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CHAPTER-I

INTRODUCTION OF THE STUDY

Industry has a long history of its own. From time immemorial fisheries has been the chief occupation of the people living in the coastal area. The seafood exports from India mainly consist of prawns, squids, cuttle fish and small varieties of other fishes. Export is a vital factor in the economy of any country and plays an important role in international trading. Developing nations are always on the look out demand. India sea food products have become one of the most important export items always in high demand in the developed countries making them very important for the economic well being of the country. Marine sector has proved its importance in Indias total exports. It is one of the major non traditional products. The export of which is fastly growing. India has a vast coastal area, so the raw materials i.e., various kinds of fishes and crustaceans are available in plenty. The prominent buyers of India marine products are Japan, USA, China, EU and Middle East. Competition mainly comes from Taiwan, Hong Kong, Thailand and Indonesia. Indias export of fish and fish preparation include a wide range of variety of fish like shrimp, squids, cuttle fish, Tuna and sardine.

The high profitability of this export trade leads to increase exportation and declining natural resources and catch per effort. Intensive culture of prawns compensated the declining catch and maintained the increasing trend of export and earning in the sea food industry of India. Fishing is one of the oldest occupations in India. The fishing sector has a proud place in the national economy. The significance of this sector is too dimensional i.e., employment potential and export potential. The fishery sector has been an important source of foreign exchange. For being successful in the world of marine export adequate importance has to be given to the packaging, storage and transport because of the highly perishable nature of the commodity and also due to its value in the international market. Fish and edible oil marine product has also being the part of the diet of the coastal India. But with the advancement of HACCP made in the field of packaging, refrigeration, storage and transportation we have evolved ourselves into one of the global leaders pioneering into the world of marine exports. The sea food industry is focused on consumer demand for higher quality products. Sea food is experiencing growth in both specialty food restaurants and percentage of product approving on menus. The industry has emphasized fresh and frozen programmes and the operators need for value added products that can help reduce labour cost. Kerala, to be more accurate the cochin- Allapey coast has always been food fishing ground and because of the presence of sea

port, air port and other infra structure. Cochin has become home of large marine food establishment like Abad, Amal Gum etc. Seafood is any sea animal or plant that is served as food and eaten by humans. Seafoods include seawater animals, such as fish and shellfish (including molluscs and crustaceans). By extension in North America although not generally in the United Kingdom, the term seafood is also applied to similar animals from fresh water and all edible aquatic animals are collectively referred to as seafood. The harvesting of seafood is known as fishing and the cultivation and farming of seafood is known as aquaculture, mariculture, or in the case of fish, fish farming. The principal food fish species groups are Anchovy, Carp, Catfish, Cod, Eel, Cuttlefish, Herring, Salmon, Scud, Tilapia, Trout, Tuna and so on. The seafood industry is focused on consumer demand for higher quality products. Seafood is experiencing growth in both speciality - food restaurants and the percentage of product appearing on menus. The industry has emphasized fresh and frozen programs and the operators need for value added products that can help reduce labour cost. SEAFOOD FOR ALL AGES We often think seafood as grown up but recent findings suggest, it is important to have the benefits of omega-3 from fish and shellfish starting early in life. Seafood is consumed all over the world; it provides the worlds prime source of high-quality protein; 14-16% of the animal protein consumed world

wide; over one billion people rely on seafood as their primary source of animal protein. The Food Standards Agency recommends that we eat at least two portions of seafood per week, one of which should be oil rich. There are over 100 different types of seafood available around the coast of U.K. Oil-rich fish such as mackerel or herring are full of long chain Omega-3 oils, also found in every cell of the human body. These oils are vital for human biological functions especially brain functionality. Whitefish such as haddock and cod are very low in fat and calories which, combined with oily fish rich in Omega-3 such as Tuna and Salmon can help you to protect against coronary heart diseases. Shellfish are rich in zinc, which is essential for healthy skin and muscles. Heart health Doctors have known of strong links between fish and healthy hearts ever since they noticed that fish eating unit population in the Artic had low levels of heart diseases. Fish is thought to protect the heart because eating less saturated fat and more Omega-3 can help to lower the amount of cholesterol and triglycerides in the blood. Brain functionality

The human brain is 10-12% lipids, including the Omega-3 fat DHA. The older people can boost their brain power by eating more oily fish. Adding more DHA to the diet of children with attention-deficit hyperactivity disorder can reduce their behavioral problems and improve their reading skills, and better concentration.

PRESENT SCENARIO OF SEAFOOD EXPORT A new generation of full service seafood manufacturers has emerged vertically integrated, harvesting and processing companies. These supply specialty appetizers, encrusted, battered and breaded products, customized portioned products; precooked souse vide-styled portions and frozen offerings. In the past, many seasonal species were only seen on sushi menus and in higher end restaurants, but now turned up on casual=dining menus. Served very simply, these dishes present a visual and aromatic experience. A portioncontrolled product, such as portioned fish fillets with a static marinade, helps control waste. In addition, seafood company staff corporate chefs invest in their own product-development teams to follow the market closely and watch for new trends developed by the single-standing owner/operator businesses that lead the way. Randy code, foodservice sales manager, national accounts, R&D, Ocean Beauty Seafoods Inc. Settle, understands the need for value added food product. I have been experiencing more requests over this year that accentuate the need for high quality for sustainable sources of wild species, like salmon, halibut, and

cod in smaller proportion weights. The addition of familiar gourmet ingredients is necessary to increase value perception of the overall product and thus reduce labour for the end user.

CHAPTER -II

RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. Research may be defined as a scientific and systematic search for pertinent information on a specific topic. Advanced learner's dictionary of current English lays down the ling of research as "a careful investigation or inquiry especially through search for new facts in any branch of knowledge." Research is the pursuit of truth with the help of study, observation, comparison and experiment. Thus research as an aid to economic policy has its special significance in solving various operational and planning problems of business and industry. The scope of this venture is to make an effective study about the growth and development of Indian seafood industry, SECONDARY DATA The secondary data are those data which are secondary in nature and are mainly collected through company reports, magazines, web sites, journals etc.

TITLE OF THE STUDY "A Study on the Growth and Development of Indian Seafood industry OBJECTIVES OF THE STUDY To know about the different Marine products manufactured. To learn about the Functions of MPEDA its rules and procedures in the promotion of seafood exports. To study about the importance of packaging of marine products. To find out the problems faced by the seafood exporters. To identify the SWOT analysis of the Seafood Industry. TOOLS AND TECHNIQUES The tools and techniques which were used for this project were bar diagram and Pie diagram. SWOT analysis was also used to analyse the strength, weakness, opportunities, and threats of Sea food exports.

The statistical tools used in the study are Trend projection method, Trend percentage method, Coefficient of variation, Mean and Linear Growth Rate, Tables and charts are used to interpret the data collected. The formula to calculate mean is given below

Mean = x ____ N
The formula to calculate Standard Deviation is given below

S D = (x-x)

The formula to calculate co-efficient of variation is given below C.V = x100 S.D X

Where S.D = Standard deviation of the variable considered. X = Mean of the variable The formula to calculate Linear Growth Rate is given below. L.G.R = B Y x 100

Where B = Slope Coefficient of Linear regression equation.

Y = Mean of the variable The formula to calculate the Trend Projection is given below Trend Projection = Yt = a + bt Where Yt is the Variable considered per analysis

a, b = Parameter to be estimated. t = Time period varying from 1 tilln.


PERIOD OF STUDY Data collected for analysis taken from the year 2004-2008. LIMITATIONS OF THE STUDY 1. Data collection is of secondary nature, so there may be a chance for bias. The limitation of this type of data may form the limitation of the study. 2. As the period of study is limited, extensive data collection was not possible. 3. Financial Constraints is another limitation of the study. 4. Since the data for the study has been collected for a given period, which are aggregated in nature. This may lead to inclusion of aggregation error.

