The marine products exporters from the country deserve a big salute for another stupendous performance despite the adverse conditions in the global markets. The record-breaking performance during the financial year that ended in March 2023 shows the resilience of the marine products sector comprising fishers, farmers, processors and exporters in the country. Reports in the media quoting Marine Products Export Development Authority chairman DoddaVenkata Swamy stated that the quantity of exports rose to 17,35,286 tonnes compared with 13,69,264 tonnes in the previous year. The export value rose to Rs 63,969.14 crore as against Rs 57,586.48 crore in FY 22. Shrimp continues to be the mainstay of the export income accounting for Rs 43,135.58 crore out of the total export income of Rs 63,969.14 crore. The US is the top destination for Indian shrimp followed by China and the European Union.
The highly successful visit of PM Modi to the US is expected to provide a further boost to the marine products export from the country as the bilateral engagements reach all time high levels. The media reports suggest that the visit has opened new vistas for further consolidation of the economic relations between the two countries. The visit of Modi to Egypt is also expected to open new opportunities for the marine product exporters from the country. Egypt is a big market but their government policies restrict free flow of our products into the market and are presently routed through the UAE.
The significance of the export performance has to be understood in the background of the turbulence in the global shrimp markets caused by a supply glut following large scale increase in aquaculture production in countries such as Ecuador. The resulting knockdown on shrimp price in the global markets took a hit on Indian exporters too as the global shrimp markets turned into a buyer’s market from a seller’s market. The decline in the unit value realisation from shrimp export could be taken as a reflection of the turbulence in the global markets in the wake of the above developments. The important point, however, to note is that despite such adversities Indian exporters managed to record a stellar performance showing the inherent strengths of the marine products value chain in the country. What could be the important takeaway from such an inspiring performance?
Scaling up:
The tremendous scope for scaling up aquaculture production along with a clear focus on improving the farmers’ income is the most important signal emanating from such an achievement. We should also keep in mind the significance of realising the full potential of the Indian aquaculture in the background of some of the other key sectors of exports facing shakeout due to the increasing trend of protectionism in many countries. A farmer-focused approach has become imperative for the further growth and consolidation of the Indian aquaculture sector mainly on two counts. Aquaculture has become the mainstay of the Indian marine products exports. Even the latest figures show that frozen shrimp sourced mainly from aquaculture farmers accounted for over 70 percent of the export income. Aquaculture farmers, in other words, have become the most important link in the value chain of the marine products sector in the country. As the fundamental building block in the marine products value chain, aqua farmers needed to be assured with a decent and remunerative income in a sustainable manner.
Sustainable Aquaculture:
The practice of sustainable aquaculture holding great potential for enhancing the farmers’ income has been proven successful in many places. The best example is Ecuador. The emergence of the tiny South American country as a powerhouse in shrimp aquaculture production in the past few years by adopting sustainable aquaculture has gained worldwide attention. Ecuador's success was due to the farmers, policymakers and other stakeholders in the value chain joining together to rescue the sector after the devastation caused by disease outbreak and other shortcomings. We needed to study the Ecuador model and develop a sustainable model that suits the agro-climatic conditions and the business objectives of our country. Farmers, feed makers, hatchers, policymakers, processors and exporters need to be involved in the process so that the existing value chain could be further strengthened and enhanced.
The Union government has designed several schemes as part of the policy initiatives based on the Blue Economy vision at the national level. There is an urgent need to spread the message of these policy initiatives and the schemes at the state and district levels so that the catchment area of the beneficiaries could be widened further. The linkages between the agencies implementing these schemes and the farmers deserve to be further strengthened. The farmers and other stakeholders in the value chain need to be trained to improve their skill sets in handling the financial instruments and incentives offered by various government agencies. For instance, people in the aquafarming sector remained largely unaware of the advantages of adopting green energy systems and the long- term benefits associated with such initiatives.
Domestic Market:
Apart from the export market, the Indian marine products sector also needs to develop a focused approach for catering to the requirements of developing a domestic market. As one of the fastest growing economies with a vibrant middle class with sufficient disposable income, India is a huge market for high-quality and safe protein foods. The technological advancements in storage facilities and improvements in transportation infrastructure have opened immense possibilities for developing a robust domestic market. The signs of an emerging domestic market are already on the horizon. The Indian aquaculture sector needs to focus attention on this emerging possibility and develop the necessary linkages. A well-developed domestic market will also act as a catalyst for a stable price regime as it would help in absorbing the fluctuations in the international markets.
The experiences of Kings Infra Ventures in the last four decades have revealed the importance of following a sustainable practice to ensure a decent remuneration for the farmers. The policymakers need to address the average revenue per farmer that prevails in the aquaculture sector in the country so that we could develop policies to improve the farmers’ income in tune with the increase in the volume and value of exports. The success in export depends on the efficiency of farmers. The immediate task before us is to develop a policy environment that would be taking care of the needs of the two pivots of the marine products sector – farmers and exporters. The successful practice of such a policy environment would help the marine products sector grow by leaps and bounds in a country with such diversity and potential. The success in achieving nearly Rs 64,000 crore worth exports in a relatively difficult year is a sign of the hidden potential of the country. Sustainable aquaculture is going to be the decisive component of that great potential.
(The author is the chairman of Kings Infra Ventures Limited who also writes on the blue economy and sustainable food production system. Views expressed are personal)
