India’s Seafood Industry Sees 30.81 % Growth In Five Years

 India has witnessed an increase in seafood exports over the past few years, achieving growth of 30.81 per cent from 2019-20 to 2023-24. The concerted efforts of the government have played a pivotal role in this success, positioning India as a key player in the global seafood market.

According to a release by the Ministry of Commerce and Industry, India’s seafood industry has experienced notable growth over the past five years, marked by increasing production and export volumes as well as rising export values.

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Over the past five years, India’s marine product production and exports have steadily increased. From 141.64 lakh tonnes in production and 13.29 lakh tonnes in exports in 2019-20, production rose to 147.25 lakh tonnes while exports dipped in 2020-21 primarily due to the global COVID-19 pandemic.

By 2021-22, production reached 162.48 lakh tonnes and exports 13.98 lakh tonnes. This trend continued with production at 175.45 lakh tonnes and exports at 17.54 lakh tonnes in 2022-23. For 2023-24, production is projected to be 182.70 lakh tonnes, with exports expected to reach 18.19 lakh tonnes.

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India’s seafood export value has shown a significant upward trend over the past five years. In 2019-20, the export value stood at Rs. 46,662.85 crore, followed by a slight decline to Rs. 43,720.98 crore in 2020-21.

However, the sector rebounded strongly in the subsequent years, with exports reaching Rs. 57,586.48 crore in 2021-22 and further increasing to Rs. 63,969.14 crore in 2022-23. For the year 2023-24, the export value is projected to be Rs. 61,043.68 crore, reflecting the sustained efforts and strategic initiatives implemented by the government to boost the seafood industry.

India exported marine products to 132 countries, demonstrating its extensive reach in the global seafood market.

The USA retained its position as the major importer of Indian seafood with a 34.53 per cent share in terms of USD. In 2023-24, the USA imported 3,29,192 MT of seafood, accounting for the second-largest volume at 18.48 per cent, valued at USD 2,549.15 million.

Exports to the USA increased by 7.46 per cent in quantity and 1.42 per cent in Rs value terms. The USA also offered the second-highest unit value realization among the top 10 countries, at 7.74 USD/Kg.

China (excluding Hong Kong and Taiwan) remained the second-largest destination for Indian seafood, holding an 18.76 per cent share in USD earnings. China imported 4,51,363 MT of seafood, the largest volume at 25.33 per cent, worth USD 1,384.89 million. Although exports to China showed a positive trend with a 12.80 per cent increase in quantity, they declined by 4.21 per cent in USD terms.

Japan regained its position as the third-largest export destination in terms of USD (5.42 per cent share) and ranked fifth in volume (6.06 per cent share). The export volume to Japan was 1,07,968 MT, valued at USD 399.74 million.

Vietnam emerged as the fourth-largest export destination in terms of USD (5.30 per cent share) and volume (7.41 per cent share). The exports to Vietnam totalled 1,32,086 MT, worth USD 391.41 million, showing a decline in both volume and value terms year-on-year.

Thailand ranked as the fifth-largest export destination in terms of USD (3.82 per cent share) and held the third position by volume (7.77 per cent share). The export volume to Thailand was 1,38,457 MT, valued at USD 281.97 million, also showing a decline in both volume and value terms year-on-year.

The Indian government has implemented several initiatives to bolster the seafood export sector. A key player in this is the Marine Products Export Development Authority (MPEDA), which provides crucial support.

MPEDA offers assistance to upgrade processing facilities, establish quality testing laboratories, and participate in international trade fairs. This helps enhance the quality and competitiveness of Indian seafood products in global markets.

The government provides technical assistance for aquaculture production, a vital component of the seafood industry. This support includes the transfer of advanced technologies and best practices to increase production and productivity.

To make Indian seafood products more competitive internationally, the government in Budget 2024-25 has reduced import duties on essential ingredients used in seafood feed.

Key reductions include the complete removal of duties on fish lipid oil, algal prime, crude fish oil, and pre-dust breaded powder. Additionally, import duties on krill meal, mineral and vitamin premixes, and prawn/shrimp and fish feed have been significantly lowered.

To further incentivize seafood exports, the government has enhanced the Remission of Duties and Taxes on Export Products (RoDTEP) scheme. The refund rate for various seafood products has been increased from 2.5 per cent to 3.1 per cent of the export value, with a higher cap of Rs. 69 per kilogram.

This means exporters will receive a larger rebate for each kilogram of seafood exported, making Indian products more competitive in international markets.

Pradhan Mantri Matsya Sampada Yojana (PMMSY) aims to modernize the fisheries sector, including developing cold chain infrastructure, reducing post-harvest losses, and improving overall productivity. A stronger domestic seafood industry indirectly supports exports by ensuring a steady supply of quality products.

India’s seafood industry has demonstrated robust growth and resilience over the past five years, significantly enhancing its position in the global market. The concerted efforts by the government, encompassing infrastructure development, aquaculture support, duty reductions, export incentives, and the implementation of schemes like the Pradhan Mantri Matsya Sampada Yojana (PMMSY), have played a pivotal role in this success.

As a result, India has not only increased its production and export volumes but also expanded its market reach to 132 countries. The sustained upward trend in export value underscores the effectiveness of these strategic initiatives. Moving forward, continued support and innovative measures will be essential to maintaining this momentum and further solidifying India’s stature as a leading player in the global seafood industry.

(Except for the headline, this story has not been edited by Newsx staff and is published from a syndicated feed.)