MARINE PRODUCTS

PRESENTED BY: AMANPREET KAUR MANN

Asia Economy Watch

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June 2008

Indias 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 Indias 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
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. y 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.
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Objectives Covered
Overview of Marine Exports y What to Export? Know your Product y Where to Export? The hungry World. y How to Export? y Problems you may face. y Solutions and Golden future ahead.
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Overview: Marine Exports

Know Your Market Trends in Exports

www.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 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.  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 2004
 USA again topped the charts as Single largest importer of Indian Marine Products.

2005 till date

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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 Marine Industry Some 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.

FACTS 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 industry

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.

What to Export??

What to Export?
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Traditional Items:
Shrimps Oyster Tuna Fish Squids Lobster Frozen Fish Cuttlefish Shark Squids

Value Added Items.

Cultured Shrimp Battered Shrimp Cook Shrimp Fish Fillet.

What to Export
Year
2005-06 Q V $ 2006-07 Q V $ 2007-08 Q V $ 2008-09 Q V $ 2009-10 Q V $

Export
467297 6881.3 1424.9 412017 6092 1330.8 461329 6646.7 1478.5 512164 7245.3 1644.2 612641 8363.5 1852.9

Variation
42827 924.26 171.55 -55280 -789.36 -94.14 49312 554.74 147.71 50835 598.61 165.74 100478 1118.23 208.72

(%)
10.09 15.52 13.69 -11.83 -11.47 -6.61 11.97 9.11 11.1 11.02 9.05 11.21 19.62 15.43 12.69

Item Wise Exports

ITEMS
Frozen Shrimp

% Share to Total
22 53.88 53.84 44 17.37 17.38 9 9.53 9.49 8 6.8 6.81 4 2.19 2.2 0 0.77 0.77 1 1.4 1.44 11 8.06 8.08 100 100 100 Q V $ UV$ Q V $ UV$ Q V $ UV$ Q V $ UV$ Q V $ UV$ Q V $ UV$ Q V $ UV$ Q V $ UV$ Q V $ UV$

APR-MAR 2006-07
137397 4506.08 997.64 7.26 270751 1452.88 321.95 1.19 55701 797.37 175.75 3.16 47252 568.32 126.25 2.67 24293 183.16 40.75 1.68 2478 64.06 14.22 5.74 7200 117.3 26.63 3.7 67571 674.35 149.72 2.22 612641 8363.53 1852.93 3.02

APR-MAR 2005-06
145180 4271.51 970.43 6.68 182344 998.7 225.95 1.24 49651 549.15 124.48 2.51 52352 575.52 130.49 2.49 14167 132.56 30.03 2.12 2568 61.71 13.99 5.45 5060 81.56 18.4 3.64 60841 574.58 130.46 2.14 512164 7245.3 1644.21 3.21

VARIATION
-7784 234.57 27.22 0.58 88407 454.18 96.02 -0.05 6050 248.22 51.27 0.65 -5101 -7.2 -4.24 0.18 10125 50.6 10.72 -0.44 -90 2.35 0.24 0.29 2140 35.74 8.23 0.06 6730 99.76 19.26 0.07 100478 1118.23 208.72 -0.19

(%)
-5.36 5.49 2.8 8.63 48.48 45.48 42.5 -4.03 12.19 45.2 41.19 25.86 -9.74 -1.25 -3.25 7.19 71.47 38.17 35.71 -20.85 -3.5 3.8 1.69 5.4 42.29 43.82 44.72 1.7 11.06 17.36 14.76 3.33 19.62 15.43 12.69 -5.79

Frozen Fin Fish

Frozen Cuttle Fish

Frozen Squid

Dried items

Live items

Chilled items

Others

TOTAL

What to Export - Tradition so far. far.

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Shrimp
20% of worlds imports. Mainstay in Indias 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 Trend
 The

Indias 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 Processing Hub

The government has allowed import of raw materials required for processing plants. y More Thrust is given on Ready to Eat and Ready to Cook kind of processed items. y First seafood processing zone was developed in Kolkata, with investment of Rs 480 million. y The processing zone started with 10 large scale private sector processing units.
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New Products - Tuna Fish New Fish to Fry

Tuna fish is third most traded Fish internationally. y Tuna fish exports are targeted to reach 400 million dollar by 2010. y Andaman and Nicobar Island holds 25-30 per cent of tuna potential.
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New products Mud Crabs

Technology

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 Bass Fish

High

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 Fish in Town

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Most 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
Major

Cont.

