Detail Project Report Fisheries NFPD India

8/4/2019 Detail Project Report Fisheries NFPD India

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: INDEX :

EXECUTIVE SUMMERY ..... 6

CHAPTER 1:INTRODUCTION, OBJECTIVES AND METHODOLOGY

1.1 INTRODUCTION: .141.2 OBJECTIVE OF THE REPORT .151.3 METHODOLOGY .16

CHAPTER 2BACKGROUND OF INDIAN FISH INDUSTRY

2.1 Fishery Sector - Indian Scenario .182.1.1 Total fish production in India ....18

2.1.2 Fish production from marine and inland sectors in India ....182.1.3 Gross domestic product of agriculture and fisheries sectors in India ....192.1.4 Percentage share of fisheries to agricultural sector in India ....192.1.5 Capital formation and output of Indian fisheries sector ....202.1.6 State wise available water-bodies in India for fish production ....212.1.7 Statewise marine fish resources in India ....222.1.8 Fish seed stocks (fry) production in India ....232.1.9 State wise fish production in India ....242.1.10 Global and Indian fish exports ....252.1.11 Share of Indian fish exports in world trade ....262.1.12 Growth in fisheries export and integration with international trade ....26

2.1.13 Fisheries contribution at a glance ....272.1.14 Marine Fisheries sector ....272.2 Mariculture ....282.3 Shrimp Farming ....282.4 Availability of quality feed ....282.5 New Emerging export product / markets for fish/fish products ....292.5.1 Development of Tuna for sashimi market ....292.5.2 Ready to eat/ready to serve value added products ....292.6 Demand for fish / fishery products ....292.6.1 Projected fish demands in India by Year 2010-11 ....30

2.6.2 Projected sector-wise fish supply in India by year 2010-11 ....302.7 The Government of India programs for fisheries development ....322.7.1 On-going Fisheries Schemes of the central/state Governments ....322.7.2 Other organizations working in the sector ....362.8 World fisheries scenario ....362.8.1 Captive production of species ....362.8.2 Projected production ....382.8.3 Marine food products-World trade ....392.8.4 Indian status in global fisheries ....39


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CHAPTER 3 :

PROBLEMS, CONSTRAINTS AND POSSIBLE SOLUTIONS FORFISH PRODUCTION / PROCESSING SECTOR IN INDIA.

3.1 Problems and constraints .....403.2 Required reforms / changes in the sector .....43

3.2.1 Food Quality And Safety Requirements .....453.2.2 Processing of Fish waste products .....453.2.3 Harvest and post harvest infrastructure .....463.2.4 Marketing of fish/ fish products .....463.2.5 Processing of fish/fish products .....473.2.6 Utilization of fish Catches .....483.2.7 Major Conclusions .....483.3 Suitable strategies for improvement and development .....493.3.1 Major promising areas for fisheries development .....503.3.2 Value addition for fish/fish products .....51

CHAPTER 4 :

MARKETING STRUCTURE AND STATUS OF INDUSTRY

4.1 Status of the fish processing/export industry .....524.2 Market structure .....534.3. Export trends .....54

CHAPTER - 5

FIELD SURVEY REPORT

5.1 Coverage: Field Study ---555.2 Questionnaire No.1. : ---55

Assessing Availability of Raw Material and Potential for Strengthing ofBackward Likage for Fish Processors:

5.3 Questionnaire No.2: ---56Assessing The Present Status of Fish Processing Industry, Level of ValueAddition, Utilisation of Installed Capacities, Quality Issues and ConstraintsFaced By The Industry

5.4 Questionnaire No.3 : ---58

Associations of Fish Producers/Processors5.5 Questionnaire No. 4: For Institutional Research and Training Work ---595.6 Questionnaire No. 5: .60

Development Programmes Of State Fisheries Departments And Corporations5.7 Questionnaire No. 6 ---64

Market Assesment / Forward Linkage


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CHAPTER 6

NFPDB- SWOT ANALYSIS AND KEY FACTORS FOR SUCCESS OF THEBOARD AND ENIVIRONMENTAL AND SOCIAL ISSUES

6.1.1 Swot Analysis .656.1.1 Strengths: .656.1.2 Weaknesses : .656.1.3 Opportunities : .666.1.4 Threats : .676.2 Key Factors for the Success of the Project: .676.3 Environmental and Social Issues

CHAPTER 7 :

ESTABLISHMENT OF THE NATIONAL FISH PROCESSING

DEVELOPMENT BOARD (NFPDB)

7.1 Background and necessity for establishing a new board for fish meat/processed fish products sector .....69

7.2 Scope and activities of the NFPDB .....697.3 Objectives and functions of the NFPDB .....707.4 Proposed development programs for the NFPDB .....737.4.1 Monitoring and Evaluation of the NFPDB schemes .....737.4.2 Suggested programs for the NFPDB .....737.5 Major missions and goals of the NFPDB .....767.6 Location of the NFPDB .....777.6.1 Head Office .....777.6.2 Regional offices .....777.7 Registration of the NFPDB .....787.8 Constitution of the NFPDB .....787.9 Organization structure and management of the NFPDB .....797.10 Capital investment and sources of income and revenue for the NFPDB .....807.10.1 Capital investment .....807.10.2 Sources Of Revenue For the NFPDB .....807.11 Specific action plan for the MOFPI (Nodal Agency) to set up the NFPDB .....817.12 Short and long term action plan for the NFPDB .....82

7.13 Physical program of items to be taken up on priority for 1 year and for5 years by the NFPDB .....85

CHAPTER 8 :

FINANCIAL OUTLAY FOR SETTING UP THE NFPDB

8.1 Evaluation parameters for financial viability .....878.2 Capital cost, recurring costs and means of finance to set up the NFPDB .....878.2.1 Establishment of offices .....888.2.2 Preliminary and pre-operative costs .....918.2.3 Recurring costs .....928.3 Income/revenue .....95


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CHAPTER 9

RECOMMENDATIONS

9.1 Development of Fish Production/Processed Fishery Products Industry forDomestic Retail/International Markets ----99

9.1.1 Production of fish: ---1009.1.2 Fishery product processing zones: ---1019.2 Marketing of Fishery Products ----1019.2.1 Market Surveillance 1019.2.2 Facilities for Domestic Marketing9.3.3 Eat fish for health awareness programme ----1019.3.4 Processed Fishery products Promotion ----1019.3.5 Market Access Program (MAP) --- 101

LIST OF FIGURES

Fig. 1 Total fish production in IndiaFig. 2 Fish production from marine and inland sectors in IndiaFig. 3 Gross domestic product of agriculture and fisheries sectors in IndiaFig. 4 Percentage share of fisheries to agricultural sector in IndiaFig. 5 Global and Indian fish exportsFig. 6 Share of Indian fish exports in world tradeFig. 7 India : Marine and inland fish production (1950-2008)Fig. 8 Projected fish demands in India by Year 2010-11Fig. 9 Projected sector-wise fish supply in India by year 2010-11

LIST OF TABLES

Table 1 Financial Viability:The year wise projected incomeCapital formation and output of Indian fisheries sector

Table 2 Inland Water Resources of IndiaTable 3 Area of water bodies and percentage of major states Table 4 Marine Fisheries Resources of India Table 5 Fish Seed Production

Table 6 State-wise Fish Production during the period 2002-03 to 2007-08Table 7 Fish products and percentage in major statesTable 8 Export & production during VIII, IX & X five year plan Table 9 Contribution of fisheries sector.Table 10 Projected sector wise fish supply in India (2011-12)Table 11 Product of various species (1999-2005)Table 12 Sectorwise projected production.Table 13 Export of marine productsTable 14 Coverage: Field StudyTable 15 Member of the NFPDBTable 16 Total non-recurring and recurring cost and grant required for the

NFPDBTable 17 Sources of funds for the NFPDB


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Table 18 Office EstablishmentsTable 19 Projected expenses on Office Establishment, detailsTable 20 Preliminary and pre-operative costs Table 21 Capital costs - Summery Table 22 Proposed remunerationsTable 23 Projected strength and salary of head office divisionsTable 24 Manpower and remuneration of sixth regional offices

Table 25 Total salary, yearly increment, welfare and administrative expensesTable 26 Recurring administrative expenses of the boardTable 27 Revenue generation and estimation Table 28 Self sufficiency/sustainability


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EXECUTIVE SUMMERY

BACKGROUND:

Fish production plays an important role in the socioeconomic lifeof India. It is a rich source of protein and high quality food. It isalso an important source for income and employment to millions ofrural farmers, particularly women. With a large human populationin India and over 250 million economically strong potentialconsumers of food and those who have an adequate purchasingpower, the domestic demand for the fish and processed fish food isincreasing very rapidly.Marine products have created a huge demand in the world market.With the high unit value, seafood has been acclaimed as one of thefastest moving commodity in the world market. The world market

for seafood has doubled within the last decade reaching US $49.32billion. India's share is only 2.4% at present, it is mainlydependant on shrimp as a product. However, the situation ischanging due to the increased attention/ demand for other fisheryresources like squid, cuttlefish, fin fish, etc. and is being exportedto the markets of Western Europe and South East Asia.

Globally, fish production from capture fisheries and aquaculturewas over 130 million tons in year 2000 as compared to nearly 20million tons in 1950.

Indian share in global production has reached 4.36% per cent with9.92% share in inland and 2.8% in marine. For inland sector Indiais ranked second after China. Other major producer countries areChina, Japan, the United States, the Russian Federation andIndonesia. There is a steady increase in the exports indicating apositive trend.

Demand for fish and fishery products is increasing considerably,both at domestic and export fronts. The projected demand for fishin the country by 2012 is 9.74 million tonne, that can be met by

the projected supply of fish is 9.60 million tonne by 2012 withmajor share of 5.34 million tonnefrom inland aquaculture followedby 3.10 million tonne from marine fisheries. Presently, fisheries ofthe island systems, Andamans and Lakshadweep, as well as thedeep sea resources, including the tunas, are highly under-exploited.

To encourage the fish producers, processors, exporters, etc., theGovernment of India, Ministry of Food Processing Industries(MOFPI) has desired to constitute and set up a national boardcalled the National Fish Processing Development Board (NFPDB).


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CONSTRAINTS OF SECTOR:

For all round development of fisheries sector, it is necessary to:implement the code of conduct for responsible fisheries; utilizestrong traditional wisdom and know-how by active communityparticipation; address gender issues; strengthen the capacities offishers and aqua-farmers regarding latest technological practices,administrative skills, disaster management, etc.; intensify effortsfor treating aquaculture at par with agriculture; explore areas ofpublic-private partnerships; strengthen the institutional creditsupport and public investments; harmonise fisheries policies inconcurrence with the recent developments both at national andinternational levels; and strengthening the inter and intra linkagesbetween fisheries sector and other concerned line departments.

Other concerns and issues are water availability and allocation,

biodiversity loss & depletion of fish stocks, excess coastal fishing,enhancing fish productivity, oceanic and deep sea fisheries, impactof climate change on fisheries, trans-boundary fisheries issues,inland & coastal pollution, large-scale sedimentation of rivers,estuaries & lakes, effective compliance of code of conduct ofresponsible fisheries, ever- increasing input costs of water andpower, high marine fishing costs & low profitability, mechanizationin fisheries and aquaculture, cold chain and hygienic fishhandling, quality assurance issues in production , processing andexports, overseas market fluctuations, disaster management,availability of bank credit and insurance, inadequate database andpoor linkage in domestic marketing.

