India has set a target of $12 billion Marine exports in the next 2 years

Apr 5, 2024 India Shipping News

NEW DELHI : The Government of India aims to increase its marine product exports to $12 billion in the next two years by increasing its processing capacity and shifting to higher-value-added products. In 2022-23, India’s total marine product exports were $8.09 billion (Rs 63,969 crore). 

According to the latest data, the marine export from India from April to February 2023 – 24 was $6.8 billion, a decline of 7.5 % compared to the previous year. The decline in exports for the 2023-24 fiscal year is attributed to a decline in exports to the US and Europe.

The government of India has set a target of marine exports of $9.1 billion in 2023-24.

India is the third-largest fish-producing country in the world, contributing 8 per cent to global fish production. India ranks second in aquaculture production in the world. 

Main Marine Export item (2022-23)

The top marine items to be exported from India are ;

1. Frozen shrimp. The value of exports was $5.41 billion or Rs 43135.58 crore.
2. Frozen Fish- $687.05 million  or Rs 5503.18 crore 
3. Frozen CuttleFish – $ 295.49 million  or Rs 2353.34 crore 
4. Frozen Squid- $454.61 million or Rs 3593.75 crore 
5. Dried Fish- $384.05 million or Rs 3080.92 crore

Top main Export destination for Indian marine products (2022-23)

1. United States of America –  $2.63 billion  or Rs 20600.35 crore
2. China – $1.508 billion or Rs 11956.91 crore 
3. European Union -$ 1.26 billion  or Rs 10018.38 crore 
4. South East Asian countries – $ 1.19 billion  or Rs 9494.02 crore 

Contribution of Shrimp to Export and Challenges 

According to the Marine Products Export Development Authority (MPEDA), in 2022-23, the main export item was frozen shrimps.

India exported 711099 metric tonnes of frozen shrimp in 2023-23, worth $5.481 billion. Frozen shrimp contributed around 67% of total marine exports.

The major market for Indian frozen shrimp is the United States, which imported 2,75,662 tonnes, followed by China, which imported 1,45,743 tonnes. 

$2.4 billion worth of frozen shrimp were exported to the United States in 2022-23.

India accounts for around 40% of the US shrimp market. However, most shrimp exported to the United States is processed in Ecuador before being sent to America. 

The MPEDA plans to process the shrimp within India for export to the United States. It will not only add value to the product but will also fetch higher prices in the United States market.

Challenges before Shrimp export 

India is the second largest aquaculture shrimp producer after Ecuador. Andhra Pradesh accounts for around 70 per cent of the country’s aquaculture shrimp production.

• A recent media report in the US alleged the working conditions in the shrimp farms in Andhra Pradesh and the poor food safety standards adopted for shrimp exported to the US. A similar report about Thailand led to a sharp fall in the United States import of shrimp from Thailand.
• There is an oversupply of shrimp in the world market due to record production in Ecuador and India. This has led to a decline in shrimp prices in the key markets of the US and Europe.
• The US, Europe and China are facing economic problems, which has led to a decline in the purchasing power of these countries. 
• The Indian exporter is also facing tough competition from Ecuador, Vietnam and Indonesia in the US market.

Marine Products Export Development Authority (MPEDA)

The Marine Products Export Development Authority (MPEDA) is a statutory body established under the MPEDA Act, 1972.

It became functional on 20 April 1972. Its headquarters are in Kochi, Kerala.

MPEDA  was set up to promote the marine products industry and boost its exports from the country.

The Act empowers MPEDA to regulate marine product exports and take all necessary measures to ensure sustained, quality seafood exports from the country.