A

REPORT ON

MARINE PRODUCTS

SUBMITTED BY:

GROUP -10

MAYANK BANSAL (A1802009123)

KUMAR SAGAR (A1802009176)

RITESH HANJURA (A1802009445)

MBA –IB (2009-2011)

SECTION-A
FACULTY GUIDE

Ms. ALKA MAURYA

AIBS

AMITY INTERNATIONAL BUSINESS SCHOOL, NOIDA

AMITY UNIVERSITY-UTTAR PRADESH

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 INDEX:

S. No. Topic Page No.

1 Overview 3
2 Domestic Industry 4
3 Trend in Exports 9
4 Major Export Destinations 11
5 Provision in India’s FTP 12
6 Quality Standards 16
7 Other Relevant Information 16
8 Authority Responsible 18
9 References 22

1. OVERVIEW

The marine sector occupies an important place in the socio-economic development of

India. Recognized as a powerful income and employment generator, it stimulates the
growth of a number of subsidiary industries, is a source of cheap and nutritious food and
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an instrument of livelihood for a large section of coastal population of the country. The
marine sector, which began as a subsistence operation by employing exclusively
traditional crafts during the pre-independence days has today attained the status of capital
intensive industry. Export of marine products plays a vital role in fisheries development
in India by providing employment and income to millions engaged in fisheries,
aquaculture, processing and allied activities. Due to its high importance a modest attempt
has been made here to view the export performance of marine fisheries sector and
identify its potentials for further development.

2. DOMESTIC INDUSTRY

2.1 INTRODUCTION

In 2006-07, fisheries accounted for nearly 1.3% of India’s GDP. India with a fishery
production of 6.1 million MT from both captured and cultured sources is ranked third
among the largest fish producing countries and 19th among the seafood exporting
countries of the world. The fisheries sector has significant subsistence as well as trade
dimensions. About 7 million small fishermen depend exclusively on fishing for
livelihood. Overall 12 million fishermen are engaged actively in the sector, including
indirect workers. Exports of marine products have played a key role in developing the
fishing and aquaculture sectors in India. India has a share of 2.58% of the world seafood
export trade. Aquaculture contributes 19% by volume and 55% by value of total seafood
exports. In aquaculture, India is the largest producer after China. The export of marine
products has steadily grown over the years - from Rs.3.92 crore in 1961-62 to
Rs. 8607.94 crore in 2008-09. In terms of volumes, 2009-10 Exports aggregated 678436
tonnes valued at Rs.10048.53 crore. In terms of US dollars, it was $2,132 million.
Compared to the previous year, there was 10.08 percent growth in volume, 15.26 percent
in rupee earning and 10.32 percent growth in US dollar earnings. Frozen shrimp
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continued to be the major export item accounting for 41.74 percent of the total dollar
earnings.

2.2 HISTORY

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 was 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 neighboring countries.

Before 1960, the markets of Indian marine products were largely confined to neighboring
countries like Sri Lanka, 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 West 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 the year
2002-03 and 2003-04 USA emerged as the single largest market for our marine
products. During the year 2004-05, the European Union has collectively become the
largest importer of Indian marine products and it retained its position since 2005-06.

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During 2008-09 European Union (EU) continued as the largest market with a percentage
share of 32.6% in $ realization followed by China 14.8%, Japan 14.6%, USA 11.9%,
South East Asia 10%, Middle East 5.5% and Other Countries 10.6%.

2.3 MAJOR ITEMS OF EXPORT

The major marine products exported by India can be grouped into 9 categories:

• Frozen shrimp: Accelerated Freeze Dried (AFD) shrimp, block frozen shrimp,
cooked salad shrimp, Individually Quick Frozen (IQF) and cultured shrimp.
• Frozen fish: Chinese pomfret, white and black pomfrets, fish lions/fish steaks,
eels, fish fillets, fish roe, freshwater fish, mackerel, reef cod, ribbonfish, sardine,
seabreams, seerfish, shark meat, snapper, big eye tuna, skipjack tuna, yellow fin
tuna, gutted finless shark and shark tail.
• Frozen cuttlefish/ squid: Cuttlefish beak, cuttlefish blanched, cuttlefish bones,
cuttlefish deskined, cuttlefish fillets, cuttlefish IQF, cuttlefish ink, cuttlefish meat