High perishability of fish coupled with poor post-harvest handlinghas lead to high losses, even to the extent of 15%, in both marineand inland fisheries. Therefore, strengthening of post-harvestinfrastructure in form of better fish landing and handling facilities,cold chains, storage facilities, ice plants, transportation, etc., as well as effective marketing system in identified areas is a keyrequirement for the development of this sector

The above mentioned constraints have to be removed for achievingall round development of the fish processing Industry. Therequired reforms and changes discussed in detail in chapter No.3

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REQUIRED REFORMS/ CHANGES IN THE SECTOR:

Required infrastructure facilities have to be created to resolve theabove mentioned problems.

The existing fish producing/ processing houses have to bemodernized. Infrastructure for fish markets for trading of fish/ fishproducts has to be created.

A massive effort is required to provide financial incentives andbank loans for establishing fish production and fish meat


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processing plants and for utilization of waste materials for

processing to produce by products like processed dried fish meal

with value addition which can be used as a protein supplement in

poultry feeds. Fish markets should be developed in major cities having a high

quantum of sale of fish/ fish products. These markets need to be

modernize.

The trend seen in other food items that in India, consumerpreference is increasing for clean, safe, hygienic nutritious

and properly packed, labeled and presentable food items.

Moreover, with the liberalization of international trade and tariff

under WTO agreement , the domestic products will have to face

serious competition from the imported products .Locally produced

fish/fish products will have to fall in line and producers and

marketing agencies will have to improve their products. Presently the utilization of the installed capacity in the fish

processing factories is only 25% (based on annual working days of

300 days in 2 shifts). If the existing utilized capacity can be

increased to 40% by way of import of raw material for re-export, it

is estimated that India may require an additional annual installed

capacity of 7.68 lakh tons by the end of XI Plan. Import, processing

and re-export of fish will also ensure better capacity utilization.

ESTABLISHMENT OF THE NATIONAL FISH PROCESSING

DEVELOPMENT BOARD (NFPDB):

Fish processing in India is done almost entirely for export. Opensun dried fish and fish meal are the only major exceptions. Atpresent India has freezing units, - cold stores, - ice plants, -canning units and fish meal plants. Capacity of most of theseprocessing and storage units is very low when compared to thefacilities in fish processing industry in technologically advancedcountries. The total fish processing and storage facility in India isgrossly inadequate compared to the potential for fish productionand processing.

Barely five per cent of Indias seafood exports are in processedform. Most exports are in the form of frozen fish. Also, the Indianbrand does not exist in markets of advanced countries. In fact,more than 60 per cent of Indias exports to south-east Asia are re-exported after processing.In view of the above facts and the vast potential for fish processingindustry to cater to the domestic market and supplement theexisting export of processed sea food, it is necessary to constitute aNational Fish Processing Development Board (NFPDB).NFPDB will be an autonomous development agency promoted by

the Government of India under the MOFPI. New Delhi. The NFPDB will work as a facilitator to ensure the smooth and orderly


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development of the Indian fish meat / processed fish productssector.

OBJECTIVES :

The proposed board will be a dynamic, progressive, financiallyviable and development oriented agency promoted by Ministry ofFood Processing Industries.

The board is intended to work as a facilitator to ensure smooth andorderly development of the Sector of the Industry in the country fortaking comprehensive measures for quality and value added fish/processed fish products for domestic and export market.

It will focus on Research & Development, Extension, Quality upgradation, market research and information, domestic and exportmarket for fish/ processed fish products.

It will provide industry linked services including quality testing andcertification, consultancy and support to the start up companies inthe area of fish/ fish products processing.

To facilitate capacity building programmes to develop trained andskilled manpower required for the industry.

Promote, and establish the linkages between the R & DInstitutions/ laboratories and Industry with specific emphasis onexperimental or theoretical research findings that have thepotential for the fish processing industry to improve processefficiency, enhance product quality and, extend shelf-life of fresh

and processed fish products. Promote safe & hygienic production of fish processed products at

par with international standards.

Promote and train producers, manufacturers, entrepreneurs toadopt Good Manufacturing Practices (GMP), Hazard Analysis &Critical Control Points (HACCP) in production.

Regulate the production of fish and processed fish products in thecountry and promote single window service to producers,manufacturers and exporters of fish and processed fish products.

PROPOSED FUNCTIONS OF NFPDB:

It is envisaged that the NFPDB will have following functions:

Promote, establish, manage Modern fish meat/ fish productsProcessing Plants for fish meat/ processed fish productsproduction in India in furtherance of Governments policy topromote exports & domestic sale of fish meat/ processed fish

products with specific emphasis to improve the sanitary &hygienic conditions for their production.


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Initiate, facilitate rearing/ production of highly productive fishesemphasizing backward linkages for fish meat/ processed fishproducts production.

Promote, establish, manage fish markets, to promote domestic saleof fish Meat/ processed fish products.

Promote safe & hygienic production of fish meat & processed fishproducts at par with the international standards including sanitaryand phyto-sanitary (SPS) requirements, transparency in theinternational and national standards, and global trade withoutany discrimination.

Promote fish/ aqua-culture health requirements insynchronization with OIE guidelines.

Regulate the production of fish meat and processed fish productsin the country and promote a single window service to producers,

manufacturers and exporters of fish meat and processed fishproducts.

Promote and train fish meat producers, manufacturers,entrepreneurs to adopt Good Manufacturing Practices (GMP),Hazard Analysis & Critical Control Points (HACCP), ISO-9001:2000in fish meat/ processed fish products production.

Create facilities to utilize the waste material from fish markets/processing houses to prepare fish byproducts with value addition.

To work as a dynamic, progressive and financially viable nodal andautonomous development agency promoted by the MOFPI,Government of India for the development of fish meat/ processedfish products sector.

To work as a facilitator to ensure smooth and orderly developmentof the fish meat/ processed fish products industry in the countryfor taking comprehensive measures leading to quality productionof fish meat/ processed fish products and value added products forthe domestic and export market.