CHAPTER SCHEME Chapter I Chapter II Chapter III Chapter IV Introduction of the Study Research Methodology Seafood - An Overview MPEDA Its role &functions , Importance of Packing, Problems faced by sea food exporters and SWOT analysis Chapter V Chapter VI Export procedure & documentation Analysis & Interpretation

Chapter VII Findings, suggestions & conclusion

CHAPTER-III

SEAFOOD -AN OVERVIEW


PRODUCT PROFILE 1) SHRIMPS

Raw material Scientific Names

Raw Head on Shrimps Penaeus indicus , Metapenaeus dobsoni Metapenaeus affinis, Parapenaeopsis stylifera , Metapenaeus monoceros , Macrobrachium rosenbergii , Penaeus monodon , Arrestees alcockii , Solenocera spp.

Harvest Area Mode of Procurement Finished product

West coast, brackish water and culture farms of Kerala. Directly from landing centers and farms. Raw Block Frozen Head On, Head Less Fan Tail Round, Peeled and Deveined Shrimps.

Packaging Shelf life Additives/Ingredients used Mode of distribution Intended Use Intended Consumer Labelling Instructions

According to buyers specifications. Two years from the date of production if Stored at -180 C or below. None. In refrigerated containers at or below minus180 C. To be fully cooked before consumption. General population/ processors. As per national regulation and buyers specifications.

2) CUTTLE FISH/SQUID/OCTOPUS

Raw material Scientific Names Harvest Area Mode of Procurement Finished product

: : : : :

Raw Cuttle fish / Squid / Octopus whole. Sepia spp., Loligo spp, Octopus spp. Marine, West & East coast of Kerala Directly from landing center. Raw Block Frozen Cuttlefish / Squid / Octopus whole, whole cleaned, fillets, tubes, tentacles, rings and cuttle fish roe.

Packaging Shelf life Additives/Ingredients used Mode Distribution Intended use Intended Consumer Labeling Instructions

: : : : : : :

According to buyers specifications. Two years from the date of production if stored below 180 C. Salt In refrigerated containers at or below -180 C To be fully cooked before consumption. General population/ reprocessing units As per national regulation and buyers specifications.

3) NON HISTAMINE FORMING FISHES

Raw material Scientific Names

: :

Raw Head On Non-Scombroid fishes Lutjanus malabaricus (red snapper), Pampus Argenteus (Pomfret) , Trichiurus lepturus ( ribbon Fish), Epinepheleus malabaricus (Reef cod), any other non histamine forming fish and all fresh water fishes.

Harvest Area Mode of Procurement Finished Product

: : :

West coast, brackish water and culture farms of Kerala. Directly from landing center and farms. Raw IF / block frozen non histamine forming Fishes - whole gutted, and gilled gutted, scale off skin on fillets & fillets.

Packaging

According to buyers specifications

Shelf life

Two years from the date of production if stored at -180 C or below. : : : : : None In refrigerated containers at or below -180 C. To be fully cooked before consumption. General population/ Re- processors. As per national regulation and buyers specifications.

Additives/Ingredients used Mode of Distribution Intended Use Intended Consumer Labeling Instructions

4) HISTAMINE FORMING FISHES

Raw material Scientific Names

: :

Raw Fish whole Rastrelliger kanagurta (Mackerel), Sardinella longiceps (Sardine), Scomberomorus commersoni (Seer Fish), Thunnus albacares (Tuna), Anchoviella Commersonii (Anchovy).

Harvest Area

West coast, brackish water and culture of Kerala. Directly from landing center and farms. Raw IF / block frozen scombroid fishes whole, whole gutted, and gilled gutted, scale off skin on fillets & fillets.

farms

Mode of Procurement : Finished Product :

Packaging

According to buyers specifications.

Shelf life Additives/Ingredients used Mode of Distribution Intended Use Intended Consumer Labeling Instructions

: : : : : :

Two years from the date of production if stored at -180 C or below. None In refrigerated containers at or below180C. To be fully cooked before consumption General population/Processors As per national regulation and buyers Specifications.

There are over 31,000 species of fish, making them the most diverse group of vertebrates. However, only a small number of the total species are considered food fish and commonly eaten. The principal food fish species groups are: PERISHABILITY Fish is a highly perishable product. The Fishy smell of dead fish is due to the breakdown of amino acids into biogenic amines and ammonia. Live food fish are often transported in tanks at high expense for an international market that prefers its seafood killed immediately before it is cooked. Delivery of live fish without water is also being exported. While some seafood restaurants keep live fish in aquaria for display purposes or for cultural beliefs, the majority of live fish are kept for dining customers. The live food fish trade in Hong Kong, for example is estimated to have driven imports of live food fish to more than

15,000 tonnes in 2000. Worldwide sales that year were estimated at US$ 400 million, according to the World Resources Institute. If the cool chain has not been adhered to correctly, food products generally decay and become harmful before the validity date printed on the package. As the potential harm for a consumer when eating rotten fish is much larger than for example with dairy products, the U.S. Food and Drug Administration (FDA) has introduced regulation in the USA requiring the use of Time Temperature Indicators such as OnVu on certain fresh chilled seafood products.

PRESERVATION

Fresh fish is a highly perishable food product, so it must be eaten promptly or discarded; it can be kept for only a short time. In many countries, fresh fish are filleted and displayed for sale on a bed of crushed ice or refrigerated

. Fresh fish is most commonly found near bodies of water, but the advent of refrigerated train and truck transportation has made fresh fish more widely available inland. Long term preservation of fish is accomplished in a variety of ways. The oldest and still most widely used techniques are drying and salting. Desiccation (complete drying) is commonly used to preserve fish such as cod. Partial drying and salting is popular for the preservation of fish like herring and mackerel. Fish such as Salmon, Tuna and herring are cooked and canned. Most fish are filleted prior to canning, but small fish (e.g. sardines) are only decapitated and gutted prior to canning. CONSUMPTION Seafood is consumed all over the world; it provides the world's prime source of high-quality protein : 1416% of the animal protein consumed world-wide; over one billion people rely on seafood as their primary source of animal protein. Fish is among the most common food allergens. a) Australia b) Iceland c) Japan d) New Zealand e) Portugal

are the greatest consumers of sea food per capita in the world. The Food Standards Agency recommends that we eat at least two portions of seafood per week, one of which should be oil-rich. There are over 100 different types of seafood available around the coast of the UK. Oil-rich fish such as mackerel or herring are full of long chain Omega 3 oils, also found in every cell of the human body. These oils are vital for human biological functions especially brain functionality. Whitefish such as haddock and cod are very low in fat and calories which, combined with oily fish rich in Omega-3 such as mackerel, sardines, fresh tuna, salmon and trout can help to protect us against coronary heart disease , as well as helping to develop strong bones and teeth. Shell fish are particularly rich in zinc, which is essential for healthy skin and muscles and fertility. Casanova reputedly ate 50 oysters a day.

A GENERAL OVERVIEW
Sea food production has steadily increased and seafood have become familiar and appreciated all around the world. Even in regions located far from the sea for many years. The increase of production was due to better catching techniques, bigger boats and gears and to the exploitation of new fishing grounds. While sea food consumption in many nations was once largely dependent on locally captured species, the development of freezing and rapid transport by rail, truck, and air have made a variety of sea foods available throughout developed nations. Fresh salmon often is as readily available in areas distant from the ocean as in locations where the fish are captured.

SEAFOOD INDUSTRY Seafood industry is growing at a tremendous pace which is reflected in the growth in exportation of fish and seafood products. There is also a consistent pattern of growth in value- added fish and seafood products of export. The processing and marketing of fish harvested from the wild account the majority of the industrys products. However, the global seafood sector is undergoing significant changes as pressures converge from diminishing supply, increasing demand, environmental changes and regulations, and geopolitical events.