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 trimmed, cuttlefish rings, cuttlefish roe, cuttlefish tentacles, cuttlefish tray packed,
cuttlefish whole cleaned and cuttlefish wings.
• Frozen lobster: Rock lobster whole, sand lobster whole, IQF, deep sea lobster,
rock lobster tail, sand/slipper tail, whole cooked lobster and lobster meat.
• Live items: Aquarium fish, crab, fish, lobster, shrimp, snail and whelk.
• Chilled items: Clam meat, fish, freshwater fish, lobster, pomfret and shrimp.
• Dried items: AFD shrimp powder, agar agar (seaweed), Beche-de-mer (sea
cucumber), Bombay duck, chitin, chitosan, clam meat, cuttlefish, cuttlefish bones,
fish maws, fish meal, fish nails, fish paste, isinglass, mussel meat, oyster shell
powder, prawn feed, seahorse, shark fin rays, shark fins, shrimp powder, squid,
fish skin, jellyfish salted, shark bones and shark tail.
• Shells: Crab shell, seashell and turtle shells.
• Others: Canned clams, chemeen chutney with and without coconut, fish pickles,
fish vegetable barbeque, fish chutney, fish oil, fish powder, frozen mud crab,
frozen crab meat, IQF whole crab, pasteurized crab, stuffed crab, freeze dried
clam, fried fish and prawn, seafood vegetable mix, shark cooked and crushed,
shrimp pickle, frozen snail meat, frozen surimi and frozen crab stick.

ITEM 2009-2010(USD Million) 2008-2009(USD Million)

Frozen Shrimp 883.03 839.28
Frozen Fish 430.94 375.24
Frozen Cuttle Fish 195.69 168.27
Frozen Squid 132.24 142.87
Dried Item 208.72 92.51
Live Items 29.52 21.82
Chilled Items 55.87 48.39
Others 196.84 220.84
Source: Marine Product Export Development Authority, http://www.mpeda.com/inner_home.asp?
pg=publications/exportreview/trends.htm

• New Potential Species are Mud Crabs, Tuna Fish, Sea bass, Ornamental fish,
Shrimps.

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 MUD CRABS

 Technology for seed production of Mud Crabs and Sea Bass fish has been
developed by CIBA (Central Institute of Brackish Water Aquaculture) and
MPEDA .
 Potential sites spotted for this are Tamil Nadu and Andhra Pradesh.
 Mud Crab is identified as best substitute of Shrimps.
 By using the technology 1 lakh tonnes of Mud Crabs can be produced giving
revenue of Rs. 2000 Crores

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.

SEA BASS

 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, and Maharashtra.
 The technology has been perfected in Southeast Asia, and is in nascent stage in
India.
 One kilogram of Sea Bass fish can give revenue of Rs 100.

ORNAMENTAL FISH

 Major Importers USA, Japan and Europe. China and South Africa are Emerging
Markets.
 Global Trade of $5 Billion annually, growing by 6%.
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  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

SHRIMPS

 India mainly produces Black Tiger Shrimp (1.5 lac tonnes on an average).
 It has faced stiff competition from Chinese Vannamei Shrimps because

o It has low production cost, and therefore cheap.

o Resistant to virus diseases.
 Per Hectare production is 20 tonnes, against 2-3 tonnes of Black tiger Shrimp.
 China produces 6.5 lac tonnes , Thailand 4.5 lac tonnes, Indonesia 4 lac tonnes and
Vietnam 3.5 lac tonnes and there annual production is rising (Figures as per 2009).
3. TREND IN EXPORT:

During 2009-10 for the first time in the history of Marine product exports, the export
earnings have crossed 2 billion US dollars and Rs.10, 000 crore mark. Export has
crossed all previous records in quantity, rupee value and US $ terms. Exports aggregated
to 678436 tonnes valued at Rs.10048.53 crore and US Dollar 2132.84 million. Compared
to the previous year, this recorded a growth of 12.54% in quantity, 16.74% in rupee
earning and 11.75% growth in US $ earnings

Source: MarineYear
Product Export Development Authority,
Quantity (in http://www.mpeda.com/inner_home.asp?
MT) Value ($ MILLION)

2003-2004 412017 1330.76

2004-2005 461329 1478.48

2005-2006 512164 1644.21

2006-2007 612641 1852.93

2007-2008 541701 8 1899.09

2008-2009 602835 1908.63

2009-2010 678436 2132.84

Source: Marine Product Export Development Authority, http://www.mpeda.com/inner_home.asp?
pg=publications/exportreview/trends.htm

Source: Marine Product Export Development Authority, http://www.mpeda.com/inner_home.asp?

pg=publications/exportreview/trends.htm

4. MAJOR EXPORT DESTINATIONS:

European Union (EU), continued to be the largest market with a share of 29.89% in
US $ realization. China maintained the second place with a share of 17.80%, followed

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by Japan 13.06%, USA 10.01%, South East Asia 14.76%, Middle East 5.49% and Other
Countries 8.99%. Exports to countries like Libya, Reunion islands, Australia,
Puertorico, Dominican Republic, Kenya, Tanzania, Ukraine, Brazil etc. registered a
positive growth for the 2009-2010 financial year.

