Marine fisheries in India has steadily been losing out to inland aquaculture, in terms of fish production, but its relevance for exports has not diminished. Given that marine exports have not done too well in recent years, reports of marine export trade registering a record $2-billion mark in the first nine months of this year is significant. During this period, seafood exports have seen a 6.6 per cent growth in terms of quantity and nearly 19 per cent growth in value, that too in the face of an appreciating Rupee. The marine export business seems upbeat — and justifiably so — and hopes to touch the $2.5 billion mark by year-end. However, this laudable performance is not yet being driven by improved supply side response. Rather, it is the sharp rise in global demand, especially in major overseas markets like the US, European Union and Japan that is pushing prices and profitability up. On the domestic front, the main trigger for this growth came from the recently introduced Vannamei shrimp aquaculture as this variety of shrimp has a high demand in the global market. Furthermore, higher catches of squid have also helped boost exports.
That said, the fact remains that the marine exports industry suffers from some basic shortcomings that constrains export growth. To begin with, India’s marine export products basket is rather slim, comprising largely of shrimps, squids and cuttlefish. Several other exportable marine fish species, which are available in the Indian waters, albeit in the deeper seas, remain largely untapped. No doubt the availability of Vannamei shrimp has provided a new outlet for exports but there is tremendous competition in this segment of overseas market from other established exporters, notably Vietnam. Besides, exports depend on the volume of catches, which vary from year to year. This has been an exceptionally good year for squid landings, at Kollam, Kochi and Mangalore ports. Moreover, the country lacks a well-conceived deep sea fishing policy to harness the full potential of the Indian Ocean. As a result, much of the country’s vast exclusive economic zone (EEZ) remains underexploited. Though the participation of coastal fisherfolks in deep sea fishing is almost negligible, yet the concern for protection of their interests is coming in the way of harnessing fishing resources at deeper depths. This issue needs to be examined afresh to find a way out for making better use of our EEZ to augment and diversify export products basket.
India must also diversify its marine export market beyond the traditional markets of the EU, the US and Japan. China and some other small destinations are the recent additions to this list. The EU and the US, which together account for nearly half of India’s marine exports, are among the most difficult markets to cater to because of various kinds of conditions laid down by them from time to time. While the EU often imposes tough sanitary and phyto-sanitary curbs, including highly stringent standards of antibiotic and other residues, the US has for long been putting undue dumping duties on Indian shrimps. There is, therefore, urgent need for exploring new export destinations as well as improve the competitiveness of Indian exports worldwide.
