Trade

India, already a major player in the global seafood industry, has set its sights on becoming an even more significant force in the sector. Anupriya Patel, India’s Minister of State for Commerce and Industry, unveiled an ambitious plan to propel the country’s seafood exports beyond USD 14 billion (EUR 13.2 billion) by 2025.

India, the world’s third-largest fish producer, second-largest in aquaculture, and fourth-largest seafood exporter, has been steadily increasing its seafood exports. Between 2016 and 2021, these exports recorded an impressive compound annual growth rate (CAGR) of 17.2 percent. In the fiscal year 2020-2021, India’s seafood export value more than doubled to USD 6.68 billion (EUR 6.3 billion) from USD 2.9 billion (EUR 2.7 billion) in 2010. For the fiscal year 2022, India is poised to reach USD 8 billion (EUR 7.6 billion) in total seafood exports, despite the global demand dampened by inflation, which has put some strain on the sector.

Minister Patel emphasized a keen focus on the U.S. market, expressing the government’s determination to regain market share there. This ambitious vision is backed by substantial investments and policy measures.

Starting from April 1st, the Indian government is injecting USD 271.7 million (EUR 256.5 million) into its Department of Fisheries, marking a notable 38.4 percent year-on-year increase. Furthermore, the fishery sector will benefit from USD 725 million (EUR 684.4 million) through the newly established Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY), a sub-scheme of the Pradhan Mantri Matsya Sampada Yojana (PMMSY) program. This program, initiated in 2020, has already allocated USD 2.4 billion (EUR 2.3 billion) to promote sustainable and responsible development within India’s fisheries sector.

In addition to these financial commitments, the Indian government has slashed import duties on aquafeed, reducing taxes on fishmeal and vitamin premixes from 15 percent to 5 percent and taxes on fish oil and algal prime from 30 percent to 15 percent. The extension of the export-promotion scheme, the Remission of Duties and Taxes on Exported Products (RoDTEP), ensures that exporters receive refunds on certain taxes and duties, further incentivizing seafood exports.

To bolster India’s seafood promotion initiatives, a central quarantine facility has been established in Chennai, ensuring that shrimp shipments from the country meet stringent pathogen-free standards. Moreover, the Marine Products Export Development Authority (MPEDA) research unit, the Rajiv Gandhi Centre for Aquaculture, will receive funding for a black tiger shrimp Broodstock multiplication center pilot in Visakhapatnam.

As part of India’s commitment to enhancing seafood trade, a conference focused on harmonizing regulations for seafood trading is set to take place in the latter half of 2023, coinciding with India’s G-20 activities. This conference will bring together ambassadors from the top 20 markets for marine products, fostering discussions on improving trade regulations and export prospects for India’s thriving shrimp industry.

In tandem with these efforts, MPEDA has arranged approximately 40 virtual buyer-seller meetings with key trading partners, including Japan, China, Russia, the U.K., Vietnam, Germany, Malaysia, South Korea, Oman, Singapore, and Spain. These meetings aim to strengthen partnerships and expand India’s footprint in the global seafood market. With such substantial investments, policy adjustments, and strategic initiatives, India’s ambitious goal of becoming a USD 14 billion seafood export powerhouse by 2025 appears well within reach.

In a remarkable uptrend, India witnessed a 110 percent surge in the export of soymeal and value-added soy products during the initial six months of the 2022-23 oil year, commencing in October. This substantial growth was primarily propelled by significant purchases made by Vietnam, as well as India’s neighbouring nations, Nepal and Bangladesh.

The Soyabean Processors Association of India (SOPA) reported that soymeal shipments reached 9.99 lakh tonnes for the October to March period in the 2022-23 oil year, compared to 4.74 lakh tonnes during the same period in the previous year.

The production of soyameal during this period also witnessed a notable increase, reaching 48.59 lakh tonnes, compared to 33.52 lakh tonnes in the previous year. However, a slowdown in crushing was observed in March due to reduced market arrivals of soybeans.

According to DN Pathak, Executive Director of SOPA, the dip in soybean prices led farmers to hold stocks, resulting in lower arrivals in March. Consequently, soybean crushing also experienced a decline. Demand for soybean food products was similarly subdued. Pathak expressed optimism, stating, “We expect to meet or slightly surpass the export target for soybean meal, which stands at 14 lakh tonnes.”

Vietnam emerged as a prominent buyer, procuring over 4.34 lakh tonnes of soyameal, accounting for approximately 43 percent of India’s total shipments. Nepal followed as the second-largest buyer, with Bangladesh also featuring prominently.

The United States, Japan, Sri Lanka, and Thailand were among the other major purchasers of Indian soyameal. SOPA has set an export target of 14 lakh tonnes, a significant increase from the 6.44 lakh tonnes achieved in the previous year.

SOPA’s projections for soybean production during the 2022 kharif season stand at 120.4 lakh tonnes. When considering carry-forward stocks of 25.15 lakh tonnes and anticipated imports of 2 lakh tonnes, the total availability is projected to reach 147.55 lakh tonnes.

Market arrivals of soybeans from October to March increased by 26 percent, reaching 77 lakh tonnes compared to 61 lakh tonnes in the previous year. Import figures for soybeans were lower, standing at 1.57 lakh tonnes compared to 2.48 lakh tonnes in the previous year.