Country Quantity (in MT) Value ($: USD million)

Japan 62690 278.58
USA 33444 213.52
EU 164800 637.40
China 144290 379.70
South East Asia 149353 314.85
Middle East 34907 117.05
Source: Marine Product Export Development Authority, http://www.mpeda.com/inner_home.asp?
pg=publications/exportreview/trends.htm

5. PROVISIONS IN INDIA’S FOREIGN TRADE POLICY

• Imports for technological up gradation under EPCG in fisheries sector (except

fishing trawlers, ships, boats and other similar items) exempted from maintaining
average export obligation.
• Duty free import of specified specialized inputs / chemicals and flavoring oils is
allowed to the extent of 1% of FOB value of preceding financial year’s export.
• A self removal procedure for clearance of seafood waste is applicable subject to
prescribed wastage norms.
• No Quantitative restrictions on export.
• Duty free import of specified specialized inputs to enable to achieve a higher value
addition and enter new export markets. Central assistance to States for
development of critical infrastructure for export.
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 • To allow import of monofilament longline system for tuna fishing at a
concessional rate of duty and Bait Fish for tuna fishing at Nil duty.
• Marine products are considered for VKGUY scheme.

PACKAGE FOR MARINE SECTOR:

a. Duty free import of specifies specialized inputs / chemicals

and flavoring oils as per a defined list shall be allowed to the extent
of 1% of FOB value of preceding financial years export. Use of
these special ingredients for seafood processing will enable us to
achieve a higher value addition and enter new export markets.
b. To encourage the existing mechanized vessels and deep sea
trawlers to adopt modern technology for scientific exploitation of
our marine resources in an eco-friendly manner and boost marine
sector exports, it is proposed to allow import of monofilament long
line system for tuna fishing at a concessional rate of duty.
c. A self removal procedure for clearance of seafood subject to
wastage norms.

MAJOR MARINE ITEMS WHICH ARE EITHER PROHIBITED/ RESTRICTED

ARE AS FOLLOWS:

S. No. Tariff Items HS Unit Item Description Export Nature of

Code Policy Restriction
1 0508 00 50 Kg. Sea Shells, including Prohibited Not permitted
polished sea shells to be exported
and handicrafts
made out of those
species included in
the Schedules of the
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 Wild Life
(Protection) Act,
1972.
2 1212 20 10 Kg. Seaweeds of all Restricted Exports
types, including G- permitted
1212 20 90
edulis but excluding under license
brown seaweeds and
agarophytes of
Tamil Nadu Coast
origin in processed
form.
3 0302 69 30 Kg. Fresh or Chilled or Restricted Exports
Frozen silver permitted
0303 79 50
pomfrets of weight under license
less than 300gms.
4 0303 79 99 Kg. Beche-de-mer Prohibited Not permitted
to be exported
irrespective of
its size.
5 0306 12 10 Kg. Sand Lobster (under Prohibited Not permitted
sized) to be exported

ON GOING SUBSIDY ASSISTANCE SCHEMES

Export Production – Capture Fisheries

• Financial assistance for installation of insulated / Refrigerated Fish Hold,
Refrigerated Sea Water System (RSW) and Ice Making Machine on board
mechanized fishing vessels. 30% of the cost of eligible items subject to a
maximum of Rs.5 lakh per owner of fishing vessel.
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 • Financial Assistance for constructing New Tuna Long Liners. Subsidy assistance
of 5% points on bank interest limited to Rs.10 lakh for 18-20 meter vessels and
Rs.15 lakh for above 20 meter vessels.

Export Production – Culture Fisheries

• Subsidy for small-scale hatcheries at the rate of 25% of the capital cost subject to a
maximum of Rs. 3.00 lakh for private hatcheries.
• Subsidy for small-scale hatcheries at the rate of 50% of the capital cost subject to a
maximum of Rs. 10.00 lakh per beneficiary/hatchery limited to 4 hatcheries only.
• Subsidy for medium-scale hatcheries at the rate of 25% of the capital cost, subject
to a maximum of Rs.6.00 lakh per beneficiary / hatchery.
• Subsidy for medium-scale hatcheries at the rate of 50% of the capital cost, subject
to a maximum of Rs.20.00 lakh per beneficiary / hatchery limited to 6 hatcheries
only.