To ensure, as and when required, the necessary participation ofgovernment agencies and R & D institutions, Agricultural Universities, fish meat/ fish product producers, exporters andother entrepreneurs.

To undertake national level planning and policy measures for thedevelopment of the fish meat/ processed fish products industry

To help the existing research organizations to carry out requiredapplied research in production of fish meat/ processed fish

products and help in processing and marketing of fish meat/processed fish products for the overall benefit of fish meat/processed fish products industry of India.


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To promote the co-operative efforts among the fish growers, andprocessors of fish meat/ processed fish products and encouragecontract farming and buy-back arrangements.

To undertake research and development work with the assistanceof the existing institutions on the new technology for production of

highly productive fish/aua-culture for fish meat production and formodernization of process technologies for fish meat/ processed fishproducts.

To conduct training programs with the help of existing and newtraining institutions for the development of skilled personnel forproduction, processing and export of fish meat/ processed fishproducts.

To help the producers, processors and exporters to achieve thedesired quality standards for fish meat/ processed fish products

and fish byproducts.

To assist the fish meat/ processed fish products industry todevelop appropriate extension/ education programs for farmer-producers, meat processors and meat consumers in the country.

To establish co-ordination and liaison with the AgriculturalUniversities, R&D institutes, central and state governmentdepartments, other relevant institutes, development boards,private sector industry etc.

To suggest suitable changes/ modifications in existing policies andother regulations for taxation/excise on fish meat/ processed fishproducts and fish by -products and take suitable measures toimplement the policies.

To suggest suitable measures for collection of requiredstatistical/market data on fish meat production, processing,domestic and international markets and prices and establishMarket Intelligence Service for the stakeholders in the fish meat /processed fish products industry.

To assist exporters to develop export of fish meat/ processed fishproducts and fish byproducts and if necessary carry out domesticand international market surveys to seek the potentials availablein new markets for fish meat / processed fish products.

CONSTITUTION AND LOCATION OF BOARD:

The Board may be set up as a Society under Society Registration Act,1860.

The board will be constituted with the collaboration of Union andState Governments, fish producers, processors, exporters,


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marketing agencies, associations and other related stake holders who would participate in developing and implementing theprogrammes for fish processing sector.

NFPDB will have close liaison with fish product processing andExporting companies. These companies have their head officeslocated at Mumbai. Similarly Mumbai is the major internationalairport and sea port in India from where exports are done.

Therefore it is proposed that head office of NFPDB may be locatedin Mumbai and six regional offices are proposed to cover thefollowing regions:

Northern region Central region Southern region Western region Eastern Region North Eastern region .FINANCIAL VIABILITY:

The NFPDB will require funds for the following:

SOURCES OF INCOME/REVENUE GENERATION IS AS UNDER:

1) Advice / consultancy to companies taking turn-key jobs for fish /fishproducts plants.

2) Market intelligence and data services.

3) Training to fisher folk and industrialists.

4) Publications of magazines and newsletters.

5) Conducting business and technical seminars.

6) Holding study tours.

7) Buyer seller meetings.

8) Tie ups with industries and fisherman and bankers.


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9) Income from quality control lab.

10) Misc. other income.

ESTIMATED INCOME:

The year wise projected income from above sources is as follows:

Year 3rd 4year

th 5year

th 6year

th 7year

th 8year

th 9year

th 10year

thyear

Incomein Lakh

81.94 120.89 159.12 544.27 611.97 679.67 759.87 830.27

Conclusion:

Based on the analysis the board is self sustainable and financially viable on along term basis.


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CHAPTER 1

INTRODUCTION, OBJECTIVES AND METHODOLOGY

1.1 INTRODUCTION:Fisheries is a sunrise sector in Indian agriculture, with highpotentials for diversification of farming practices, rural andlivelihood development, domestic nutritional security, employmentgeneration, export earnings as well as tourism. The possibilitiesextend from vast seas to high mountains with valued coldwaterspecies. Untapped potentials exist in island systems fromornamental fishes to value added products.

Indian fisheries and aquaculture is an important sector of foodproduction. It provides nutritional security to the human foodcontributes to the agricultural exports and engages very largenumber of people in different activities. With diverse resourcesranging from deep seas to lakes in the mountains and more than10% of the global biodiversity in terms of fish and shellfish species,the country has shown continuous and sustained increments infish production since independence.

India is the third largest fish producing country in the world andranks second in inland fish production. The 8,000 km coastline

from both inland and marine resources, 3 million hectares ofreservoirs, 1.4 million hectares of brackish water, 50,600 sq km ofcontinental shelf area and 2.2 million sq km of exclusive economiczone are Indias vast potential resources for fish production.

Fish production plays an important role in the socioeconomic lifeof India. It is a rich source of protein and high quality food. It isalso an important source for income and employment to millions ofrural farmers, particularly women. With a large human populationin India and over 250 million economically strong potential

consumers of food and those who have an adequate purchasingpower, the domestic demand for the fish and processed fish food isincreasing very rapidly.

The sector stimulates growth of a number of subsidiary industriesand is a source of earning foreign exchange. Most importantly, it isthe source of livelihood for a large section of economicallybackward human population of the country.

Fish/ fish processed product sector needs to be developed in anintegrated manner to achieve the targets set by the Government for

overall development of fisheries sector.

In view of the above developments, and to encourage the fish


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producers, processors, exporters, etc., the Government of India,Ministry of Food Processing Industries (MOFPI) has desired toconstitute and set up a national board called the National FishProcessing Development Board (NFPDB). This Board will take aholistic view and an integrated approach to this program andfunction as an independent and autonomous national body to lookinto all aspects of development of fishery sector and for processing,

preservation, and marketing of processed fishery products indomestic and international markets.

MOFPI assigned the task of preparing a detailed feasibility report,Detail Project Report for the establishment of the National FishProcessing Development Board (NFPDB) to M/s MITCONConsultancy Services Limited, Pune.