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
 India

mainly produces Black Tiger Shrimp (1.5 lac tonnes).  It has faced stiff competition from Chinese Vannamei Shrimps because
It has low production cost, and therefore cheap. Resistant to virus diseases.

Vannamei Shrimps
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cont

Per Hectare production is 20 tonnes, against 2-3 tonnes of Black tiger Shrimp. y Margins from 3 tonnes of Vannamie Shrimp is more than margins from 3 tonnes of Indian Shrimps. y 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 in India

Fisherman Commission Agent Supplier (Pre-processor) Exporter y Price sharing pattern is as follows:
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Role of supply chain agents!

Where to Export??

Where to Export?
Declining Markets y EU (26%)
Spain UK Italy

USA (23%) y Japan (16%)

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Emerging Markets Vietnam Belgium Canada Germany Hong Kong China(14%)

Country Wise Exports

COUNTRY JAPAN % share
to Total 11 16.18 16.15 7 16.12 16.03 Q V $ Q V $ Q V $ Q V $ Q 7.37 7.36 4 4.44 4.46 9 9.06 9.05 100 100 100 V $ Q V $ Q V $ Q V $

APR-MAR
2006-07 67437 1353.38 299.2 43758 1347.8 297.08 149760 2759.92 610.86 203513 1156.96 259.06 67650 616.7 136.43 23599 371.47 82.56 56924 757.3 167.75 612641 8363.53 1852.93

APR-MAR
2005-06 59785 1155.97 262.79 55817 1639.24 372.62 136842 2134.25 484.02 137076 849.45 191.99 60140 585.85 132.7 22270 307.65 69.64 40234 572.9 130.44 512164 7245.3 1644.21

VARIATION
7652 197.42 36.41 -12059 -291.44 -75.54 12918 625.67 126.84 66437 307.52 67.06 7510 30.85 3.72 1329 63.82 12.92 16691 184.4 37.31 100478 1118.23 208.72

%
12.8 17.08 13.85 -21.6 -17.78 -20.27 9.44 29.32 26.21 48.47 36.2 34.93 12.49 5.27 2.81 5.97 20.74 18.55 41.48 32.19 28.6 19.62 15.43 12.69

USA

European Union

24 33 32.97 33 13.83 13.98 11

CHINA

South East Asia

Middle East

OTHERS

TOTAL

How To Export?

How to Export?
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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)

MPEDA Marine Products Exports Development

authority

Head Quatered Kochi (Kerela) y 6 Regional/ 4 Sub- Regional Offices y 2 International Offices New York and Tokyo.
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MPEDA was constituted in 1972 under the Marine Products Export Development Authority Act 1972 (No.13 of 1972). y Its aims to covers fisheries of all kinds, increasing exports, specifying standards, processing, marketing, extension and training in various aspects of the industry. y 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.
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Vision - MPEDA
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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.

Role of MPEDA in indian acquaculture

MPEDA was given the mandate for development of shrimp/prawn culture for augmenting exports from the country since 1979. y MPEDA plans, popularizes and implements various schemes for promotion of exportoriented aquaculture in the country. y Formulation of various rules and regulations connected with fishery and aquaculture. y MPEDA strives to ensure sustainability of aquaculture and make it environmentally friendly.
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Schemes - MPEDA
Logo Scheme to gain wide market acceptance. y Active participation in 15 International Trade Fairs. y 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.
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Services offered by MPEDA

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Registration 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 industry Promotion 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 Products

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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.
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Seafood Exporters Association of India (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. y 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.
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SEAI - 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. y 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.
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India International Sea Food Show(IISS )

One of the largest seafood fairs in Asia. y 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).
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Value addition
Adopting the latest technologies and by tapping the unexploited and under exploited fishery resources y 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 y Setting up new units, expanding their capacity and diversifying their current activities y Foreign collaboration, investments, tie ups in marketing of value added products
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Challenges!

Challenges
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.
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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 Strategy
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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!!