India’s seafood industry has long been a cornerstone of its economy, contributing significantly to employment, foreign exchange earnings, and the nation’s culinary heritage. In recent years, the Marine Products Export Development Authority (MPEDA) has been at the forefront of initiatives aimed at enhancing the value proposition of Indian seafood in the global market. By focusing on value addition, MPEDA seeks to diversify export products, increase profitability for exporters, and elevate India’s status in the international seafood arena.

The Current Landscape of India’s Seafood Exports

In the fiscal year 2022-2023, India achieved a milestone by exporting 1,735,286 metric tonnes (MT) of seafood, valued at ₹63,969.14 crore (USD 8.09 billion). This marked an increase of 26.73% in quantity, 11.08% in rupee terms, and 4.31% in USD terms compared to the previous year. Frozen shrimp emerged as the predominant export item, accounting for 40.98% of the total quantity and 67.72% of the total export earnings in USD. The United States and China were the largest importers, with the U.S. importing 275,662 MT and China 145,743 MT of frozen shrimp.

Despite these impressive figures, value-added seafood products currently constitute only about 10% of India’s total seafood exports, translating to approximately USD 860 million. This is modest when juxtaposed with the global value-added seafood market, which stands at USD 34 billion. Consequently, India holds a mere 2.5% share of this lucrative segment.

MPEDA’s Strategic Initiatives for Value Addition

Recognizing the untapped potential in value-added products, MPEDA has embarked on a multifaceted strategy to bolster this segment:

1. Setting Ambitious Targets

MPEDA aims to double the share of value-added products in India’s seafood exports to 20% by 2030. This initiative is driven by evolving consumer preferences in key markets such as the U.S., European Union, Japan, and other Asian countries, where there is a growing demand for ready-to-eat and ready-to-cook seafood products.

2. Capacity Building and Training

To achieve this ambitious target, MPEDA has launched extensive training programs aimed at enhancing the skills of the workforce in seafood processing units. Collaborations with international experts have been established to impart knowledge on advanced processing techniques, quality control, and compliance with global standards. For instance, training sessions conducted with Vietnamese seafood processing experts have provided valuable insights into modern value-addition practices.

3. Infrastructure Development

MPEDA is actively promoting the establishment of state-of-the-art processing facilities equipped with advanced technologies. These facilities are designed to handle a variety of value-added products, including marinated, breaded, and seasoned seafood items. By upgrading infrastructure, the authority aims to enhance product quality, extend shelf life, and meet the stringent requirements of international markets.

4. Policy Advocacy

Understanding the challenges posed by import duties on essential inputs for value-added products, MPEDA is advocating for policy reforms. Exporters have requested the removal of tariffs on items such as breadcrumbs, sauces, pre-dust, coconut shavings, and plastic trays. Additionally, there is a push to increase the import duty exemption from 1% to 3% of the freight on board (FOB) value of value-added exports. These measures aim to reduce production costs and make Indian products more competitive globally.

5. Market Diversification and Promotion

MPEDA is intensifying efforts to explore new markets and expand the reach of Indian seafood. Through participation in international trade fairs, buyer-seller meets, and targeted marketing campaigns, the authority is showcasing the diversity and quality of Indian seafood products. Emphasis is placed on highlighting value-added items that cater to the culinary preferences of different regions.

The Economic Implications of Value Addition

Value addition in seafood processing not only enhances the product’s market appeal but also significantly boosts profitability. Value-added products often command higher prices due to the additional processing, flavoring, and convenience they offer to consumers. By increasing the share of such products in the export basket, Indian exporters can achieve better margins and reduce vulnerability to price fluctuations in the global commodity markets.

Moreover, the development of the value-added segment is poised to generate employment opportunities across the supply chain, from processing plant workers to quality assurance professionals and logistics personnel. This aligns with broader economic goals of inclusive growth and rural development, especially in coastal regions where seafood processing is a primary livelihood.

Challenges and the Road Ahead

While the prospects are promising, several challenges need to be addressed to realize MPEDA’s vision:

• Quality and Safety Compliance: Adhering to international quality standards is paramount. This necessitates continuous training, investment in modern equipment, and stringent monitoring mechanisms to ensure compliance.

• Supply Chain Management: Ensuring a consistent supply of raw materials, especially during off-peak seasons, requires robust aquaculture practices and effective supply chain coordination.

• Market Intelligence: Staying abreast of global market trends, consumer preferences, and regulatory changes is essential for exporters to adapt and innovate accordingly.

• Financial Constraints: Small and medium enterprises (SMEs) in the seafood sector may face challenges in securing the necessary capital for upgrading facilities and processes. Access to affordable financing options is crucial for these players to participate effectively in the value-added segment.

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