SEAFOOD PRODUCTION - Seafood when produced for not any commercial purpose then it is known as Fishing. - While farming of fresh water and saltwater organisms. - Mariculture refers to aquaculture practiced in marine environments. Aquaculture production is the fastest growing primary sector at present, and growth is expected to continue maintaining growth in fisheries production overall, albeit it at a much slower rate. - Particular kinds of aquaculture include aquaculture (the production of kelp/seaweed and other algae); fish farming; shrimp farming, shellfish farming, and the growing of cultured pearls.

SEAFOOD Seafood consists of an extensive variety and sea weed which are served as a delicacy or is regarded as suitable for the purpose of eating.

Seafood usually comprise mostly of seawater animals, such as fish and shellfish (including mollusks and crustaceans). But in many parts of the term seafood is also used collectively to refer to animals from fresh water and as also any other kind of edible aquatic animals. This category makes up the bulk of the human food that comes from the waters of the world. Under this classification edible seaweed is also included, though it is specifically termed as sea vegetables. TYPES OF SEAFOOD Seafood is categorized under three main classes: Fish, Shellfish and Roe. Fish is any non-tetrapod chordate. i.e., an animal with a backbone, that has gills throughout life and has limbs if any, in the shape of fins. Few of the fishes which are regarded as edible are anchovy. Bluefish, Catfish, Eel, Flounder, Grouper, Herring Kingfish, John Dory. Lingcod. Monkfish Orange Roughy, Pomfret, Salmon, Tilapia, Tuna, Wahoo, etc. Shellfish are aquatic invertebrates used as food: molluses, crustaceans, and echinoderms. Both saltwater and freshwater invertebrates are considered shellfish. Molluses commonly used as food include the clam mussel, oyster, winkle, and scallop. Few crustaceans commonly eaten are the shrimp. Prawn, lobster, crayfish, and crab. Roe is the fully ripe egg masses of fish and certain marine animals, such as sea urchin, shrimp and scallop. As a seafood it is used both

as a cooked ingredient in many dishes and as a raw ingredient. Caviar is a name for processed, salted roe consumed as a delicacy. Other forms include ikura (salmon Roe). Kazunoko (Herring Roe). Lumpfish Roe. Masago (Capelin Roe). Shad Roe. Tobiko (FlyingFish Roe).etc. PROCESSING OF SEAFOOD Several socio-economic factors including urbanization, women going out to work and changes in family structures, have contributed to major modification in the demand for food products. The concentration of people in cities, as it increases the time spent on transport between home and working places, has drastically modified their time utilization schedule. The greater involvement of housewives in professional activities has had major effects to improve households income, and to reduce the time available for traditional home tasks including cooking. This factor has boosted the demand for processed food products including processed variety of seafood. The demand generation is reflected in an increased sale of fillets, steaks, fried mixed fish, and small sized fish at the expenses of whole larger fish. Till recently processing of seafood products depended on very simple methods, primarily on the knifes and salt and therefore, fishermen had to go fishing with salt on the boats. As a result, the qualities and the quantities of the catches were usually poor. It often happened that the seafood would get rotten before reaching consumers in cities due to backward storage facilities. However, with the emergence of modern processing techniques, these former salted products have been replaced by

frozen or cold stored products: the big package by small package, and the glass container by the soft tin container. The development of processed convenience seafood has followed the trend of modernized kitchens and it has also diversified the offer of seafood. For instance from a yellow fin tuna one can have a variety of canned tuna salads (Mexican, American, Nicioise, etc.) canned tuna in brine or in oil, frozen steaks, fresh loin, sashimi and others. A multi-variety processing system has been formulated in which fish, shrimp, mussels and algae are the main stored products. Activities of seafood processing include cold storing, freeing, drying, smoking, canning etc. The major types of processed products are categorized as follows: Frozen Products Fried Products Smoked Products Canned Products Surimi Products Fish Meal Products made by fish oil and fish liver Additives and Seasoning products Medicines Alga Glue

Art Craft ( Pearl)

QUALITY ASSURANCE OF SEAFOOD PROCESSING UNITS To ensure the quality of seafood, the processing enterprise in India has been strictly instructed to follow the international quality management systems, such as HACCP created by Food and Drug Administration (FDA) and the National Oceanic and Atmospheric Administration (NOAA). The Seafood Quality Management (Criteria by Canadian Fishery and Marine Ministry and the related regulations by the European Union. PROCESSED SEAFOOD INDUSTRY IN THE INDIAN CONTEXT Indias seafood industry is one of our biggest foreign exchange earners. Its turnover is around 9 billion dollars. Shrimps and lobsters rank first among India seafood product which has great potential as an export commodity. It is highly in demand in the international market. There are

also some value added products which are useful for export and also are quite popular in the domestic market. Surimi is mined flesh of deboned fish used in fish sausages, fish cake etc. Most of Indian exports have gone to Japan, followed by the United Arab Emirates, USA and EU. However, Southeast Asian countries, such as, Thailand, Singapore, China (Hong Kong SAR) and Malaysia are also important markets for Indian seafood. The increase in exports has mainly been stimulated by higher demand in the Japanese market, but also USA and the United Arab Emirates import more fish from India. The EU has been a more unstable market, as imports from India have fluctuated, but after years of decline, the exports here seemed to be on the rise again. From being a country where no imports were allowed, imports quickly increased when the borders were opened, though the level of imports is still very low, Indias imports consist primarily of fishmeal. The one other product India has been importing is hilsa from Bangladesh. HEALTH BENEFITS OF SEAFOOD The importance of seafood in the human diet varies greatly around the world. The Japanese most of all rely on seafood for their animal protein. Japan has a fishing fleet that travels far and wide. The Japanese also purchase seafood from other nations and have a highly developed aquaculture industry. The popularity of seafood has increased in recent years because it is seen as being a healthy source of food in many seafood category. Other species, such as halibut, are very low in fat, so they are popular with people who want to limit their daily fat intake. Cold water, deep-sea fish are particularly high in omega-3 fatty acids that help protect

against many diseases such as cancer, arthritis, high blood pressure, strokes and heart disease.

CHAPTER-IV MARINE PRODUCTS EXPORT DEVELOPMENT AUTHORITY (MPEDA)


THE ROLE OF MPEDA FOR THE PROMOTION OF SEAFOOD EXPORTS India blessed with a long coastline and abundant fishery resources has emerged as one of the worlds foremost seafood suppliers in terms of both quantity and quality shipping a diversified mix of products to more than 70 countries. And the Marine products Export Development Authority in 1972 for the promotion of seafood exports has long helped lead the way forward. But promotion isnt all the Authority does not by a long shot MPEDAs comprehensive role also covers overseeing fisheries of all kinds specifying standards for processing as well as engaging in marketing and training activities for various segments of the Industry. Further more developments measures such as putting up fish landing platforms, modernization of plant facilities and assuring quality control standards. Shrimp, Squid, Cuttlefish, Cryster, Lobster and Shark etc varieties of Seafood to make happy gourmets all over the world. India has them but having them do not make them the automatic choice. To win over a gourmets India Seafoods have to match the most exacting standards of the world and even meet the personal reference.

VALUE ADDITION Value addition gives the consumer products a step closer to his meal. Moreover he gets the parts of his choice at the exact weight measurements. Realizing the importance of value addition in exports MPEDA has been concentrating on the development of diversified value added seafood products. It introduced new technology and encouraged seafood processors to adopt consumer packaging. The efforts have proved to be fruitful as the country has expanded its overseas market and achieved higher market value realization. AQUACULTURE MPEDA promotes export- oriented aquaculture. As a result shrimp aquaculture picked up in a big way and presently contributes about 52 % by volume and 75 % by value of the shrimp exports from the country. To strengthen the raw material base for export market MPEDA is also making serious attempt to promote aqua culture production of Scampy, Crab, Lobsters, Molluscs and Fin fishes. India has vast potential for mariculture, coastal and land based aqua culture and inland aquaculture. The utilization of the vast potential, so far is only marginal. Out of 11, 90,900 hectors of coastal land available in the country only 12.5 % is put into use for aquaculture. Hence tremendous scope for aquaculture development and MPEDA is committed to take aquaculture to new vistas by extending assistance for diversified aquaculture in the country.