1.2 OBJECTIVE OF THE REPORTThe objectives and terms of this report are as under:

1.2.1To study the Indian and World scenario of fish sector.1.2.2 To study details about state-wise production

1.2.3 To study the drawbacks and constraints and suggest suitablemeasures for improvement of fish production and processingindustry.

1.2.4 To study measures required to be taken for the formation ofNFPDB.

1.2.5 To study production, demand and market potential for theprocessed products.

1.2.6 To study the existing development plans, schemes, policies withregard to the fish processing industry and suggest suitableimprovements.

1.2.7To study the action program of NFPDB to achieve above mentionedobjectives.

1.2.8 Requirement of technical and supporting manpower requirement ofNFPDB.

1.2.9 Financial implications for establishment of the Board and tosuggest various sources of revenue for the board.

1.2.10Road map of NFPDB for next 5-10 years.1.2.11SWOT analysis of NFPDB.1.2.12 To give recommendations on the basis of the above analysis to

achieve overall growth of the National Fish Processing DevelopmentBoard.


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1.3 METHODOLOGYThe methodology followed was as under:

1.3.1 To collect and analyze the latest data from a number of sources.This data provides the background to the current situation of theproduction of fish and processed products.

1.3.2 Five major fish producing and processing states viz. Maharashtra,Gujarat, West Bengal, Andhra Pradesh and Kerala were selectedfor field survey.

1.3.3 Preparation of suitable questionnaires with following purpose:Following Six Questionnaires were prepared:

a) Questionnaires for fish producers to assess the availability of fish,requirements of fishermen, facilities available to them, constraintsand possible solutions, etc.

b) Questionnaires for fish processors to assess present technology,constraints, possible solutions and the utilization of capacity ofplants and demand for newer products.

c) A short questionnaire for studying the views of associations wascirculated.

d) Questionnaires for R & D and training Institutes to study the areasof work under taken by the institutes and type of training providedto the stakeholders.

e) Questionnaires for Govt. Agencies to understand their support andschemes.

f) Questionnaires for assessing the market needs.1.3.4 Data obtained from the industry on production parameters,

technology, available infrastructure, export volumes, etc.

1.3.5 Meetings and discussions with fish producers, processors,exporters, Research and Training Institutes, Government

Departments from Maharashtra, Gujarat, Kerala, Andhra Pradeshand West Bengal.


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1.3.6 Analysis of data based on the survey carried out by MITCON inabove mentioned States.

1.3.7 Preparation of recommendations, action plan, SWOT analysis, etc.based on discussion with the stakeholders.

1.3.8The methodology also included the collection of secondary data on world trade statistics and trends in processing technologies,required quality standards, production in India and the world,import-export statistics, etc. The required data was collected fromthe libraries of research institutions, journals, magazines, inter-net, and websites and so on.

1.3.9 To undertake a study on the technical feasibility and financialviability for NFPDB. This was done by taking into consideration thephysical and financial requirements and costs of NFPDB and thepossible sources of revenue, with the objective that the NFPDB

should, in the long run, be a self-sustainable and financially viableorganization.

1.3.10The draft report has been prepared based on the inferences drawnfrom the above paragraphs.


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CHAPTER 2

BACKGROUND OF INDIAN FISH INDUSTRY

2.1 FISHERY SECTOR - INDIAN SCENARIO :

A series of data is given below to indicate the present status of thisimportant sector of India.

2.1.1 Total Fish Production in India :

The production increased from 0.75 million metric tons in 1950-51to 6.40 million metric tons in year 2003-04. A particularlysignificant progress in production is noticed from year 2001-2002onwards.

2.1.2 Fish Production from Marine and Inland Sectors in India:

The production has increased in both inland and marine sectorssince 1950-51. The increase was more in case of marine sector ascompared to the inland sector.


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Source : DAHD&F, 2005

2.1.3 Gross Domestic Product of Agriculture and Fisheries Sectors in India:

Fig. 3 : Gross domestic product of agriculture and fisheries sectors in India

Source : DAHD&F, 2005; CSO, 2005

Agricultural GDP increased to ` 550000 crores during the plan period. The

fisheries GDP increased to ` 27000 crores during the same period.

2.1.4 Percentage Share of Fisheries to Agricultural Sector in India;

The percentage share of fisheries in agricultural GDP was 5.34% as of year2004-05.


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Fig. 4 : Percentage share of fisheries to agricultural sector in India

Source: DAHD&F, 2005; CSO, 2005

2.1.5Capital Formation and Output of Indian Fisheries Sector :Table 1 : Capital formation and output of Indian fisheries sector

Source : Estimates based on CSO, 2000 & 2005

Data shows that capital formation and average annual output fromthe sector has increased during the 8th, 9th and 10th Five YearDevelopment Plans of India


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2.1.6Statewise Available Water-bodies in India for Fish Production:Table 2 : Inland Water Resources of India

Source : State Governments / Union Territories

The total suitable available water bodies for fish production inIndia cover an area of 73.59 lakh ha. The state wise water bodiesin 5 major states in order of their ranking are as under:-


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Table 3 : Area of water bodies and percentage of major states

2.1.7 Statewise Marine Fish Resources in India :

Table 4 : Marine Fisheries Resources of India

Source : Marine Fisheries Census, 2005.

State wise marine fish resources as of 2005, in terms of coastalline, continental shelf, number of landing sites and number ofcoastal villages is given in the table for maritime states of India. This information can be used for focused intervention in marinefisheries development in these states.


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2.1.8Fish Seed Stocks (Fry) Production in India :Table 5 : Fish Seed Production

Source : State Governments / Union Territories.

The production increased from a meager 409 million fry in 1973 to24143 million fry by year 2007-08. However the demand for

quality, disease free, fry/ fingerlings is continuously increasingwhich needs to be addressed quickly.