FOCUS MARKET SCHEME:

Market services and market promotion have assumed special significance in view of the
growing stiff competition from other seafood exporting countries in all overseas markets.
Consequent on the large scale development of commercial scale shrimp farming in
several shrimp producing countries in Asia and Latin America, the shrimp exporting
countries are making all efforts to maximize share in all major world markets. There is
need for stepping up of our promotional programmes in major overseas markets and
developing better rapport with trade and officials in the importing countries.
With this aim and objective, MPEDA has drawn up various market promotion
programmes for projecting our resource potential, product diversification, quality
assurance and liberal incentives for investments and joint ventures. These include:
1. 26 new countries have been included within the ambit of Focus Market Scheme.
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 2. The incentives provided under Focus Market Scheme have been increased from
2.5% to 3%.
3. Overseas market survey
4. Data collection and maintenance of Data Bank
5. Assistance for market development
6. Publicity through media and production of literature and films on trade promotion.
7. Sponsoring of sales team / delegations. Invitation to overseas experts for export
promotion visit to India.
8. Organizing buyer-seller meets in overseas markets

9. Participation in overseas Trade Fairs and Exhibition

10. Exhibition & Trade Fairs within India.

TOWNS OF EXPORT EXCELLENCE:

A number of towns have emerged as dynamic industrial clusters contributing handsomely

to India’s exports. It is necessary to grant recognition to these industrial clusters with a
view to maximizing their potential and enabling them to move higher in the value chain
and tap new markets.

Selected towns producing goods of Rs.750 Crore or more will be notified as TEE based
on potential for growth in exports. However for TEE in Fisheries sector, threshold limit
would be Rs.150 Crores.

6. QUALITY STANDARDS:

PRODUCT DEVELOPMENT FOR EXPORT:

• Research and development of new products.
• Training in new technology and inviting overseas technical experts to India.
• Significant developments in laboratory diagnosis

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QUALITY IMPROVEMENT:
• Imparting training to technologists of Indian seafood industry on various aspects
of quality control.
• Monitoring of seafood quality in landing and pre-processing centers.
• Integrated development programme for upgrading seafood quality by providing
infrastructural facilities like pre-processing centers and setting up of mini lab
towards quality assurance.
• The Regulations European Commission Directive dated July 22, 1991 prescribes
the health conditions for the production and placement of fish and fishery products
on the unified European market
• MPEDA Lab at Cochin has facilities to test seafood samples
• According to Hazard Analysis Critical Control Point cell or HACCP it has
become mandatory for every importer to register with HACCP.

7. OTHER RELEVANT INFORMATION:

7.1 Achievements in Marine Sector

• High health and high growth technology for shrimp farming in progress
• Development of Open sea cage farming of Seabass and lobsters along the west and
east coast of India
• Production process of value added products from cuttlefish, squids, threadfin
breams, Tilapia and major carps standardized
• Developed packaging system for cooked fish products in flexible pouches to
maintain and preserve quality of products for more than a year
• Developed a method for detection of White Spot Disease in shrimp

7.2 Challenges in Marine Industry

• Impose of Anti-dumping duty by US in 2004.
• Japan and EU imposed strict quality control standards on Indian Marine Products.

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 • 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. 39.40 2010 is major challenge to overcome.
• Low scale Indian Exporters lack Risk Taking capacity to jump into technology
Sophisticated Processed food Industry.

7.3 Challenges faced by exporters

• Aquaculture exporters faced the problems of Power Supply and Road Linkage
• Lack of Landing Centers and Storage Facilities
• Some ports does not have a refrigerated container facility for perishable goods
• Faced ongoing challenges in meeting evolving food safety requirements
• To manage labour issues and to bring greater discipline on fishing boats and at
landing sites at the time of transaction

7.4 Future Outlook

• Monitoring of health of inland and coastal aquatic ecosystems
• Affordable ready to eat fish products
• Improved processing technologies for fishery products and by-products of
international standards
• Fishery waste utilization
• Evolving techniques to ensure seafood safety
• Water budgeting in inland aquaculture

8. AUTHORITY RESPONSIBLE

1. MPEDA- Marine Products Exports Development Authority

2. Seafood Exporters Association of India (SEAI)

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 MPEDA- MARINE PRODUCTS EXPORTS DEVELOPMENT AUTHORITY

• 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)

ROLE OF MPEDA

 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.
 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.

MARINE CAPTURE FISHERY

• Deep Sea Fishing
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 – 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

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.

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

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MARKET PROMOTION

• Overseas market survey

• 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.

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.
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• 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.

FUNCTIONS

• Seafood Exporters Association of India is focused 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.

9. REFERENCES

 Marine Product Export Development

Authority/Publication/Exportreview/trends.htm
 http://Kerela State Industrial Development Corporation /marine-
products.php
 http:// indian council of agriculture research.org.in/en/fisheries.htm

 United Nations Development Programme. “Trade in Fisheries and Human

Development.” UNDP 2008
 http://genderandtrade.org/gtsearch
 http://dgft.gov.in

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