TRAINING AND EDUCATION Under the scheme 'Integrated Development Programme for Seafood Quality and Extension Services, MPEDA organizes demonstration-cum-training programmers for fishermen and processing workers with audio visual aids. Folders, brochures and booklets are prepared in English and regional languages. DEVELOPMENTAL ACTIVITIES For the modernisation of Sea food processing units, the Development section of MPEDA extents assistance. MARKETING SERVICES MPEDA compiles and disseminates trade enquiries received from overseas buyers among exporters. In association with concerned agencies it sorts out trade disputes. It compiles and disseminates information about reefer space requirements for shipment of frozen cargo and liaise with shipping companies and airlines to meet the demands of the industry. It liaise with the government for conservation measures of over exploited resources like shrimps, lobsters, sea cucumbers, sea weeds, sea shells etc. Marketing expertise is shared with exporters and those involved in fishing industry. MPEDA compiles and disseminates trade enquiries received from overseas buyers among exporters. In association with concerned agencies it sorts out trade disputes. It compiles and disseminates information about reefer space requirements for shipment of frozen cargo and liaise with shipping companies and airlines to meet the demands of the industry. It liaise with the government for conservation measures of over exploited resources like shrimps, lobsters, sea

cucumbers, sea weeds, sea shells etc. Marketing expertise is shared with exporters and those involved in fishing industry. QUALITY CONTROL MPEDA ensures the highest standards for seafood's exported from India. It works in close association with Export Inspection Council of India and other Indian and International quality control organizations. Assistance is given to registered processors to set up quality control laboratories and modern pre-processing plants throughout the country to meet the ISO 9000 quality standards. The HACCP cell in MPEDA offers advise on matters connected with EC Directives. APPRAISAL AND INVESTMENT MPEDA advises Government of India on matters connected with deep sea fishing. It undertakes techno-economic and financial appraisal of projects for production of value added marine products. Entrepreneurs and professionals get pre investment advices from MPEDA. INTERNATIONAL CO-OPERATION & MARKET PROMOTION MPEDA co-ordinates the visit of delegates from other countries or from international bodies like FAO, INFOFISH, UNDP, World Bank etc. MPEDA participates in specialized international food and trade fairs, organizes buyer-seller meets in major seafood markets overseas and sponsors visit of Indian delegates and individual sales teams to foreign markets. MPEDA participates in specialized international food and trade fairs, organizes buyer-

seller meets in major seafood markets overseas and sponsors visit of Indian delegates and individual sales teams to foreign markets. OVERSEAS TRADE PROMOTION OFFICES MPEDA has Overseas Trade Promotion Offices in Tokyo and New York. They ensure hassle free trade, liaising with government agencies, trade missions, seafood trade and industry associations and organising direct market promotion activities. In Europe, in Brussels, the India Trade Centre promotes seafood trade interests. TRADE FAIR The prestigious biennial India seafood Trade Fair organized by MPEDA brings overseas buyers, sellers and other interested sectors of the industry under one umbrella. EXPORT STATISTICS AND MARKET RESEARCH MPEDA collects and compiles statistics of marine products exported through various ports in India. It monitors the overseas market situations and exchange rate fluctuations. The details are published in the weekly bulletin PRIME. Every month MPEDA collects, compiles and analyses export data from all processing plants. Port-wise, grade-wise/variety-wise, information is available. Work Programme of MPEDA includes

Registration of infrastructural facilities for seafood export trade Collection and dissemination of trade information

Promotion of Indian marine products in overseas markets by organizing joint and direct participation in overseas fairs and international seafood fairs in India Implementation of development schemes vital to the industry by extending financial assistance for purchase of insulated fish boxes, improvement of peeling sheds, establishment of captive peeling sheds, modernization of seafood industry to upgrade the processing machinery, installation of IQF machinery, generator sets, flake ice making machineries, quality control laboratory, etc. Promotion of aquaculture for augmenting export production Promotion of deep sea fishing projects through test fishing, joint venture and equity participation and installation of equipments to increase the efficiency of fishing Financial and related activities

STRUCTURE AND ACTIVITIES MPEDA functions under the Ministry of Commerce and Industry, Government of India and acts as a nodal agency coordinating with different Central and State Governments establishments engaged in fishery production and allied activities. The development schemes of the authority are implemented under four major heads: 1. Export Production - Capture Fisheries 2. Export Production - Culture Fisheries 3. Induction of New Technology and Modernization of Processing Facilities

4. Market Promotion With HQ at Cochin, the Authority has established field offices in all the maritime states of India to implement the various promotional schemes. The Authority maintains two overseas Trade Promotion Offices in New York (U.S.A.) and Tokyo (Japan) to promote Indian seafood and a Trade Promotion Office at New Delhi to liaise with Central Ministries. The Adviser, Agriculture & Marine Products Division of the Indian Trade Centre, Brussels (under the Ministry of Commerce and Industry) assists MPEDA in its trade promotion activities in Europe and liaises with the European countries. Six regional offices at Mumbai, Kolkata, Cochin, Chennai, Vizag and Veraval and five sub-regional offices at Kollam, Mangalore, Tuticorin, Goa and Bhubaneswar are functioning as field offices for implementation of various developmental activities of the Authority besides engaging themselves in the export promotion of marine products by providing guidance and assistance to the processing industry and the export trade. The objectives of the Overseas Trade Promotion Offices are to promote seafood imports into the respective countries by liaising with Indian exporters as well as overseas importers, developing contacts with government agencies / officials, to remove identified constraints, promote the image of Indian products through publicity campaigns, identify markets for new products, create awareness on the capabilities of Indian processing, packaging, quality inspection procedures etc. and also to identify suitable joint venture partners for deep sea fishing, aquaculture projects, processing and marketing value-added products etc.

OBJECTIVES OF MPEDA Conservation and management of fishery resource. Promotion of commercial shrimp farming Promotion of commercially viable, eco-friendly aquaculture. Imparting grass root and broad - spectrum development training with special reference to quality control, processing and marketing. Formulation and supervision of quality guidelines and standards. Registration of exporters and processing plans. Registration of marine products exports. Promotion of joint venture in deep sea fishing aquaculture and value added products. Regulation of marine products exports. Dissemination of real time market intelligence. Assistance to industry in areas of export promotion and import essential raw materials. Organizing international buyer seller meets, trade promotions, facilitating the participation of Indian seafood delegates on trade fairs overseas.

PARTICULARS OF ITS ORGANIZATION, FUNCTIONS AND DUTIES


Organization chart offices- MPEDA Powers and duties of its officers and employees. Procedure followed in the decision making process including channels of supervision and accessibility. Norms set by for the discharge of its function. Rules, regulations, instructions, manuals and records, held by it or under its control or used by its employees for discharging its functions. Statement of the categories of documents that are held by it or under its control. Particulars of any arrangement that exists for consultation with, or representation by, the members of the Public in relation to the formulation of its policy or implementation thereof. Statement of Boards, Councils, Committees and other bodies consisting of two or more persons constitutes as its part or for the purpose of its advice, and as to whether meetings of those Boards, Councils, Committees and other bodies are open to the public or the minutes of such meeting are accessible for public. A directory of its officers and employees. The monthly remuneration received by each or its officers and employees, including the system of computerization as provided in its regulations. The budget allocated to each of its agency, indicating the particulars of all plans, proposed expenditure and reports on disbursements made. The manner or execution of subsidy programs, including the amounts allocated and the details of beneficiaries of such programs. The particulars of concessions, permits or authorization granted by it.

