Fisheries and Aquaculture Sector in India

Business Opportunities in Fisheries and Aquaculture Industry

By admin
2 years Ago

Introduction:

What makes fisheries and aquaculture business in India such an attractive investment opportunity? In the last few years, rapid growth has been seen in this sector which includes fisheries, aquaculture, processing, cold storage and allied services. Developments across all these segments have enabled India to grow into one of the world’s largest seafood producers and suppliers. Fisheries contribute to nearly 12% of the total agricultural GDP in India. Indian fisheries sector provides employment to more than 14 million people, out of which 7 million are dependent on fishing as their main source of livelihood.

According to the Food and Agriculture Organization (FAO), about two billion people worldwide rely on fisheries and aquaculture as their primary source of animal protein, and the sector generates about 50 million jobs worldwide. In India, the fisheries and aquaculture sector provides direct employment to 1.6 million people while generating more than one million tonnes of fish annually, according to the United Nations Conference on Trade and Development (UNCTAD). Even though only about 35% of fish consumed in India is produced domestically, the country’s fisheries and aquaculture sector offers tremendous growth potential, especially in coastal areas that depend on this industry.

Visit this Page for More Information: Start a Business in Fisheries and Aquaculture Industry

Business Opportunities

Business opportunities abound in the fisheries and aquaculture sector of India. [1] The country possesses enormous marine and inland water resources, which are being utilized by the various stakeholders of the fisheries sector in different ways to cater to the requirements of domestic as well as export markets.

[2] The industry has already contributed significantly to employment generation and exports, with focus on research and development activities towards improvement of existing practices and development of new technology to ensure sustainable supply of high quality products to meet growing demand from both national and international markets, both in terms of volumes and value addition.

Fisheries & Aquaculture Sector

Fueling Global Protein Demand in the Future

In 2050, the world’s population is predicted to reach 9.8 billion people, putting even more strain on existing food resources. The aquaculture business has the potential to play a critical role in meeting the world’s growing protein need.

India is the world’s second-largest producer of fish, with the aquaculture sector accounting for roughly 68 percent of the country’s total fish production. In terms of employment, the sector employs around 28 million people in India, primarily from marginalised and vulnerable groups. The fisheries sector earned $6 billion in exports in 2020-21.

The Department of Fisheries, Ministry of Fisheries, Animal Husbandry and Dairy, is implementing a flagship scheme called “Pradhan Mantri Matsya Sampada Yojana (PMMSY) – A scheme to bring about Blue Revolution through sustainable and responsible development of the fisheries sector in India” with the highest ever investment of INR 20,050 crore for a five-year period, beginning in fiscal year 2020-21 and ending in fiscal year 2024-25 in all States/Union Territo (UTs).

China, the United States, Southeast Asia, the European Union, and Japan are India’s leading export destinations for fish and fish products.

Since 2014-15, the fisheries sector has shown excellent double-digit yearly growth of 10.87 percent, with record fish output of 145 lakh tonnes in FY 2020-21. (Provisional)
In FY2020, inland fisheries contributed 74% of fish production, while marine fisheries contributed 26%.
In the fisheries and aquaculture sector, 28 million fishers and fish farmers are employed at a primary level. 100 percent FDI is allowed in the pisciculture and aquaculture sector in India under the automatic route.

For further details, please refer FDI Policy

Read Similar Articles: Fisheries and Aquaculture

Technological Innovations:

Due to technical advancements, the sector has been increasing at a 6.25 percent annual rate. For example, a technique known as “Seawater Vertical Integrated Multi-Trophic Aquaculture” (SVIMTA) has increased the profitability of prawn farming. It works by combining fish, mussels, shrimp, and prawns into a single system, allowing for increased output without sacrificing quality. Cold-water fish such as salmon and trout are also in high demand. A number of businesses have invested in the development of these technologies. Furthermore, Indian firms have the opportunity to collaborate with foreign firms that have already established operations in the country.