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2.1.9Statewise Fish Production in India:Table 6 : Statewise Fish Production during the period 2002-03 to 2007-08


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Source : State / Union Territories

The state wise production is given from year 2002-03 to 2007-08.It is increased from 6199.68 thousand metric tons in 2002-03 to7126.83 thousand metric tons in year 2007-08.

The five major states in fish production (in 2007-08) as per theirorder of ranking are as under:-

Table 7 : Fish products and percentage in major states

2.1.10 Global and Indian Fish Exports:

The share of Indian fish exports to the global exports has remainedinsignificant during last several years. In fact, the gap has widenedfurther. This shows that urgent steps are necessary to increaseshare of India in global fishery exports.

Fig. 5 : Global and Indian fish exports

Source: DAHD&F, 2005; CSO, 2005, MPEDA, 2006


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2.1.11 Share of Indian Fish Exports in World Trade:

The share of Indian fish exports in world trade is only about 6.5%.This invites urgent steps to increase the share from India.

Fig. 6 : Share of Indian fish exports in world trade

Source : DAHD& F, 2005; CSO, 2005, MPEDA, 2006

2.1.12 Growth in Fisheries Export and Integration with InternationalTrade:

Table 8 : Export & production during VIII, IX & X five year plan

Source : Estimates based on MPEDA, 2006, CSO, 2000 & 2005

Data shows that the fisheries exports have increased during India's

8th, 9th and 10th Five year Development Plans.


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2.1.13 Fisheries Contribution at a glance:

Table 9 : Contribution of fisheries sector.

2.1.14 Marine Fisheries Sector:

The sector contributes to food security and provides directemployment to over 1.5 million fisher-folks besides othersdependent indirectly on the sector. The estimated total marine

fisher folk population of 3.57 million is in 3,305 marine fishingvillages spread across the coastal States and Union Territories(including islands). Out of them, about 0.90 million are activefisher people, and another 0.76 million fisher people are involvedin other fisheries-related activities.

India's Marine Capture Fish Production:

The bulk of the catch comprises oil sardines, followed by penaeidand non-penaeid shrimp, Indian mackerel, Bombay duck,croakers, smaller quantities of cephalopods, other sardines andthreadfin breams.(CMFRI 2008).Fig. 7 : India: Marine and inland fish production (1950-2008)

Source : FISHSTAT, FAO (2010)


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2.2 MARICULTUREWhile shrimp farming has been a commercial activity in the country,culture of other marine organisms such as mussels and oysters hasnot reached a commercial level. In the recent past, the country has

made a beginning in mariculture particularly in Kerala. Potentialmariculture sites for bivalve farming along the east and west coastsof India have been mapped by CMFRI, Cochin. Mariculturetechnologies for edible oysters, mussels, marine pearl production inpearl oysters, seaweeds, and marine ornamental fishes (damsels,clown fishes and seahorses) are available. This would also enable therequired diversification into non-food fisheries in terms of seaweedcultivation, pearl farming, and so on, with high export potentials.

2.3 SHRIMP FARMING: The major bottlenecks limiting the growth of aqua-culture are thenon-availability of disease free seed and the dependence on singlespecies (Penaeus-monodon). There are about 320 shrimp hatcheriesin the country with an annual installed production capacity of 12billion post larvae (PL). There was however a drop in the requirementfor shrimp seed due to the recurring diseases like White SpotSyndrome Virus (WSSV), Loose Shell Syndrome and MonodonBaculo Virus (MBV) disease. The imminent need is to domesticatethe shrimp and produce Specific Pathogen Free (SPF) seed toovercome the problems. While R&D efforts are in place in thecountry, establishment of bio-secure facility and dedicated seedcenters is an important requirement. Further, the mechanism ofquarantine to screen the imported seed needs to be strengthenedwith centers at major port cities like Chennai, Kolkata and Mumbai.

It is expected that the area of shrimp farming will expand to2,26,000 ha. by the end of XI plan and the expected production willbe of the order of 2,30,000 tons. The shrimp seed requirement at theend of XI plan period will be around 9 billion and this can be met with the existing hatcheries (12 billion annual productioncapacities).

2.4 AVAILABILITY OF QUALITY FEED :There are about 35 feed mills with an annual installed productioncapacity of 1,50,000 tons. However, the feed requirement will go upto 2,25,000 tons accounting for an additional requirement of 75,000tons of feed, that needs to be met by expanding the present capacityor installing new feed mills. It is necessary to remove this singlespecies dependence in brackish water aqua-culture, with othershrimps as well as brackish water fin fishes. Both seed productionon one end and processing and export of new species at the otherwould need to be addressed to achieve the desired diversification inthe culture practices. Fin fish aqua-culture is expected to be taken


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up in about 2,000 ha during the XI plan period, mostly focusing onculture of the sea bass (Lates-calcarifer), with an expectedproduction of around 8000 million tons. At a stocking density of10,000 sea bass seed per hectare, the seed requirement will be 2million. In order to meet this seed requirement, about 20 sea basshatcheries with a production capacity of 10 lakh seed per annumare to be established. Inland saline aqua-culture would assume

greater importance in the coming years, with increasing salination indifferent parts of the country.

2.5 NEW EMERGING EXPORT PRODUCTS/ MARKETS FORFISH/FISH PRODUCTS:

Processed fish products for export include conventional block frozenproducts, Individual Quick Frozen products (IQF), minced fishproducts like fish sausage, cakes, cutlets, pastes, surimi, texturedproducts and dry fish etc. Exports of marine products have been

erratic and on a declining trend which could be due to the adversemarket conditions prevailing in the EU and US markets. The anti-dumping procedure initiated by the US Government has affectedIndia's shrimp exports to the US.