Details in respect or the information available to or held by it, reduced in an electronic form. Particulars of facilities available to citizens for obtaining information including the working hours or library or reading room, if maintained by public. Names, designations and other particulars of the Public Information Officers. Other information as may be prescribed.

ROLE OF PACKAGING IN MARINE FOOD PRODUCTS


The fishing industry has made leap and bounds during the last two decades in India and this has vastly enhanced the scope of export of marine delicacies from India. India today stands tall among the world leaders in the field of sea food exports such as china, Japan, Norway and Indonesia. Marine products such as cuttle fish, whole cleaned fish, shrimp, are of great demand in the European as well as the American markets. These marine products are found in abundance along the warm and tropical Indian coast, thus giving the marine food export industry vast potential, which has not yet been fully exploited. Marine food product is highly perishable commodity and therefore proper packaging and storage plays a vital role in the export of marine products. Modern packaging concepts that emerged with the advancement in the field of science and technology has great improved the self life and quality of sea food. Packaging is an integral part of production, distribution, and an important tool in marketing. It is also a means of prevention from spoilage, damage or loss due to external causes. In the modern day where commerce has reached the zenith of competition. In a world where competition arise like raging thunder, value addition and making the product attractive and pleasing to the eye plays a very vital role and substantial role in the making of a true market leader. Packaging plays a very important role in making a product good. It improves the self life of a product as in the case with sea food export, which is the current matter of study in details.

There are various other advantages of packaging; they must be listed down as follows. MAKES A PRODUCT ATTRACTIVE Product must be packed according to the market thus enabling the manufacturer to get maximum benefits along with customer satisfaction. Packaging plays a vital role in establishing a brand name and brand logo and also in product identification. i.e., if bar coding is implemented accordance with the international standard. Good quality ensures in packaging results in minimizing the loss and spoilage during transportation and packaging. Proper packaging also ensures quantity and quality of the product and as a result there is no variation in the quantity and quality at the time of packaging and at the time of purchase by the customer thus assuring maximum customer satisfaction.

FUNCTION OF PACKAGES
Packages today are used for a variety of purposes. Generally, package function is classified into four groups. They are: 1. Containment 2. Protection 3. Utility 4. Communication CONTAINMENT The original function of packaging was simply to contain the product in an enclosed volume. Containment facilitated handling, storage and transportation. Containment is an important function of packaging today. Although it is often a function taken for granted. Other than physical strength and closure requirement, simple containment places few demands on packaging materials, packaging to final use. PROTECTION Aquatic product must be protected from physical damage, micro organisms or chemical contamination, decomposition, insects and rodents, dehydration, and other damaging effects. Particular product will determine the type and extent of protection required.

Although often neglected, protecting the environment from the product is an important aspect of packaging. When packaging poisons, radioactive materials, or other dangerous materials, protection of the environment and people coming in contact with the packaging are self-evident. Packages for aquatic products often do not consider protection of the environment from the product. UTILITY Packages should perform several services. They should ease handling, transportation, storage, marketing and use of a product. Product orientation in packages, Ease of identification, pricing, displaying in retail outlets, dispensing and package disposal; design of the packages for secondary use; and many other factors are all package utility characteristics. Utility has two basic factors. First, packages may assist the user in a functionally efficient or they may do some thing for the product. This fact is typical of packages used in industrial settings. Often this package is used in industrial settings. Convenience usually most prevalent at the consumer level. Be bag packages, tear tapes, non-drip spots and of caps are of few of the conveniences expect the consumer, although the processors of aquatic products have worked toward convenience packages much more remains to be done.

COMMUNICATION Todays competitive markets require the package communicate with the potential purchaser without the aid of a sales person. The package must attract, hold the consumer attention long enough to trigger a sale. A home maker spends about 27 min shopping, in a super market per trip and selects 14 items out of a possible 6300 items. Thus getting the shoppers attention is extremely important to making sales. Packages are legally required to display company information. The product net weight and ingredients are two examples. Other information such as nutritional content may be given as sales reasons or as a means of educating consumers. Information about the package and how to often increase sales, directions on how to open a closed package, how to use special small enclosures and related information help improve convenience. Information on how to use the product is conveyed on the package. Items such as number of servings per container, how to prepare the product, suggestions for the new recipes that use the product, periodical deals or offers, or product guarantees may be included of the package to assist the consumers. Official offers on the packages, such as giving free books when the consumer send in a number of purchase sales, are widely used sales induces. The inclusion of small prices in packages is a widely used sales technique Once the package has attracted attention and provided sufficient information and appeal, either

technically or emotionally to initiate a sale it must provide an experience that will induce repeat sales. The package must be convenient, it must look good at home or on the table, it must have some unique characteristic, or it must have an attractive emotional appeal to motivate repeat sales. Repeat sales are generally the source of the greatest profits. QUALITY POLICY: The ultimate goal of an exporter is to process and deliver product of highest quality standards as per the requirements of the customers. The basic concept of the quality of sea food preservation in wholesome and naturalness. The company intends to achieve these objectives by utilizing appropriate methodology from sourcing of raw materials to overseas delivery of the product by inculcating a total quality management culture in its unit. The quality control division is headed up by a quality controller. The activities include a drawing up of quality plan, test schedule, inspection of purchased raw materials in process and final inspection and collaboration of all measuring equipments and gauges. The in house laboratory test covers micro biologist quality assessment or raw materials, finished goods, ingredients, water and ice. The quality controller assist in the investigation of non conformities and customer complaints if any monitoring of general plant sanitation and personal hygiene is also the responsibility of the quality controller.

STEPS TAKEN FOR QUALITY CONTROL: For calculating the quality of marine products the following steps must be taken in to account by the company:1. General appearance and odour: There must be characteristically smell and appearance for each marine product. It must be checked before exporting. If there is any difference in the smell and appearance it must be rejected. 2. Dehydration; The exporter wants to conform the water content of each marine product because there must be characteristically water content for each seafood. 3. Discoloration: The marine products have a natural color. If there is yellow or pink color for the product it is not used for export purposes. 4. Deterioration: If there is any decomposition because of bacterial action such products are not qualified for exporting. So the company will conform this.

5. Black spot: Appearance is very important for the exporting products. If there is any spot, it will affect the appearance due to enzymatic reaction in fish.

6. Broken, Damaged, Bruised pieces: If there any broken or damage or bruised pieces the marine products are disqualified 7. Legs, vein, loose, shells etc: The product must be carefully handled. After removing all wasteful parts the products are exporting. But if there are any legs, loose, shells, veins are noticed in the exportable products its will be disqualified. 8. Texture: There must be grade for each product. The standard score is two and there must be medium stiffness for each product. 9. Temperature: There must be minimum temperature for each raw material accepted products usually it is 00c to below 50c. The temperature be <180c for the products meant for export after freezing.

PROBLEMS FACEDBY INDIAN SEAFOOD EXPORTERS

Though Indian seafood export has increased, there are several problems, which come in the way of India achieving its full potential on export of marine and seafood factors. According to industry sources, there are several problems that come in the way of India achieving its full potential in export of marine and seafood products. The problems faced by industry are: The new GSP tariff Panic caused by EEC rejection Infrastructure for fishery sector Lack of well equipped laboratories Fluctuations in Foreign exchange rate 1. THE NEW GSP TARIFF: Exporters are faced with a serious problem, which is likely to come up with the European Commission relating to the scheme of GSP, which could pave way to stop Indias exports. The industry is worried about the possible serious negative consequences of this proposal on the products exported from the company to EEC.

