July 2, 2020
India stands third as largest exporter in the Chinese and Japanese market, hence India has fare chances for further expanding its market globally.
India is the world number one producer of farmed shrimps to mention worldwide and accounts for nearly 6% of the global fish production. And in 2018-19, India exported seafood worth $6.72 billion with a sale volume of 13.92 lakh tons. During 2019, India exported 282,584 tons of shrimps to US import of 698,445 tons which it takes from other exporting countries as well.
The impact was felt severely due to Covid-19 and the associated lockdowns which led to the cancellation of several consignment, delayed payments, and in some cases cut offs, slowdown of cargo movements and likewise difficulty in getting new orders and renewal of existing ones. The uncertainties still persists.
What needs to be seen is the trade and its financial returns during this pandemic period.
The lockdown period in India had major impact on the seafood sector where export is concerned and this slack was not only based on account of logistics issue but also could be judged by the return of migrant workers plus the fishermen who were stranded on the trawlers anchored in mid-sea due to lockdown on the land.
After the unlockdown phase, the Centre had instructed the state and other government bodies to provide all logistical support for the smooth functioning of seafood export sector and it would not be wrong to state that the situation is slowly limping back.
India’s major importer of shrimps is US. The shrimp import from India for April month shows an increase of 25 % every year and this percentage is always on rise with high demand. There are some hitches considering the situation now, the exports are on lesser side but India always has a promising trade to sustain exports even during pandemic. Though slow, it will pick up as soon as the phase is over.
There were some reports regarding farmers maintaining low stocking of shrimps on farms due to lower returns in pandemic. But, in such scenario MPEDA is encouraging farmers to stock their farms and are expecting bigger demands from international markets once the phase phases out. According to MPEDA, during the initial period of lockdown, there was 30-40% reduced stocking but the situation is improving now.
Looking at the international figures of exim trade, China has in the recent past increased its consumption of Indian seafood noticeably. Based on provisional figures, exports to China have increased around 63% in value. Exports increased from $811.14 million to $1321.59 million in 2019-20. China imports seafood worth more than $15 billion.
Japan imports black tiger prawn from India and this trade is increasing significantly with the Indian quality improving. Since India is a major supplier of black tiger shrimps to Japan, the fresh decision of Japan’s health authority to reduce the criteria of sampling of black tiger shrimp from 100% to 30% since April 2020 which will help to enhance the trade; with improved quality. In action to this, there will be an upwelling in demand for Indian black tiger shrimp, which may in turn result in increased prices.
To increase the demand and to meet it at a timely dispatch is the goal for Indian seafood exports. Having a set of goals, MPEDA aims to take Indian seafood exports to the apex of Rs. 1 lakh crore by 2030 and to achieve the target, MPEDA is also planning and always in process in adopting improved technology to increase the aquaculture production to diversify various species of shrimps, to improve the productivity to meet global need.