Aquaculture is one of the fastest-growing sectors globally, and India accounts for about 15 per cent of global aquaculture production. Despite the strong position and positive growth potential, the sector is fraught with challenges. India is yet to catch up with its global counterparts in quality infrastructure, tech adoption, and financial inclusion.
However, recent trends and export volumes suggest an impressive story. The Indian aquaculture industry is at the cusp of a positive transformation. The country’s vast coastline of over 7,500 km and its 2.36 million hectares of ponds and tanks make India the second-largest contributor in the global aquaculture market. While several industries were battling the brunt of a global pandemic, India exported over 11 lakh tonnes of seafood in 2020-21 fiscal amidst mounting challenges.
These numbers are a strong indication of the ‘sea-change’ that the sector is poised to witness in the coming years.
Government initiatives
Several initiatives by the Centre and various State governments are now playing a crucial role in the growth of aquaculture in India. In 2020, Prime Minister Narendra Modi launched the Pradhan Mantri Matsya Sampada Yojana (PMMSY) for five years, i.e., 2020-21 to 2024-25, to augment production and help realize the export potential of India’s aquaculture industry. The scheme aims at enhancing shrimp production and achieving an ambitious target of producing 1.4 million tonnes by 2024.
In line with this, the States are promoting the latest technologies to drive market growth by improving productivity. Further, as part of the Budget 2022, the government reduced the import duty on certain input products for shrimp aquaculture from 30 per cent to 10 per cent. This move will give some impetus to India’s shrimp production as it will bring down the production costs for farmers. It will also aid the industry in importing more, leading to increased production output.
In 2020, the market attained a volume of 0.71 million tonnes. Reports suggest that it will grow at a CAGR of 9.5 per cent and reach 1.23 million tonnes by 2026. Currently, West Bengal tops the list of tiger shrimp production with 19,190 tonnes of produce in 2021. With a major expansion of inland aquaculture farms along rivers in Andhra Pradesh (where people once raised crops), the State will become one of the top shrimp producers in the country.
Not just the imports, steps taken by the government and technological advancements will also increase the export volume of shrimp for India. With the protein demand rising in the US, the country imported 8,93,644 tonnes of shrimp in 2021, marking a 20 per cent growth year-on-year. India is currently the largest shrimp exporter to the US, and the exports increased by 25 per cent in 2021 compared with 2020.
2022, a breakthrough year for Black Tiger shrimp
Black Tiger shrimps were originally the mainstay of the aquaculture industry before faster-growing vannamei was introduced. However, with the reduction in import duties on aquaculture input products, the import of specific-pathogen-free (SPF) broodstock will further incentivise the aquaculture farmers to grow Black Tiger shrimp. Single species exports have a heavy bearing on the farmers, and diversification will help them overcome the risks of a sudden price crash.
In 2021, production of this species accounted for around 5 per cent of the total production, and this year’s figures are expected to rise significantly, a positive step towards species diversification in aquaculture.
Rising online seafood consumption
The pandemic-induced lockdowns accelerated the adoption of e-commerce alternatives, as a result of which the seafood and meat industry has witnessed an increase in online orders. The advent of the latest technologies and the ease of using them is irreversible. Therefore, this year, we expect a significant rise in the online domestic consumption of seafood. An increase in demand, stable market prices, and increased tech adoption will pull the trigger in the supply chain, leading to higher profitability.
Summing up
Currently, India’s aquaculture exports are largely dependent on a single species. However, with the economy showing signs of recovery, the rise of technology-driven solutions, and species diversification on the anvil, 2022 is slated to be a good year for the Indian aquaculture industry. Other factors like increased global demand, the thrust provided by the government’s new schemes, and a good leap in value-addition in seafood processing will play a pivotal role in achieving the ambitious target of doubling seafood production.
The author is CEO, Aquaconnect. Views are personal.