A brief overview of the proposal and its impact on the import duties applicable in the IEC markets are: A great number of supplying countries do and will still enjoy total exemption, or great reduction of import duties. Least developed countries like Bangladesh 0% duty Countries like Africa 0% duty Drug fighting countries(Panama, Ecuador, Venezuela etc)- 36% Duty for raw shrimps and prepared shrimps 0% Countries like Bangladesh and Africa will have a very big advantage over US. Bangladesh will dominate the Black tiger and fresh water supplies to EEC with advantage of 8.5% Indian black tiger and scampi can never be exported to EEC in the face of such onslaught. The issue has been taken up with the commerce ministry and also action is being taken through the commerce secretary and the commerce minister to send a delegation to negotiate with the EEC. 2. PANIC CAUSED BY EEC REJECTION: There have been few rejections in some of the EEC ports of the Indian product. As a percentage this work out to less than 0.25% of our total exports to Europe. This is far lesser than normal rejection percentage from any other country. Though the EEC authorities have themselves have been intimating about these rejection, the reaction of trade officers of the Indian Government in Europe has been very panicky and problem has been grossly over-stated. As a

result, the authorities in India have been pressurized to take steps, which are far more than what is warranted in trying to correct the situation. This is having the negative effects on the industry as many over reaction resulted in escalation of cost and also the workability of the product. 3. INFRASTRUCTURE FOR FISHERY SECTOR: Lack of infrastructure is one of the serious problems faced by the seafood industry. Fishing crafts and gears with accessories, landing and berthing facilities for different kinds of fishing vessels, unloading the catch, sorting platforms, auction hall, water ice, packing material, transport to and from processing plants and storage are some of the links in the long chain. As the post harvest infrastructure development activities have lagged behind the production trends, huge quantities of fish are spoiled and wasted. With thrust given to exporters, no major initiatives have been made for the domestic market. 4. LACK OF WELL-EQUIPPED LABORATARIES: During handling of fish, it gets contaminated with various bacteria of sanitary. These microorganisms are not originally present in the flesh of the fish caught from offshore waters but a contamination occurs during the handling of the material during unhygienic surroundings. If the time, temperature conditions are favorable, the contaminated bacteria get a favorable opportunity to grow and multiply at a fast rate. The consumption of such fish is dangerous and it will lead to food poisoning. Example, E. Coli (gut of man), Faecal Strepto Cocci (got of man and animal) clostridium potulinum (Marine Environment).

5. FLUCTUATIONS IN FOREIGN EXCHANGE RATE: The fluctuation in foreign exchange rate creates a major problem in the Seafood industry. The fall in US Dollar had greatly affected the exports; this fluctuation causes loss of money to the exporters. There should be a stable exchange rate system which will enhance the export of sea foods.

SWOT ANALYSIS
STRENGTH Highly sophisticated infrastructural facilities. Strong buys back support from regular buyers. Strong supplier relationship ensures god supply of raw materials especially in the period of shortage of raw materials. Skilled employees ensure high production efficiency and can achieve high production capacity. Located in the industrial area company enjoys many privileges. High quality and sanitation and hygiene standards (GMP, SSOP, HACCP) maintained by the company. Directors of the company directly involved in the activities of the firm provides, good coordination and control. Highly experienced and efficient top level and middle level management. Highly sophisticated and large cold store provides good inventory management. EU approval. Location of the company ensures easy availability of raw materials and easy shipments. WEAKNESS

Women workers in the pre-processing center are old & it is difficult to find a replacement for them as the younger generation prefers white collar jobs. Marketing department mainly depend on the regular buyers. Less value addition in products. Not able to utilize optimum production capacity. OPPORTUNITIES EU approval provides opportunity to export to all countries.

Scope for the export of value added products. Highly sophisticated cold stores can provide an extra income by storing the inventory of the other companies. IQF freezer provides opportunity for the production of value added products. Untapped fishery resources like tuna have good market demand in the overseas markets. Duty free imports of raw materials meant for export. THREATS High investment for upgrading infrastructure facilities. High operating costs for maintaining quality standards. Chemical contamination from polluted seawater. Shortage of raw materials. High competition from similar firms.

Sub prime financial crisis. Landings were poor all along the Indian coast. Poor aquaculture crops due to untimely rains and poor price offerings to farmers. Strengthening of rupee against US$ but no improvement in export prices. Prevalence of uncertainty in the US market due to antidumping issues. Competition of vannamei shrimp.

CHAPTER-V

EXPORT PROCEDURE AND DOCUMENTATION


EXPORT PROCEDURES FOLLOWED The export has to go through three different stages in exporting the product, they are. 1. pre-shipment stage 2. Shipment stage 3. Post-shipment stage 1) Pre-shipment stage: In this stage, the exporter finds out its buyers and sent them all necessary details. In response to the above the exporter will receive purchase orders and letter of credit from the buyer. Pre-shipment stage has to undergo the following process. Receiving enquiries: The Exporter at first receives an enquiry from the importer direct or through export house, in the enquiry the buyer request the exporter to send him information about price, quality of goods and terms and conditions of sale.

Sending quotations: The reply of the form of quotations or a Proforma invoice is prepared. The exporter mentions all necessary details relating to the goods required, their quality rice etc. in the quotation. Receiving indent: When the importer is satisfied he sends an indent containing instructions regarding price, quality, quantity, nature of packing method of forwarding and mode of setting payment etc. The exporter has to follow the instructions strictly while sending goods to the importer. Credit enquiry: After receiving the indent exporter verifies the credit worthiness of the importer. Company may ask the importer to provide a guarantee for payment or send a letter of credit in its favour. 2) Shipment stage: In this stage the shipment of goods starts. The company selects shipping through sea as its mode of transportation for export of goods. The container is used for shipping. The container ship is specially designed to transport shipment of relatively large in size.

Packing, packaging and marking The aim of every exporter must be to ensure that the goods arrive safely in the hands of consumer. The fact that the goods are fully insured and there is no need to pay much attention on the goods in transit. Packing refers to the job of providing specialized containers. For the protection of the goods, Packing is used for the general operation of putting of goods into containers for shipment and storage packing requires serious consideration where goods are to be transported or stored in warehouse either for shipment or for distribution. Bad or insufficient packing affects both the exporter and buyer. After the product has been properly packed it must be marked and labled to meet the requirement of three agencies. a) Shipping agency: Shipping agency will not accept the cargo offered to it for transportation unless it is legibly marked. An identifying symbol or number must be shown on the case b) Customs requirement: The custom requirement of foreign countries pertaining to the labeling of various kinds of imported goods are detailed, defined and

strictly

enforced. Merchandise must be marked with the name of the

country of origin; customs regulations also require that the measurement of the packages be marked on the outside. c) Importers requirement: For the purpose of handling packages, a scientific marking policy to make known the content of the packaged without removing the outer packing and unpacking the goods. Exchange Regulations: The company has to surrender the foreign currency to the RBI as per FEMA rules. The company makes declaration to this effect in the prescribed form to the collector or any other officer authorized by the RBI. Shipping Order: The company contacts a shipping company for the shipment of goods. The shipping company issues a shipping order. It is an order issued by the shipping company to the captain of the ship to receive the goods on the border of the ship. Customs formalities for export:

The customs authority examines the documents and appraise that the value and quantity in the shipping is the same as in the export order of letter of credit. After examination of document and appraisement of value, the customs authority makes an endorsement on the duplicate copy of the shipping bill giving direction to the dock appraiser about the extent of physical examination of the dock cargo to be conducted at the docks. All the documents except G.R. forms (original), the shipping bill and a copy of commercial invoice are returned to the forwarding agent to be presented to the dock appraiser. Dock- dues and shipping bills: The company has to pay docks dues fixed by the docks authorities. It has to prepare the shipping bill in triplicate mentioning the quantity and value of goods, name of ship, port destination etc, and submitted them to the customs authorities. Bill of lading: Bill of lading is a document issued by the shipping company upon the shipment of goods. Once the cargo is loaded, the shipping company issues the certificate. Coy of billing of lading is send to the importer; by the presenting this document the Importer can get the clearance of goods.