This will allow them to not just tap into India’s potential, but also to develop new goods using locally sourced ingredients. This would lower their costs and enhance their profits even more. Private investors have accounted for the majority of fisheries investment thus far. However, government agencies like as NABARD and state governments have begun to offer financial support to farmers who want to upgrade their equipment. According to NABARD estimates, approximately 60% of loans received by fishermen are from private lenders with outrageous interest rates ranging from 30% to 40%. Furthermore, banks prefer to lend to larger groups as opposed to individuals or small groups.

Read our Books Here: Livestock Farming, Development (Sheep, Pig, Goat, Rabbit), Poultry Farming, Animal, Cattle & Poultry Feed, Fodder, Fisheries and Aquaculture, Fish, Meat, Pork Processing

INDUSTRY SCENARIO

Frozen Shrimp and Frozen Fish are India’s top marine exports, but as the population grows, so does the strain on available resources to meet the growing need for a nutritious diet. The fisheries and aquaculture industries are critical to addressing the increased need for protein.

10.43 million metric tonnes of inland fisheries production in FY 2020
3.72 million metric tonnes of marine fisheries production in FY 2020
$1.56 million in ornamental fisheries exports in FY 2020 Thailand, UAE, Singapore, Hong Kong, China, Jordan, and Taiwan are the top exporting destinations for Ornamental Fisheries. States with large breeding units for Ornamental Fisheries include Tamil Nadu, Maharashtra, Kerala, Rajasthan, Madhya Pradesh, Himachal Pradesh, and West Bengal.
1548 total fish landing centres
654 cold storages with a capacity of 402,949.38 MT
42 chilled storages with a capacity of 23,267.80 MT
90 dry fish storages with a capacity of 30,151.92 MT
Fishing Harbours Under Sagarmala – The Ministry has sanctioned 17 fishing harbour projects worth INR 1740.26 Crore under the Sagarmala Programme.

Growth Prospects

The Indian seafood business is expanding at a rate of approximately 15% per year. Seafood demand is steadily rising around the world. This has resulted in a rise in aquaculture practises around the world. Because fish may be farmed in both fresh and sea water, India’s aquaculture business has a lot of room for growth. Fish fed prawn feed generate ten times as much as those fed natural food sources. As a result, there is a lot of room for improvement in terms of cultivation methods. Consumption habits are also shifting as a result of increased disposable incomes and changing lifestyles. As a result, there is a fantastic potential for entrepreneurs who wish to create their own fisheries or aquaculture firm.

DRIVERS OF GROWTH

Demand-side drivers

Fish is a low-cost, high-protein, high-mineral, and high-vitamin source. Changing one’s lifestyle and eating habits to include a more animal-based diet. As the world’s population grows, so does the demand for protein.

Drivers on the supply side

Diversified fisheries resources are implied by a diverse set of water resources. In terms of fish and shellfish species, India accounts for 10% of global biodiversity. The EEZ of 2.02 million square kilometres and the underdeveloped interior waterways provide enormous possibilities.

Policy support

INR 7522.48 crore Fisheries and Aquaculture Infrastructure Development Fund (FIDF) policy support Pradhan PMMSY (Mantri Matsya Sampada Yojana) – INR 20,500 Cr. INR 10900 Cr. Production-Linked Incentive Scheme for the Food Processing Industry FDI Policy: In pisciculture and aquaculture, 100 percent FDI is allowed via the automatic route.

Download PDF: Fisheries and Aquaculture Sector in India: Business Opportunities in Fisheries and Aquaculture Industry

TRENDS IN THE INDUSTRY

India wants to increase fish production to 22 million tonnes by FY 2024.
Consumption of fish per capita
By FY 2024, India wants to increase fish intake per capita from 5 kg to 12 kg.
Productivity in Aquaculture
By FY 2024, India wants to increase aquaculture productivity from 3 tonnes per hectare to 5 tonnes per hectare.
By 2021, the export of marine products is expected to surpass INR 1 lakh crore.

Some Useful Links: