India has reached a significant milestone in its seafood industry, recording marine exports totaling Rs 60,523 crore for the fiscal year 2023-24. This achievement reflects robust growth in export volume, despite a notable decrease in the overall value of exports. The latest data reveals an increase in the export of chilled seafood and major fish varieties. However, the decline in export value raises concerns about the sustainability of this growth. The United States and China remain primary destinations for Indian marine exports, underscoring the country’s strong position in the global seafood market.
Growth in Volume, Decline in Value
According to Dr. V Swamy, Chairman of the Marine Products Export Development Authority (MPEDA), India saw a growth rate of 2.67% in marine exports compared to the previous year. In the fiscal year 2022-23, the country exported seafood worth Rs 63,969 crore, comprising 17.35 lakh tonnes. Despite achieving an all-time high in export volume, the total value of exports fell by 5.38% from Rs 63,969 crore to Rs 60,523 crore. In dollar terms, the decline was even steeper, with exports dropping by 8.77% from USD 8.09 billion to USD 7.38 billion.
Substantial Improvement in Export Volume
The financial year 2023-24 witnessed a substantial improvement in export volume, which increased by 40.19% in quantity terms. Despite this, the overall seafood exports amounted to 7.16 lakh tonnes, marking a marginal decline of 0.69% in quantity terms. Tiger prawn exports saw a significant rise, contributing Rs 2,855 crore from 38,987 tonnes exported. However, white-legged shrimp exports, while increasing by 0.33% in quantity, suffered an 11.56% depreciation in export value, reflecting the broader challenges in maintaining export values.
Revenue from Chilled Seafood and Processed Fish
The export of chilled seafood fetched Rs 5,509 crore in foreign exchange earnings, while processed fish and feed exports generated revenue of Rs 3,684.79 crore. Exports of dried fish accounted for Rs 3,061 crore, with a 4.12% growth observed in the exports of surimi and surimi-based products. Crab exports yielded Rs 2,252 crore, and significant increases were noted in the exports of cuttlefish, octopus, fish meal, and live fish.
Record Shipping Volumes Amid Market Challenges
The Ministry of Commerce and Industry highlighted that India shipped 17,81,602 metric tonnes of seafood worth Rs 60,523.89 crore (USD 7.38 billion) during 2023-24. This achievement came despite various challenges in export markets such as the USA, EU, and the UK. “India recorded an all-time high export in terms of volume by shipping 17,81,602 MT of seafood worth US$ 7.38 billion, despite the several challenges in its major export markets like the USA, EU & the UK,” said Dr. Swamy.
Frozen Shrimp Leads the Export but Faces Value Pressure
Frozen shrimp retained its position as the top export item in both quantity and value, earning Rs 40,013.54 crore (USD 4881.27 million) and representing 40.19% of the total export quantity and 66.12% of the total earnings. The USA was the largest market for frozen shrimp, importing 297,571 MT, followed by China with 148,483 MT, the European Union with 89,697 MT, Southeast Asia with 52,254 MT, Japan with 35,906 MT, and the Middle East with 28,571 MT. Despite this, the decline in export value highlights underlying issues in market demand and pricing.
Challenges in Black Tiger Shrimp and Vannamei Shrimp Exports
Exports of black tiger shrimp grew significantly, with a 24.91% increase in quantity, an 11.33% rise in value, and an 8.28% growth in USD terms. However, the broader trend in shrimp exports showed mixed results. A total of 38,987 MT of black tiger shrimp worth Rs 2,855.27 crore (USD 347.84 million) were exported, with China (including Hong Kong) being the largest market, followed by the USA, the European Union, and Japan. Meanwhile, Vannamei shrimp exports increased by only 0.33% in quantity but declined by 11.56% in export value, reflecting market volatility.
Major Export Destinations and Market Dynamics
The USA remained the top importer of Indian seafood, with imports worth USD 2,549.15 million, representing 34.53% in USD value. Exports to the USA grew by 7.46% in quantity and 1.42% in value but declined by 3.15% in USD terms. Frozen shrimp made up 91.90% of the exports to the USA. Black tiger shrimp exports to the USA increased by 35.37% in quantity and 32.35% in USD value.
China emerged as the second-largest export destination, with imports of 451,363 MT worth USD 1,384.89 million, accounting for 25.33% in quantity and 18.76% in USD value. Exports to China grew by 12.80% in quantity but declined by 0.88% in value and 4.21% in USD terms. Frozen shrimp and frozen fish were the major items exported to China, but the overall decline in value underscores the competitive pressures in these markets.
India’s seafood exports have reached an all-time high in volume, but the decline in value indicates significant challenges. Enhanced product quality and expanded market access strategies have been pivotal in achieving high volumes, but addressing the decline in export value will be crucial for sustaining growth in the global seafood market.