3) Post shipment stage: It is the last stage in exporting. It is the stage where the company receives the payment. The company receives the payment by the following way: Cash: Cash is a method of payment, but as a method of payment it is rarely used in the international trade. Cash may be remitted by means of an international marking order for small amount. Bill of exchange: This document is also known as draft. It is an unconditional order signed by the marker, directing a person to pay a certain sum of money to the bearer of the instrument. Letter of credit (L/C) Letter of credit is the document of authority for guarantee for payment given by the importer to the exporter through banking channel.

EXPORT PROCEDURE AND DOCUMENTATION


EXPORT PROCEDURE The buyer who wants to purchase a certain quantity of a commodity will place an outright purchase order to the exporter, through their agents in Cochin. The exporter will then purchase the raw material according to the quantity mentioned in the purchase order, and process it. The purchase order will have a validity period, which will be specified in the order itself. Within this validity period the exporter is supposed to be ready for shipment. On the day of shipment, when the consignment is unloaded to the wharf, the customs bill is produced to the customs authorities by the clearing and forwarding agents. As soon as the customs authorities receive the customs bill, the preventive officers of customs inspects the consignment and they will sign the above documents saying that the consignment has been cleared for shipment. When the consignment is loaded to the ship, buyers agent will inform the buyers of the shipment. The buyer will then send a letter of credit to the exporter. On receiving the letter of credit, the exporter takes it to their bank along with the documents mentioned in it. The bank will scrutinize the

documents and on finding those credible will credit the amount due to the exporter. Prepare document required during stuffing. The stuffing advice is send to the consignee. PRODUCT RELEASE PROCEDURE A systematic procedure is followed for the release of consignments meant for export and records and documents are maintained to trace the entire history of the consignment. The given procedure is followed: a. Obtaining the purchasing order from the marketing department. b. Purchasing the raw materials according to the specifications. c. Analysis of the raw materials for sensory, physical, organoleptic, and bacteriological specifications. All the parameters like time, temperature etc are recorded in the raw material receiving report, raw material movement register, raw material organoleptic evaluation register and also in the bacteriological analysis report. d. The material is then continuously monitored by the online quality management systems and all details are recorded in the register for processing and production statement. e. A traceability code is given to the product while processing which identifies the source, date, month and year of production and also the shift during which the material is produced, so as to maintain accountability. f. The overall inspection of the product as per the production code is carried out by the technologists and all results are recorded in the analytical and the bacteriological registers.

g. The product meant for export shall be released on a first-in first-out basis from the cold store. h. As and when the consignment is ready a code list shall be prepared and certificate of export shall be obtained by the Quality Assurance Department from the competent authority. EXPORT DOCUMENTS: The following documents are used: 1. Letter of Credit: It is a written undertaking issued by the buyers bank agreeing to pay a certain sum of money within a speculated period against a specified set of documents 2. Commercial Invoice: A commercial invoice is the exporters bill for the sale of the goods. The basic and most important document required for preparation of all other documents which in greater or lesser detail reproduces information from a commercial invoice. Export/ import duty is also assessed on the basis of this invoice. 3. Bill of Lading: It is a document of title to the goods that are shipped. It is also an acknowledgement from the shipping company for having received the goods on

board the ship. Further the B/L is a contract of carriage and includes terms and conditions on which the shipping company has accepted the goods for transportation. The original B/L is enclosed with the bill of exchange send to the importer. 4. Bill of Exchange: Bill of exchange is also known as Draft. According to Sec.5 of Negotiable Instrument Act 1881, a bill of exchange is an instrument in writing containing an unconditional order signed by the maker direction a certain person to pay a certain sum of money only to or to the order of a person or to the bearer of the instrument. 5. Health Certificate: Health certificate is required for export of marine products. The health department of exporting country issues this certificate. 6. Packing List: A packing list/ a note contains the date of packing, connecting invoice number, order number, details of shipping such as the name of steamer, bill of lading number and date of sailing, case number to which the list/note relates, the details of goods such as quantity and weight and item-wise details. 7. Certificate of Origin:

This certificate is issued by the Chamber of commerce stating that the goods being exported are of Indian origin. The exporter has to obtain this certificate from the Chamber of Commerce and this document is mandatory in some countries like USA, UK, EU etc., 8. Marine Insurance Certificate: In the international trade when the goods are in transit, they are exposed to marine perils. Marine insurance is intended to protect the insured against the risk of loss or damage to goods in transit due to marine peril. Marine insurance is a contract where by the company in consideration of the payment by the insured agrees to indemnify the loss incurred by him in respect of goods exposed to perils of the sea. 9. Export Order: An order is a commercial transaction, which is not only important to the exporter and importer, but it is also of concern to their respective countries, since it affects the balance of payment position of both the countries. It is thus not just a matter of product manufacturing, packing, shipment and payment but also one of the concerns to the licensing authorities, exchange control authorities and banks dealing in export trade. The exporter is required to produce copies of export order to various Govt. departments/financial institutions for various purposes. 10. Order Acceptance:

The order acceptance is a commercial document prepared by the exporter confirming the acceptance of order placed by the importer. Under this document he commits the shipment if goods covered at the agreed price during a specified time. Sometimes the exporter needs a copy of his order acceptance signed by the importer.

DOCUMENTATION STEPS 1. Based on the Purchase order or Breakup given from the factory the exporter should prepare the Customs Invoice to file in the customs office through Shipping Agency, W. Island. 2. The exporter should know the posting time from factory (Customs Inspection) and arrange the container at the time of filing itself. 3. After stuffing they will get the Customer No. Agent Seal No. and Vessel Name and actual Break-up from the factory and then Commercial invoice are prepared. After shipment, the exporter informs the shipping advice to their buyer. 4. After getting the Bill of Lading which is issued by the Shipping Line they give all documents such as Bill of Exchange, Packing List, Bill of Lading, GR copy, GSP certificates in case the goods is to be shipped to European countries America, DSP 121 Certificate for US shipment, and other documents specified in the Letter of Credit to the Bank as per the buyers requirement specified in L/C. 5. Accordingly they should send Non-negotiable copy Bill of Lading, Invoice, Packing List and original DSP 121 (US shipment), original GSP & Health Certificate to the buyer also.

EXPORT OF MARINE PRODUCTS The Indian Seafood industry is 51 years old. It started in 1953 with the first shipment of frozen shrimp to USA by M/s. Cochin Company from the port of Cochin initially exports consisted only of block frozen shrimp. In 1959, the first consignment of cannel shrimp was exported to the USA. These were carried out with no imported inputs. Till the end of 1960, export of Indian marine products mainly consisted of dried items like dried fish and dried shrimp. Although frozen items were present in the export basket from 1953 onwards in negligible quantities, it was only since 1961 the export of dried marine products were overtaken by export of frozen items leading to a steady progress in export earnings. With the devaluation of Indian currency in 1966 the export of frozen and canned items registered a significant rise. Frozen items continued to dominate the trade. Markets for Indian products also spread fast to developed countries from the traditional buyers in neighbouring countries. Even today the total imported content is less than 1%. Exports were concentrated on shrimp. The inclusion of fish, cuttle fish, octopus, clam, crab etc. started later in 1962.The industry employs over 5 million people directly and indirectly. They include a highly skilled and competitive women labour force, which is a definite advantage in raising the socio economic standard in the coastal areas of the country.

MARKET STRUCTURE Before 1960, the markets of Indian marine products were largely confined to neighboring counties like Srilanka, Myanmar (formerly Burma), Singapore etc when our exports were dominated by dried items. This situation changed with the development of technology/modernization: dried products gave way to canned and frozen items. The product shift also resulted in market shift. More sophisticated and affluent markets viz. Japan, USA, Europe, Australia etc. became our important buyers. Several 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. For a long time USA was the principal buyer for our frozen shrimp but after 1977, Japan emerged as the principal buyer of the product followed by the Western European countries. Japan retained its position till 2001-02 AS the single largest buyer for our marine products accounting for about 31% in the total export value. DURING 2006-07 EU accounted for a share of 33% in value terms followed by Japan 16.18%. USA 16.12%, China 13.83%. South East Asia 7.37%, Middle East 4.44% and other minor countries 9%.Except USA all other countries increased their import of marine products from India during the year. Exports to USA dropped by 20% compared to the previous year due to the anti dumping issues in US on Indian shrimp.

