role of supply chain Role of supply chain agents!agents!

◦Where to Export??

Where to Export?Where to Export?

Declining Markets

EU (26%)◦Spain◦UK◦Italy

USA (23%)Japan (16%)

Emerging Markets

• Vietnam• Belgium• Canada• Germany• Hong Kong• China(14%)

Country Wise ExportsCountry Wise ExportsCOUNTRY % share   APR-MAR APR-MAR VARIATION %

  to Total   2006-07 2005-06    

JAPAN 11 Q 67437 59785 7652 12.8

  16.18 V 1353.38 1155.97 197.42 17.08

  16.15 $ 299.2 262.79 36.41 13.85

USA 7 Q 43758 55817 -12059 -21.6

  16.12 V 1347.8 1639.24 -291.44 -17.78

  16.03 $ 297.08 372.62 -75.54 -20.27

European Union 24 Q 149760 136842 12918 9.44

  33 V 2759.92 2134.25 625.67 29.32

  32.97 $ 610.86 484.02 126.84 26.21

CHINA 33 Q 203513 137076 66437 48.47

  13.83 V 1156.96 849.45 307.52 36.2

  13.98 $ 259.06 191.99 67.06 34.93

South East Asia

11

Q 67650 60140 7510 12.49

  7.37 V 616.7 585.85 30.85 5.27

  7.36 $ 136.43 132.7 3.72 2.81

Middle East 4 Q 23599 22270 1329 5.97

  4.44 V 371.47 307.65 63.82 20.74

  4.46 $ 82.56 69.64 12.92 18.55

OTHERS 9 Q 56924 40234 16691 41.48

  9.06 V 757.3 572.9 184.4 32.19

  9.05 $ 167.75 130.44 37.31 28.6

TOTAL 100 Q 612641 512164 100478 19.62

  100 V 8363.53 7245.3 1118.23 15.43

  100 $ 1852.93 1644.21 208.72 12.69

How To Export?

How to Export?How to Export?Chennai Port handles 24% in

terms of Value, but the carriage is declining over the years, the emerging high capacity ports are◦Haldia◦Tuticorin◦Kochi

Marine Products Exports Development Authority (MPEDA)

MPEDAMPEDA – – Marine Products Exports Marine Products Exports Development Development authority authority

Head Quatered – Kochi (Kerela)6 Regional/ 4 Sub- Regional Offices2 International Offices – New York

and Tokyo.

MPEDA was constituted in 1972 under the Marine Products Export Development Authority Act 1972 (No.13 of 1972).

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.

Vision - MPEDAVision - MPEDAOur 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.

Role of MPEDA in indian Role of MPEDA in indian acquacultureacquacultureMPEDA was given the mandate for

development of shrimp/prawn culture for augmenting exports from the country since 1979. 

MPEDA plans, popularizes and implements various schemes for promotion of export-oriented aquaculture in the country.

Formulation of various rules and regulations connected with fishery and aquaculture.

MPEDA strives to ensure sustainability of aquaculture and make it environmentally friendly.

Schemes - MPEDASchemes - MPEDALogo Scheme – to gain wide market acceptance.

Active participation in 15 International Trade Fairs.

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.

ServicesServices offered by offered by MPEDAMPEDARegistration 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 industryPromotion of brackish water

aquaculture for production of prawn for export.

Promotion of deep sea fishing projects through test fishing, joint venture and equity participation.

FTP: Fish & Fishery FTP: Fish & Fishery ProductsProducts

Import for  export production   ◦ Advance authorization for  duty free import of  inputs for export

production. ◦ Manufacturer exporters, merchant exporters tied to supporting

manufacturers and service providers eligible for import of capital goods at 5% Customs duty linked to fulfillment of export obligation in 8 to12 years under EPCG Scheme. 

EOU/EPZ/SEZ  ◦ Scheme of 100% EOU/Export Processing Zone/Special Economic Zone

for export production continues.  No trading units permitted under the scheme.

PACKAGE FOR MARINE SECTOR◦ A self removal procedure for clearance of waste shall be applicable,

subject to prescribed wastage norms.◦ Duty free import of specified specialized inputs to enable us to achieve

a higher value addition and enter new export markets.

  40

Seafood Exporters Seafood Exporters Association of India Association of India (SEAI)(SEAI)

Incorporated with the main objective to protect and promote the interest of the companies engaged in the seafood business and to develop the international trade of seafood from India.

SEAI has its corporate base in Cochin in Kerala and eight regional offices in Kerala, Tamil Nadu, Karnataka, Gujarat, Orissa, West Bengal, Maharashtra and Andhra Pradesh.

41

SEAI - FunctionsSEAI - Functions

Seafood Exporters Association of India is focussed on providing better technology, food safety assurance, logistics and marketing to create a competitive edge for the Indian market.

SEAI is in the lookout of establishing various infrastructure facilities in various coastal states like landing centres, water treatment plants, common effluent treatment plants etc.

42

India International Sea India International Sea Food Show(IISS )Food Show(IISS )

One of the largest seafood fairs in Asia.

India International Seafood Show, a biennial global event, jointly hosted by the Marine Products Export Development Authority (MPEDA) and the Seafood Exporters Association of India (SEAI). 

43

Value additionValue additionAdopting the latest technologies and

by tapping the unexploited and under exploited fishery resources

MPEDAs 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

Setting up new units, expanding their capacity and diversifying their current activities

Foreign collaboration, investments, tie ups in marketing of value added products

Challenges!Challenges!

ChallengesChallenges 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. 40 present is major challenge to overcome.

Challenges Cont.Challenges Cont.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.

As a result of Above, the financial institutions have lost confidence in Small and Medium Players dominated Indian Fisheries Industry.

Export StrategyExport Strategy It is necessary to treat marine products as

technology Intensive sector.

“Value addition has been considered as the thrust area. Indian seafood processing units will be encouraged to go in for value addition and export through setting up new units, expanding their capacity and diversifying their current activities. Foreign collaboration, investments, tie ups in marketing of value added products and fish import for further processing and export in value added forms will be encouraged.”

- G. Mohan Kumar  Chairman, MPEDA

Thank You!!