Aquaculture industry in India
Aquaculture is one of the fastest-growing sectors in the world. India, with its vast coastal area, offers immense opportunities for fisheries in both marine and inland waters. The country has the secondlargest share in the global aquaculture market, mainly due to its 2.36 million hectares of ponds and tanks, a coastline of 7,500 kms and brackish water area of
1.1 million, which offers a ground for fish farming. In India, the fisheries sector is a means of livelihood for ~28 million people in the country.
The Food and Agriculture Organisation (FAO) 2020 report revealed that Asia has the largest share in the global fish production at 89 per cent, since the last 20 years. In 2018, the global capture fish production reached the highest-ever level and recorded 96.4 million tonnes; this was driven by marine capture and inland fishing. The top seven key producers were China, Indonesia, Peru, India, Russia, the US and Vietnam, accounting for ~50 per cent of the total global capture production.
India accounts for 7.58 per cent of the global production. Fish production in the country reached an all-time high of 14.16 million metric tonnes between 2019 and 2020. The fisheries sector contributes 1.24 per cent to the gross value added (GVA) and 7.28 per cent to the agricultural GVA.
Blue revolution
Fish consumption in the domestic market plays an important role in creating the demand for fish in the market. Henceforth by increasing the fish production and enhancing aquaculture productivity in the country can help the sector in bringing the blue revolution.
As pointed out by Seafood Exporters Association of India President Jagdish Fofandi, India's seafood exports between April 2021 and January 2022 reached a value of $6.7 billion, despite a slight dip in January's export totals.
India's seafood-export value sank to $5.96 billion in FY 20-21, down 10.6 per cent from that of $6.67 billion in the 2019-2020 fiscal year. Over the past year, India has faced stricter food import inspections by Chinese authorities, with the impact of COVID-19 pandemic.
Nitin Awasthi, Research Analyst at Incred Equities said “Shrimp exports in India registered a volume growth of 11 per cent Year-on-year ( YOY) in January 2022 at 42,402 metric tonnes (MT). Shrimp prices increased to $8.28/kg, showing a growth of 10 per cent YOY. Whereas in Ecuador, shrimp exports registered a volume growth of 59 per cent YOY in January 2022 at 80,547 MT.” He added, “Indian shrimp exports need to grow at 36.5 per cent, which is tough. At this point the seafood industry is looking for 20 per cent growth but China imports are surpassing record levels with record speeds. It is important to note that Ecuador exported more shrimp to China than the total exports of India for the month of January 2022.”
With higher demand of fish and seafood as a staple food choice in the coastal areas, India can emerge as one of the leading fish exporters in the world; henceforth increasing the surplus available for local consumption.
Being 'veg'
Another reason behind low consumption of seafood has been a large number of vegetarian populations in India. States like Bihar, Uttar Pradesh, Madhya Pradesh, Haryana, Rajasthan and Jharkhand contribute to a huge number of vegetarians.
Even though seafood like salmon, herring, and sardines, are the best dietary source of the omega-3 fatty acids eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA); a vast majority of Indians restricts themselves on including seafood in their diet.
In a survey released by Pew Research Centre, in
2021, over 29,999 Indians throughout the country included questions on dietary preferences. According to the survey, around 39 per cent of the overall Indian population was identified as vegetarian.
Seafood contamination
Is the seafood healthy and safe to consume? This has been a constant question hopping onto almost everyone's
mind, whenever it comes to seafood consumption. But why does its safety still remain in question?
Scientific research has shown that seafood is rich in nutrients and can positively influence health. Seafood such as salmon, clams, and shrimp, are usually high in protein, vitamins and minerals. Even after their nutritional qualities, seafood has been responsible for a large proportion of food-borne diseases. This is because some of the seafood including finfish, marine mammals, and crustaceans can be inherently riskier. Seafood can even contain harmful contaminants, like mercury and microplastics. Other reasons for their contamination can be handling, environment, processing and preparation.
Thereby many industry players like Licious, Tendercuts are promoting seafood in India by bringing more nutritional and dietary options, keeping in mind the safety concerns.
Lockdowns and supply chain disruption
The COVID-19 pandemic and sluggish overseas markets cast their shadow over India's resurgent seafood sector as the country exported 11,49,341 MT of marine products worth Rs 43,717.26 crore ($5.96 billion) during FY 2020-21, registering a contraction of 10.88 per cent as compared to a year earlier. USA, China, and the European Union were the leading importers, while frozen shrimp retained its position as the major export item, followed by frozen fish.
In 2019-20, India exported 12,89,651 MT of seafood worth Rs 46,662.85 crore ($6.68 billion), marking a decline of 6.31 per cent in rupee terms and 10.81 per cent in dollar value in 2020-21.
COVID-19 pandemic has seriously disturbed the food industry especially seafood industry in India. The export of Indian seafood was reduced because of port closures, loss of access to cold storage, shipping and air freight. The domestic market was also disrupted by lack of fish catch and supply chain.