2.5.1 Development of Tuna for Sashimi Market:

In Japan, the consumer supermarket price for Sashimi Tuna is ashigh as US $ 75/kg. Therefore the ultimate aim should be todevelop tuna in the form of Sashimi with a brand name ininternational market. One of the advantages of the Andaman &Nicobar islands is their strategic location close to major world tunamarkets in Singapore and Bangkok. To take advantage of this, PortBlair could be linked by air or sea to these cities, especially fortransport of chilled (-60C) Sashimi grade tuna. Port Blair couldserve as an ideal point for export tuna linking with other ports suchas Kochi, Chennai and Vishakapatnam, similar to the internationaltuna port of Malaysia. Apart from fishing, handling practices arevery important for tuna exports, to retain the texture, in order tocommand the price in export.

2.5.2 Ready to Eat/Ready to Serve Value Added Products:

Facilities for production/ processing of value added products suchas ready-to-eat, ready-to-serve breaded and battered products, etc.are necessary to realize maximum return. It is however, necessaryto have proper MIS and market data.

2.6 DEMAND FOR FISH/ FISHERY PRODUCTS:Demand for fish and fishery products is increasing considerably,both at domestic and export fronts. The projected demand for fishin the country by 2012 is 9.74 million tons, which can be met bythe projected supply of fish of 9.60 million tons by 2012 with major


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share of 5.34 million tons from inland aqua-culture followed by3.10 million tons from marine fisheries. Presently, fisheries of theisland systems, Andamans and Lakshadweep, as well as the deepsea resources, including the tunas, are highly under-exploited.

2.6.1 Projected Fish Demands in India by Year 2010-11.

Fig. 8 : Projected fish demands in India by Year 2010-11

Source: Fisheries Division, ICAR, 2006a

The projected share for fish demand in India is estimated at 60%for domestic consumption, 7% for exports and 33% for otherpurposes. This indicates that focus needs to be given to thedomestic sector which has a very high share in the projecteddemand.

2.6.2 Projected Sectorwise Fish Supply in India by Year 2010-11Fig. 9 : Projected sectorwise fish supply in India by year 2010-11

Source : Fisheries Division, ICAR, 2006a, NCAP, 2006


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The estimated supply is given below. The data shows that thepercentage share of inland fisheries sector is very low and needs tobe substantially increased.

Table 10 : Projected sector wise fish supply in India (2011-12)

Source : ICAR data

Paradigm shifts in terms of increasing contributions from inland

sector and aqua-culture are observed over the years. Marinefisheries, coastal aqua-culture, inland fisheries, freshwater aqua-culture and cold water fisheries significantly contribute to food,health, economy, exports, employment and tourism of the country.

Fish and fish products have presently emerged as the largest groupin agricultural exports of India, with 5.2 lakh tons in terms ofquantity and ` 7,200 crores in value. This accounts for around 3%of the total exports of the country and nearly 20% of theagricultural exports. More than 50 different types of fish andshellfish products are exported from India to over 75 countriesaround the world.

The country has about 429 Fish Farmers Development Agencies(FFDAs) and 39 Brackish Water Fish Farms Development Agencies(BFDAs) for promoting freshwater and coastal aqua-culture.

The present annual carp seed production is to the tune of 20billion and that of shrimp about 8 billion. Along with fish culturefor food production, ornamental fish culture and high value fishfarming are gaining importance in the recent past. It is estimated

that over 2.4 lakh fishing crafts are operating in the Indian coastwith infrastructure of six major fishing harbors, 40 minor fishingharbors and 151 landing centers.

India has developed a strong, professionally qualified, competentand skilled technical manpower in production, processing andmarketing of fish/fish products. Comparatively low-cost skilledmanpower in India is an important asset which is now recognizedthe world over.


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2.7 THE GOVERNMENT OF INDIA PROGRAMS FOR FISHERIESDEVELOPMENT:

With regard to development programs in fisheries and aqua cultureduring the Eleventh Five Year Plan, the objectives are as under:

Enhancing the production of fish from Indian waters on an

environmentally sustainable and socially equitable basis, it isnecessary to address the hitherto unexplored potentials of Indianfisheries e.g. island fisheries and non-food fisheries,conservation of aquatic resources and genetic diversity,preservation of health of ecosystems, increasing profitability offishers and aqua-farmers through an integrated approach fromproduction to consumption. Promoting fish as health food andmeeting the changing requirements of both domestic and exportmarkets, Strengthening of Infrastructure in harvest, post-harvest,value-addition and marketing and upliftment of fishers and aqua-farmers' communities, with gainful employment opportunities and

capacity strengthening.

Major thrust areas for XIth Five Year Plan:-

Optimizing production and productivity, Augmenting export of marine products, Generating employment Improving welfare of fisher-folk and their

socioeconomic status.

2.7.1 On-going Fisheries Schemes of the Central /StateGovernments:

A) Schemes of DAHDF (MOA) in FisheriesDevelopment Sector:

(i) Development of Inland Fisheries and Aqua-culture The centrally sponsored scheme on Development of InlandFisheries and Aqua-culture which is being implemented throughthe State Governments/UT Administrations. It covers all inlandfishery resources available in the country in the form of freshwater,brackish water, cold water, waterlogged areas, saline/alkaline soils

for aqua-culture and capture fishery resources (reservoir/riversetc.). The scheme has six components, viz., Development ofFreshwater Aqua-culture, Development of Brackish water Aqua-culture, Development of Coldwater Fisheries and Aqua-culture inthe Hilly Regions, Development of Water-logged Areas into Aqua-culture Estate, Utilization of Inland Saline/Alkaline Soils for Aqua-culture and Inland Captive Fisheries (Reservoirs/Rivers etc). A newcomponent called Innovative Projects have been recently added forimplementation in the 11th Five year plan.

