2. HISTORY Till 1960: Dried items like dried fish and dried shrimp. By 1961: Frozen items overtook dried items leading to a steady progress in export earnings (Technology/modernization came in). 1966: export of frozen and canned items registered a significant rise (Devaluation of Indian currency). Markets for Indian products also spread fast to developed countries from the traditional buyers in neighboring countries. 2
3. MARKET STRUCTURE Till 1960: Sri Lanka, Myanmar (formerly Burma), Singapore etc. By 1961: Japan, USA, Europe, Australia, etc. 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. Till 1976: USA was the principal buyer of frozen shrimp 3
4. MARKET STRUCTURE After 1977: Japan emerged as the principal buyer of the product, followed by the West European countries. Till 2002: Japan retained its position as the single largest buyer for our marine products accounting for about 31% in the total export value. 2002-03 & 2003-04: USA emerged as the single largest market for our marine products. 2004-05 & 2005-06: European Union collectively became the largest importer of Indian marine products. 4
5. MARKET STRUCTURE 2008-09: European Union (EU) = 32.6% China 14.8% Japan 14.6% USA 11.9% South East Asia 10% Middle East 5.5% Other Countries 10.6% Due to prevailing economic recession export to EU, USA and Japan declined 6.08%, 10.18% and 8.80% respectively All other countries increased their import of marine products from India during the year. 5
7. INDIA'S SEAFOOD RESOURCE Exported to more than 90 countries. India has one of longest coastline of 8118 Km. Global Share of India is 4.2% at 2nd 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. 7
8. INDIA'S SEAFOOD RESOURCE Employs 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. 8
10. 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. 10
11. EXPORT TREND OF MARINE PRODUCTS Q: Quantity in MT, V: Value Rs. Crore, $: US Dollar in Million 11
20. FACTS 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. 16
21. India - A Seafood Processing Hub 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. 17
22. Changing Trends 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 Pearl Spot fishes. 18
23. Tuna Fish 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. 19
26. Mud Crab is identified as best substitute of Shrimps.
27. By using the technology 1 lakhtonnes of Mud Crabs can be produced giving revenue of Rs. 2000 Crores.20
28. 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. 21
29. Ornamental Fish Most popular among Hobbyist. Used in Aquariums around the World. Major Exporters Singapore Hong Kong Malaysia Thailand Philippines Sri Lanka Taiwan Indonesia India. 22
30. Ornamental Fish 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 23
31. Vannamei Shrimps India mainly produces Black Tiger Shrimp (1.5 lactonnes). It has faced stiff competition from Chinese Vannamei Shrimps because It has low production cost, and therefore cheap. Resistant to virus diseases. 24
32. Vannamei Shrimps 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 lactonnes , Thailand 4.5 lactonnes, Indonesia 4 lactonnes and Vietnam 3.5 lactonnes and there annual production is rising. 25
33. Seafood supply chain in India Fisherman ➔ Commission Agent ➔ Supplier (Pre-processor) ➔ Exporter Price sharing pattern is as follows: 26
41. 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) 29
42. MPEDA 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. Headquartered – Kochi (Kerela) 30
44. ROLE OF MPEDA IN INDIAN AQUACULTURE MPEDA 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. 32
45. ROLE OF MPEDA IN INDIAN AQUACULTURE MPEDA acts as a liaison agency between various stake holders in shrimp/prawn culture. MPEDA implements projects for proving the techno-economic viability of culture of diversified variety of exportable fishes. MPEDA strives to ensure sustainability of aquaculture and make it environmentally friendly. 33
46. Plan Schemes of MPEDA Export production - Capture Fisheries Export production - Culture Fisheries Induction of New Technology and modernization of Processing Facilities Market Promotion 34
47. Services offered by MPEDA 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. 35
48. MARINE CAPTURE FISHERY Deep Sea Fishing In 1986 Government of India revised its Deep Sea Fishing Policy giving more stress to joint ventures in deep sea fishing. In 1991 Government of India further modified the deep fishing policy permitting: Long lease of fishing vessels Test fishing as prelude to joint venture 36
49. Conditions for foreign equity permitted New or second hand vessels can be acquired on lease. The vessels should be for non-shrimp resource. Deep sea fishing project can be registered under 100% EOU scheme. Test fishing may be done to establish techno-economic viability. Foreign collaboration involving foreign equity up to 51% is generally permitted. Foreign equity once invested is considered on par with Indian share holding. Foreign equity can be by way of fishing vessels also. Services of foreign crew can be availed. Mid sea bunkering is permitted . 37
50. MARINE CULTURE FISHERY AQUA CULTURE Aquaculture is the farming of freshwater and saltwater organisms such as finfish, molluscs, crustaceans and aquatic plants. Aquaculture wing was established in 1979 by MPEDA to promote aquaculture in coastal brackish water areas. Subsequently field offices were opened in different maritime states. At present there are 6 regional and 4 sub-regional centres extending technical assistance in the field. 38
51. ACTIVITIES PERFORMED Micro and macro level survey to identify suitable sites for farming Preparation of site specific project reports Technical advice on various aspects of farming. Training farmers/entrepreneurs in farming Arrange visit of farmers from one state to other state for learning different aspects of farming. Conduct workshop/seminar/symposium/farmers meets for the benefit of farmers/entrepreneurs. Promote eco friendly aquaculture 39