Shubhkarman highlighted, “India is the second largest exporter of seafood globally. It exported 1.1 million MT of seafood worth $7 billion in FY2021, with frozen shrimp accounting for 51 per cent of volumes and 74 per cent of revenue share. The largest importers were the US, China and European Union. The exports were down 10 per cent compared to FY2020, due to the impact of COVID-19 pandemic that reduced demand for seafood across restaurants and end consumers.”
“Three key trends are expected in the seafood industry that are expected to drive demand for seafood. First, the growth of organised retail across the country as well as cold transportation infrastructure, will increase availability and reliability of fish supply across most major cities in India. Second, a shift towards a more active/healthy lifestyle and recognition of fishes as healthy meat alternatives for protein, is expected to drive demand substantially. Third, the increasing cost of meat (e.g., lamb, chicken) will also make fish a more attractive alternative to meat in the domestic market.”
- Shubhkarman Singh, Angel investor
“Shrimp exports in India registered a volume growth of 11 per cent Year-on-year (YOY) in January 2022 at 42,402 MT. Shrimp prices increased to $8.28/kg, showing a growth of 10 per cent YOY. Whereas in Ecuador, shrimp exports registered a volume growth of 59 per cent YOY in January 2022 at 80,547 MT.
- Nitin Awasthi, Incred Equities Research Analyst
“We are thrilled to expand to more than 150 towns and sign off setting up PoweredBy-freshtohome's stores countrywide. These will serve as convenience stores to - customers to offer the finest quality chemical and preservative-free products,”
- Shan Kadavil, Founder, Freshtohome
“Undeniably, there is an immense market opportunity in the fish and seafood retail sector. Buying fish is an underserved retail experience in India.
- Narendra Pasuparthy, Founder & CEO, Nandu’s
Strategising domestic consumption
To popularise seafood and increase the per capita consumption of fish, National Fisheries Development Board (NFDB) has been extending financial assistance for construction of hygienic wholesale and retail fish markets, fish outlets, mobile fish vending vehicles, processing units, etc.
Further, NFDB has organised ‘Fish Festivals' in different parts of the country to campaign and create awareness among consumers by exhibiting preparation of different fish menus and showcasing various ready to cook and ready to eat value added fish products. The NFDB has developed some feasible strategies to improve domestic consumption, such as;
● Exports with improved infrastructure, trained human resources and proper facilities to move up the value chain should be focussed upon.
● Further, promotion and consumer awareness about seafood as a healthy food should be taken up in order to increase domestic consumption.
● Research and Development programmes that focus on developing breeding, hatching, seed rearing and advanced technology for aquaculture should be adopted to enhance production and productivity.
● Availability of processed food from fish, shrimps should be increased.
● Sales of preserved and processed fish in the national and overseas markets must be encouraged.
● Development of appropriate packaging material for fish and fishery products should be encouraged.
Industry players are also pitching in some new ideas to increase the demand of seafood. Hyperlocal and omnichannel meat retail brand Nandu's has expanded
into fish and seafood retail across all its sales channels.
“Undeniably, there is an immense market opportunity in the fish and seafood retail sector. Buying fish is an underserved retail experience in India. At Nandu's, we are striving to change that and aim to deliver a delightful shopping experience for fish and seafood lovers. With our foray into this segment, Nandu's vision is to become India's favourite neighbourhood meat and fish brand, across online and offline retail channels. We are excited about this category and expect a significant revenue contribution from it,” stated Narendra Pasuparthy, Founder & CEO, Nandu's.
Another leading player, Freshtohome has launched around 100 new Powered-by-freshtohome stores to strengthen its customer experience.
“We are thrilled to expand to more than 150 towns and sign off on setting up Powered-by-freshtohome's stores countrywide. These will serve as convenience stores to customers to offer the finest quality chemical and preservative-free products,” said Shan Kadavil, Founder of Freshtohome.
Kadavil added, “Given the market's great potential and the rise in demand for quality meat and seafood, we aim to provide customers with products at affordable rates and at their convenience.”
What's driving demand?
The country is expecting a lot of new trends, in order to increase the demand for seafood,
Pointing out a few trends, Shubhkarman stated, “Three key trends are expected in the seafood industry that are expected to drive demand for seafood. First, the growth of organised retail across the country as well as cold transportation infrastructure, will increase availability and reliability of fish supply across most major cities in India. Second, a shift towards a more active/healthy lifestyle and recognition of fishes as healthy meat alternatives for protein, is expected to drive demand substantially. Third, the increasing cost of meat (e.g., lamb, chicken) will also make fish a more attractive alternative to meat in the domestic market.”
Another key trend that is driving the seafood industry is sustainability. Sustainability has become very important in the seafood trade. As stated by the Food and Agriculture Organisation of the United Nations (FAO), “Eco-labels are seals of approval given to products that are deemed to have fewer impacts on the environment than functionally or competitively similar products. The rationale for basic labelling information at the point of sale is that it links fisheries products to their production process. Product claims associated with ecolabelling aim at tapping the growing public demand for environmentally preferable products.”
While some seafood exporters in India have already started using Ecolabel, more players need to be encouraged to boost their exports.”