India's thriving seafood exports: A deep dive into growth, trends, and market dynamics

Overview:

As per IBEF, India is the third-largest seafood-producing nation in the world, engaging 28 million Indian people in the industry. Andhra Pradesh is ranked top as the marine food-producing state that recorded 4.8 MTS products in 2021-22. Every state has its varieties of this product line demanded on national and international grounds. Apart from Andhra Pradesh, the product category is also being produced in Gujarat, Karnataka, Kerala, Maharashtra, Odisha, Tamil Nadu, West Bengal, etc.; basically, all the sea-facing eastern and western ghats of India.

Talking about the international market, the country comes under the top 5 Seafood Exporting Countries in the world. Around 17% of India’s total Agro-exports consist of seafood. CY2022 has recorded USD 7.9 bn worth of seafood Exports out of USD 52.4 bn of total Agricultural Product-Export that was 5.35% higher on a YoY basis. As per MPEDA, this seafood export is expected to reach around USD 14 bn by 2025.

As per BE Data, India’s Major Exports in CY2022 under the category were found as:

Crustaceans (under HSN 0306; including Shrimps and Prawns), Molluscs (under HSN 0307), Fresh Fish (under HSN 0302), Frozen Fish (under HSN 0303). Top Market: USA (USD 2.25 bn; 29.8% share); China (USD 1.43 bn; 19.1% share); Japan (USD 0.5 bn; 6.1% share); Vietnam (USD 0.4 bn; 5.5% share).

Types of Seafood:

Exports of Seafood have been categorized into 8 types. All the types of seafood are being exported in these 8 categories.?

Frozen Shrimp thrives to be the major export item for India’s seafood industry in both quantity and value as per the Ministry of Commerce & Industry. The biggest importers of Indian seafood are USA and China, which continue to do so. Frozen shrimp earned Rs 43,135.58 crore (USD 5481.63 million), accounting for a share of 40.98% in quantity and 67.72% of the total USD earnings. There was a 1.01% increase in the Rupee value of shrimp exports during the period.

Major categories exported under Crustaceans are Vannamei Shrimp, White Shrimp, Black Tiger, Flower Shrimp, Jinga Shrimp, Brown Shrimp, Kadal Shrimp, Kiddi Shrimp, Speckled Shrimp, Scampi, Coastal Mud Shrimp, and Scalloped Spiny Lobster.

Export Market of Seafoods:

India exports marine products to countries like the USA, China, EU, Southeast Asia, Japan & Middle East. In 2021-22, Indian seafood exports to the USA reached a total import value of US$ 3,371.66 million, representing a significant share of 37.56% in terms of dollar value. As the largest importer of Indian seafood, the USA maintained its position in both value and volume. Notably, exports to the US experienced impressive growth, with a volume increase of 27.63%, rupee value growth of 36.76%, and dollar revenue growth of 37.56%. The primary product shipped to the USA was frozen shrimp, indicating its popularity and demand in the American market.

India’s Seafood Export Destinations:

India’s Seafood Market:

India has solidified its position as a leading player in the global aquaculture and seafood production sector, securing the second spot worldwide. Not only that, it proudly holds the distinction of being the fourth largest seafood exporter on the international stage, with its marine product exports valued at nearly USD 7 billion. Currently, India caters to over 115 countries, establishing a widespread presence in the global seafood market.

There could be various reasons for the decline in seafood & Crustaceans exports from India in 2022 compared to the previous year 2021. Some possible factors could that could include.

1. Market Demand: Changes in global market demand for fish and crustaceans could have played a role. Fluctuations in consumer preferences, economic conditions, and trade policies of importing countries may have impacted the demand for Indian seafood exports.
2. Natural Factors: Environmental conditions, such as variations in fish populations, weather patterns, or natural disasters, could have impacted fishing activities and the availability of fish and crustaceans for export.
3. Competitiveness: Increased competition from other seafood-producing countries may have affected India's market share and export performance.

Favorable Market:

Export of Frozen Fish from India:

In 2021-22, India's total frozen fish production, including both marine and inland sectors, reached 16.24 million metric tonnes (MMT). The inland sector accounted for 12.12 MMT, while the marine sector contributed 4.12 MMT. During the previous year, 2020-21, approximately 66% of the potential marine fisheries and 51% of the potential inland fisheries were harnessed. Over the past decade, India has witnessed consistent growth in its marine product production. The total fish production has increased from 8.66 MMT in 2011-12 to 16.24 MMT in 2021-22, showcasing a notable expansion in the industry's output. This growth reflects the country's efforts to enhance its fisheries sector and capitalize on its abundant aquatic resources.

Export of Shrimp from India:

Frozen shrimp remained the major export item in terms of quantity and value. Frozen shrimp, which earned Rs 42,706.04 crore (USD 5,828.59 million), accounted for a share of 53.18 percent in quantity and 75.11 percent of the total dollar earnings. Shrimp exports during the period increased by 31.68 percent in USD value and 23.35 percent in quantity.

Export of Dried Fish from India:

Region-wise Summery of Seafood:

Conclusion:

India has demonstrated remarkable resilience and achievement in the face of challenges, particularly evident in its booming seafood exports to major markets such as the USA. This success is a testament to the nation's growing prominence in the international seafood trade, driven by a rich array of marine products, a proficient workforce, and modern processing and storage innovations.

The journey of achievement is equally reflected in India's remarkable progress in space exploration, as evidenced by its successful Lunar Mission, and its ground-breaking innovations in agricultural technologies.

As we move forward, it is evident that India's journey of progress and development is unwavering, promising a future where the nation's development and expertise continue to flourish on the global stage. Stay tuned to witness the evolution of a skilled and rapidly advancing nation that holds the promise of even greater accomplishments on the horizon.