52. AQUA CULTURE Prawn Farm Procomplex, Vallarpadom,Cochin Increase in demand for the trained man power requirement The Authority has established a training facility at Vallarpadom, Cochin. Through this Project Complex, regular training programmes in shrimp culture, hatchery operation, design and construction of hatchery are offered to entrepreneurs as well as Govt. officials, personnel of financial institutions interested in supporting aquaculture 40
53. MPEDA's Shrimp hatcheries MPEDA has established two registered societies TASPARC and OSSPARC to run hatcheries in Andhra Pradesh and Orissa respectively. Orissa hatchery: 65 million seeds per annum Andhra Pradesh hatchery: 80 million seeds per annum. 41
54. Semi-intensive shrimp farm At Nellore with the assistance of Dept. of Bio-Technology Demonstrates the techno-economic viability of semi-intensive shrimp farming under Indian conditions with an average production of over 4 tonnes/ha/crop. Based on the experience, demonstrations are arranged in different places through the Regional/Sub-regional Centres. Two more demonstrations projects are under implementation with the assistance of DBT, one each at Salem in Tamil nadu and Alampur in West Bengal. 42
55. Aqua Culture in Andaman & Nicobar Islands A pilot project near Port Blair with the assistance of Dept. of Ocean Development Productiion of 2 tonnes per ha/crop A Project for brood stock transport is also under implementation with financial assistance from Dept. of Bio-technology in the A & N Islands. MPEDA also undertakes the work of techno-economic appraisal of aquaculture projects for various agencies. 43
56. Cage culture of fin fishes A pilot project for establishing an off-shore cage culture unit near Port Blair in A & N Islands has been initiated. MPEDA is advocating such aquaculture projects which are eco-friendly in different parts of the country. Satellite farming to enable large scale industrial houses to support small farmers with supply of essential inputs along with technical advice and buy -back of product at prevailing market rates. The MPEDA organised the aquaculture expositions 'INDAQUA' in 1993 and 1995 so as to highlight the achievements in the field of aquaculture and to make the practitioners and entrepreneurs aware of the latest trends, developments and experiences in aquaculture 44
57. VALUE ADDITION Adopting 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 45
58. Principles followed by HACCP Conduct a hazard analysis to identify hazards likely to occur. Identify the Critical Control Point (CCP) to determine a point, step or procedure in the production process Establish critical limits for each CCP by setting maximum or minimum parameters of factors 46
59. Principles followed by HACCP Monitor each CCP to ensure the process is under control at each CCP Establish corrective actions taken when monitoring shows deviations from established critical limits Establish verification procedures to ensure HACCP plans accomplish intended goal of safe product production Establish record-keeping and documentation procedures such as the HACCP plan, CCP monitoring, corrective actions and verification activities. 47
60. Steps by MPEDA regarding food and health concerns Product development for export: Research and development of new products Training in new technology and inviting overseas technical experts to India Quality improvement Imparting training to technologists of Indian seafood industryin quality control in overseas labs Entrusting special research projects on quality problems with National Research Institutes Monitoring of seafood quality in landing and pre-processingcenters. 48
61. Steps by MPEDA regarding food and health concerns Integrated development programme for upgrading seafoodquality by providing infrastructural facilities Evolving standards for compliance for export of fish andfishery products to various developed countries based onstandards / norms / regulations prescribed by such countries 49
62. MARKET PROMOTION Overseas market survey Data collection and maintenance of data Bank Assistance for market development Publicity through media and production of literature and films on trade promotion. Sponsoring of sales team / delegations. Invitation of overseas experts for export promotion visit to India. Organizing buyer-seller meets in overseas markets Participation in overseas Trade Fairs and Exhibition Exhibition & Trade Fairs within India. 50
63. FAIRS BY MPEDA India International Seafood Show (IISS) Biennial fares Distinctive position In order to popularise the concept of aquaculture and to exploit the resources in the sector, MPEDA organizes INDAQUA every alternate years. MPEDA organizes INDAQUARIA - the international ornamental aquatic event - every year. To showcase the infinite promise and potential of the Indian ornamental fish industry. To provide a platform for annual get together. An exciting platform for joint venture and business tie-ups. 51
64. NETWORK FOR FISH QUALITY MANAGEMENT AND SUSTAINABLE FISHING (NETFISH) A new mechanism with fishermens’ societies, federations, and other non-governmental organizations which works closely with the fishing community. MPEDA will utilize the services of experts, scientists, technologists, etc Other tasks include (a) Training to pre processing and processing workers (b) Training in HACCP (c) HACCP audit (d) Consultancy for the upgradation of processing plants (e) Consultancy for production of value added products (f) Certification of organic aqua products etc 52
