India has exported nearly $6.3 billion (around Rs. 45,000 crores) worth of marine products in FY2019. The sector reported a CAGR of 13% between FY2010 to FY2019. However, it declined by 9% from FY2018 to FY2019 (in shipment value terms), even though shipments grew 18% in volume terms over this period, the US-based trade finance company Drip Capital said in its latest report.
Andhra Pradesh is the top marine exporting state in the country with an impressive CAGR of 15%, followed by Gujarat and West Bengal with almost a CAGR of 10%, roughly at par with the country’s overall growth. Other contributing states are Kerala and Maharashtra.
In terms of the export market, the US is the largest market for Indian shrimp while China and Vietnam are the largest importers of Indian frozen fish and molluscs, respectively. Together, these three countries make up about 50-60% of India’s marine export market. However, with the tightening of regulations by the US Food and Drug Administration (FDA) and the National Oceanic & Atmospheric Administration (NOAA), Indian shrimp exporters are now sailing amid choppy waters.
“Indian shrimp exports to the US face stringent quality checks and scanning along with a hike in anti-dumping duty to 2 .34% from 0.84% in 2018, which has had a negative effect on the shipment volumes,” noted Drip Capital report.
Other factors impacting Indian marine exports include a change in consumer preferences and an increase in quality consciousness in traditional markets for marine exports like the EU. This has led to the implementation of tougher norms in these regions, which has further increased the pressure on Indian exporters, the report said. On the other hand, amid the US-China trade war, China is also opening as a potential market for Indian marine exporters. This could also translate into further growth possibilities for Indian marine exports in East Asia, the report said.