CHAPTER-VI

ANALYSIS AND INTERPRETATION


TABLE 6.1

TABLE SHOWING THE EXPORT OF SEAFOODS FROM 2005 - 2009


MEAN YEAR CV LGR 2005 TREND 2012 2006 2013 2014 2007 2008 2009 562841.4 QUANTITY (in MT) 53.54 8.52 461329 802652.9 512164 850615.2 898577.5 612641 541701 686372 7734.24 VALUE (in crores) 39.72 6.04 6646.69 10070.15 7245.30 10537.33 11004.52 8363.53 7620.92 8794.79 1751.86 DOLLAR($) 10.39 6.09 1478.48 2285.43 1644.21 2392.14 2498.86 1852.93 1899.09 1884.61

Source: Secondary data

INFERENCE Study of export performance of India from 2005-09 shows that the export has been increasing year by year. The quantity is represented in MT which implies metric tonne and value in crores. This is due to the positive response of foreign customers towards Indias marine products. The maximum growth is

shown in the year 2009 with a quantity of 686372 MT and value of 8794.79 crores. The minimum growth is shown in 2005 with a quantity of 461329 MT and value of 6646.69 crores.

CHART 6.1(a)

CHART SHOWING YEARWISE EXPORT OF SEAFOODS FROM 2005 TO 2009

TABLE 6.2

TABLE SHOWING WORLD FISHERIES AND ACQUACULTURE PRODUCTION (2000 TO 09)

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Aquaculture

13.7

15.4

17.8

20.9

24.4

26.7

28.6

30.5

33.4

35.6

Wild Harvest

84.4

85.3

18.6

91.7

92.0

93.5

93.9

87.3

93.2

94.8

Total

98.1

100.7

104.4

112.6

116.4

120.2

122.5

117.8

126.6

130.4

Source: Secondary data INFERENCE The above table shows the world fisheries and aquaculture production during 2000 to 2009.There is a rising trend in the aquaculture production worldwide. During 2000 it was 13.7 while it rose to 35.6 at 2009. Likewise the wild harvest was 84.4 at 2000 which increased to 94.8 during 2009.

CHART 6.2(a)

CHART SHOWING WORLD FISHERIES AND ACQUACULTURE PRODUCTION (2000 TO 09)

TABLE 6.3 TABLE SHOWING FISH PRODUCTION IN INDIA (In Thousand Tons) YEAR 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 TOTAL MEAN CV LGR TREND 2012 2013 2014 MARINE 2275 2300 2447 2576 2649 2692 2707 2967 2950 2696 2834 3056 3198 3264 3478 3689 3743 3885 4014 4248 61668 3083.4 22.20 3.10 4280.67 4376.45 4472.23 INLAND 1402 1536 1710 1789 1995 2097 2242 2381 2438 2566 2823 3014 3150 3210 3387 3459 3653 3756 3851 3960 54419 2720.95 24.87 5.06 4442.74 4580.48 4718.23

Source : Indian Council of Agricultural Research, Ministry of Agriculture

INFERENCE The above table shows the fish production in India. From the above table it is evident that the Production of Fish shows an increasing trend year by year. Due to the government rules and regulations, the exports of marine products have become friendly to the exporters and the government gets good revenue out of marine exports.

CHART 6.3(A) CHART SHOWING FISH PRODUCTION IN INDIA (IN 1990 TO 2009)

TABLE 6.4
CONTRIBUTION OF SEAFOOD TO INDIAS EXPORTS

YEAR

VALUE OF SEA FOOD EXPORT (Rs.MILLION)

SHARE EXPORTS (%)


TOTAL EXPORTS AGRICULTURAL EXPORTS

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 TOTAL MEAN CV LGR TREND 2012 2013 2014
.

25,519 35,366 33,811 40,076 44,868 43,686 50,054 51,789 53,843 55,651 57,890 58,889 59,996 61,848 63,879 65,999 803.16 50197.75 51.48 4.84 75730.79 78162.5 80594.22

3.66 4.28 3.18 3.37 3.45 3.13 3.14 3.17 3.20 3.28 3.43 3.65 3.83 3.99 4.32 4.46 58 3.59 28222.22 1.18 4.04 4.08 4.12

18.11 16.05 19.22 20.50 18.93 18.17 14.62 15.78 17.11 19.84 24.97 19.56 21.86 23.48 25.78 26.84 321 20.05 5020.06 2.72 25.79 26.34 26.88

Source: Indian Council of Agricultural Research (2008)

INFERENCE The above table shows the contribution of seafood to Indias exports. The Contribution of seafood products from India is positive and increasing. The quality of marine products manufactured in India is really encouraging. Many developed countries are the major consumers of fish and other marine products from India. Marine products are also exported in processed food form also. They are exported in Tinned bottle and other value added products.

CHAPTER-VII

FINDINGS, SUGGESTIONS AND CONCLUSION


MAJOR FINDINGS: The following are the major findings of the study:
The export performance of Indian seafood is promising has been increasing year by year. This is due to the positive response of foreign customers towards Indias marine products. The production is carried on, on the basic of customer order. Women workers in the pre-processing centre are old and its difficult to find replacement for them. As the younger generation prefers White collar jobs. The availability of raw material is seasonal. This would affect the export of sea foods. Joint participation of MPEDA and trade in the International fairs have been great success in bringing a more business to trade and increasing the popularity of Indian sea food in abroad. There is raising trend in the production of aqua culture in worldwide. Highly sophisticated cold storage specialty can provide for preservation of marine products.

Due to the government rules and regulations, exports of marine products have become friendly to the exporters on the government gets good revenue of marine exports. Many developed countries are the major consumers of fish and other marine products in India.

SUGGESTIONS The following were the suggestions made:


Industrial fairs must be conducted to showcase its better quality. The government policy should be made at improving the foreign demand for marine products should be well implemented. The awareness about marine products offered in the international market should be increased. MPEDA should conduct seminars, workshops for the exporters all over India. The exporters must make use of the various incentives schemes offered by MPEDA. The raw material must be made available to the exporter from time to time. Due concentration should be given for the packing of major marine products.

CONCLUSION
Seafood consumption has increased significantly during the recent years. Many factors are associated with this increase. The availability of a wide variety of different products generically known as seafood and many of them being supplied by international trade is undoubtedly a major factor for this demand growth. Two sourges of our times regarding food, hunger and obesity, can be minimized through increased consumption of seafood. Increasing further the consumption of seafood is certainly a step towards improving food security in the world. The project A study on the growth and development of Indian seafood industry is aimed at finding the current trend in the export of sea foods. This work provided me an opportunity to learn about marine industry, indeed an evident practical exposure. There is a tremendous increase in the export value at 2005 of 461329 crores to 686372 crores in 2009. Systemized working and progressive approach will enhance the image of Indian Marine Products in the leading market so as to achieve high degree of differentiation to command a premium price for the products. I conclude by saying that I have nice exposure in the field of Marine Products Exports as well as the Export procedure, process and Documentation involved which gave me a practical insight and exposure.

BIBLIOGRAPHY

BOOKS
1. Export Policy, Procedures & Documentation 2. Business Research Methods 3. Business Statistics 4. Business Environment M.L Mahajan C.R.Kothari Dr..K.Sharma Aswatthappa

JOURNALS
1. MPEDA Newsletter, Vol. IV, Issue XXV, January 2010 2. Indian Journal of Marketing, Vol. XXIX, Issue No.2, December 2009.

WEBSITES

www.mpeda.com

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