65. INDIAN ORGANIC AQUACULTURE PROJECT (IOAP) MPEDA proposes to implement organic aquaculture in India by availing the consultancy and technical collaboration from the Swiss Import Promotion Programme (SIPPO), Zurich, Switzerland. MPEDA has signed a MoU with SIPPO on 11.1.2007 at Chennai during INDAQUA 2007 The Project intends to implement organic aquaculture as per the standards stipulated by Naturland, Germany, who is the certifying body for the product, initially in Kerala and Andhra Pradesh. INDOCERT is the inspection agency for the programme in India. 53
66. Exporters Subsidy Assistance by MPEDA Capture Fisheries Installation of insulated / Refrigerated Fish Hold = 30% of the cost to a maximum of Rs.5 lakh per owner of fishing vessel. Conversion of existing fishing vessels to Tuna long liners = 50% of the cost to a maximum of Rs.7.50 lakh. Constructing New Tuna Long Liners = 5% to Rs.10 lakh for 18-20 meter vessels and Rs.15 lakh for above 20 meter vessels Culture Fisheries Medium-scale hatcheries = @ 50% of the capital to a maximum of Rs.20.00 lakh per beneficiary / hatchery limited to 6 hatcheries only Establishment of Ornamental Fish Breeding Units = 50% of the cost to a maximum of Rs. 75,000 for Grade I unit, Rs. 2 lakh for Grade II unit and Rs 7.5 lakh for Grade III unit 54
67. Exporters Subsidy Assistance by MPEDA New Technology/Modernization Creating basic facilities for fish curing / drying / packing / storage for export Scheme – A : Setting up of dried fish handling / curing / drying facility (with solar system with LPG back up) = Maximum assistance shall be Rs.23.50 lakh per beneficiary @ 33⅓% of the actual cost incurred. Scheme – B: Setting up of dried fish packing and storage facility by dried fish processors / exporters registered with MPEDA = Maximum assistance shall be Rs.8.25 lakhper beneficiary @ 33⅓% of the actual cost incurred 55
68. Exporters Subsidy Assistance by MPEDA Market Promotion: Group Insurance Coverage for Workers Employed in the Pre-Processing and Processing plants The premium of the insurance will be paid by the employer, employee and MPEDA in a ratio of 50%, 25% and 25% The annual premium works out to Rs.200/- per worker. The present annual premium is Rs.200/- SEA FREIGHT ASSISTANCE for export of specified value added products to EU/USA/ Japan and other countries 56
69. FTP: Fish & Fishery Products Items permitted No Quantitative restrictions on export. Promotional measures Central assistance to States for development of critical infrastructure for export. Encouragements to State Governments for setting up Export Zones. Declaration of Towns of Export Excellence Market Access Initiative Schemes for encouraging increased marketing efforts by exporters/Brand promotion Schemes to promote the Concept of Total Quality Management. 57
70. FTP: Fish & Fishery Products 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. 58
71. 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. 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. 59
72. SEAI 150 processing facilities have received European Union approval from the existing 350 processing facilities in India through SEAI. The factories are located in 20 clusters along the East and West Coast of India. SEAI develop these clusters into international seafood processing hubs. 60
73. 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. 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. 61
74. SEAI has identified the areas for development and implement Research and Development of New Projects. Training in new technology and inviting overseas technical experts to India. Imparting overseas training to technologists of Indian Seafood Industry in quality control. Monitoring of Seafood Quality in landing and pre-processing centers. Upgrading seafood quality by providing infrastructural facilities like pre-processing centres and setting up of mini labs for quality assurance. Evolving standards for compliance for export of fish and fishery products to various developed countries based on standards /norms / regulations prescribed by such countries. 62
75. India International Sea 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). 63
76.
77. Use 4-Mil Poly Liners: Airlines hate leakers…so will your customers
78. “Wet” Ice: Don’t use regular ice. It melts & creates a huge mess
79. Chill Before Packing: Make sure the fish is 32°F – or a bit less – before it goes into the boxes
80. Gel Ice: Must be hard frozen & leak free / Use 2 X 1.5 lb gel packs per 50 lb box & 4 X 1.5 gel packs per 80 lb box / Put gel packs on both top and bottom of box
106. Freezers Enroute: Verify that freezers are available at every stop and point of plane change. Make sure they are adequate to take your shipment if need be.69
107.
108. Reliable: Unlike aircraft, “refer” trucks have reliable temperature control systems for either chilled or frozen freight
109. Speed: Can be surprisingly competitive with air depending on destination & when all stops, and potential delays are considered
110. Check with your Forwarder: Trucking may be right for you.70
111. 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. 71
112. Challenges 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. 72
113. State of the Fisherman Price taker: Price moves from the international market via the exporter. Risk bearer: He bears all fishing expenditures and assumes the risk of a poor catch. Export promotion agencies concentrate their activities on assisting exporters, leaving little development for fishermen. 73
114. State of the Fisherman Among 40 schemes listedby MPEDA one is targeted at fishermen 30% investment assistance max. cap of 50000 Highly unorganized, competition within, non-cooperation bound to disrupt self regulatory mechanism International standards include processing in the boats itself 74
115. Export 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 75