Development of Freshwater Aqua-culture


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The main objectives of the scheme are to popularize fish farming,creating employment opportunities and diversifying aqua culturepractices and providing assistance to fish farmers with a view tocreating a cadre of trained and well organized fish farmers fullyengaged in aqua culture. In order to boost inland fish production,assistance in the form of subsidy is given to the fish farmers forconstruction of new ponds, reclamation/ renovation of ponds and

tanks, first year inputs (fish seed, fertilizers, manures, etc.),integrated fish farming, running water fish culture, establishmentof fish seed hatcheries and fish feed mills, etc. Assistance is alsogiven to progressive fish farmers for purchase of aerators to furtherenhance the productivity of fish. Financial assistance is alsoprovided for freshwater prawn seed hatchery, laboratory, soil & water testing kits, integrated units for ornamental fish andtransportation of seed in hilly areas.

Development of Brackish Water Aqua-culture

With a view to provide technical, financial and extension support toshrimp farmers in the small scale sector, 39 Brackish water FishFarmers Development Agencies (BFDA's) have been sanctioned inall the coastal states and the UT of Andaman & Nicobar Islands.Since inception of the scheme till 2007-08, about 30,889 ha waterarea has been brought under shrimp culture and 31,624 shrimpfarmers have been trained in improved practices of shrimp farmingand 25664 beneficiaries covered under the program.

(ii) Development of Marine Fisheries, Infrastructure and Post

Harvest Operations

The financial assistance for the development of marine sector isprovided to implement several central sectors and centrallysponsored schemes. Some of them are mentioned below:-

Motorization of Traditional Craft, Safety of Fishermen at Sea:

Early warning system on board a kit consisting of GPS,

communication equipment, echo-sounder and search & rescuebeacon.)

Fishermen Development Rebate on HSD Oil: Oil used by fishingvessels below 20 meter length

Introduction of Intermediate Craft of Improved Design to improvefishing capacity of the small-scale fishing boats in deep sea andbeyond.

Establishment of Operation of Vessel Monitoring System formonitoring, control and surveillance of movement of fishing vesselsin the Exclusive Economic Zone (EEZ).


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Promoting Fuel Efficient and Environment- Friendly FishingPractices: use of LPG kit for use on the out board motors.

Management of Marine Fisheries: Over capacity and over fishingare the two identified major factors contributing to resourcedepletion in marine capture fisheries. Unsustainable fishing

practices, damage to marine habitat and illegal, unregulated andunreported (IUU) fishing are other major activities, which arenegatively impacting the stock levels. Since the exploitation of fishresources in the territorial waters have either reached the optimumlevel or exceeded in certain instances, focus has to be shifted toscientific management of our marine fisheries with development ofappropriate tools and techniques in harmony with internationalguidelines.

This new component aims at initiating science-based managementof marine fisheries. The activities undertaken under this

component include (i) to conduct awareness programs, (ii) toimplement Code of Conduct for Responsible Fisheries (CCRF), (iii)Capacity Evaluation, (iv)to undertake community outreachprograms on sustainable fisheries and (v) Production of Audiovisuals on, over fishing/over capacity.

iii) Development of Infrastructure and Post- Harvest Operations

Establishment of Fishing Harbors & Fish Landing CenterDevelopment of infrastructure facilities for the fishery sector is oneof the important factors that contribute to augmenting marine fishproduction and its exports. In order to meet the infrastructurerequirement, a centrally sponsored scheme, with the objective ofproviding infrastructure facilities for safe landing and berthing oftraditional fishing craft, mechanized fishing vessels and deep seafishing vessels had been initiated in 1964. The facilities createdunder the scheme are fishing harbors and fish landing centers which includes breakwater, wharf, jetty, dredging, reclamation,quay, auction hall, slipway, workshop, net mending shed and otherancillary facilities.

Strengthening of Post Harvest Infrastructure

The scheme is implemented with view to create necessary facilitiesto provide remunerative price to the fish farmers for their produceand available fresh fish at reasonable price to theconsumers. Under this scheme, State Fisheries Cooperative,Cooperative Federation and primary cooperatives are assisted instrengthening their marketing infrastructure facilities.

The scheme has three sub-components namely (i) Developing fishpreservation and storage infrastructure, (ii) Developing retail fishmarketing infrastructure, (iii) Assistance for fish transportinfrastructure and (iv) Development of Central Fish Markets in


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metros and big cities. This program is implemented throughGovernment Undertakings, Corporations, Federations, Marketingboards, Cooperative Societies, Self Help Groups, NGOs, Self HelpGroups of Women, SHGs of SC/ ST, Private Companies owned byfishermen, SCs/STs.

Maintenance of Dredging of Fishing Harbors and Fish Landing

Centers.

The facilities are created for safe landing and berthing facilities forvarious categories of fishing vessels/ crafts. Plying along the coastof the country, A Trailing Suction Hopper Dredger 'TSDSindhuraj' has been procured under the Japanese Grant-in-aidprogram

Taking up of Innovative Activities.

This is a new component introduced with a view to minimize the

post-harvest losses through ideal marketing system. Sincereintroduction of the scheme in Xth plan, 13 ice plants/coldstorage plants, 45 fish retail outlets/kiosks, 31insulated/refrigerated vehicles were setup in the country.

The component consists of four sub-components namely

(i) Developing fish preservation and storage infrastructure,(ii) Developing retail fish marketing infrastructure,(iii) Assistance for fish transport infrastructure and(iv) Development of Central Fish Markets in metros and bigcities.

B. Schemes Taken Up by National Fisheries Development Board(MOA) :

(i) Construction of SPF P. monodon (prawn) MultiplicationCenter:

(ii) Supply of fish seed to farmers(iii Reservoir Fisheries Development: for seed stocking in

reservoirs(iv) Cage culture of Sea bass in open seas:(v) Asian Sea bass demonstration farms through Central

Institute of Brackish water Aqua-culture (CIBA),(vi) L. vannami culture - Support for establishment of

quarantine facility at Chennai:(vii) Tuna processing unit:(ix) Infrastructure for post harvest processing:(x) HRD programs:


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2.7.2 Other Organizations Working in the Sector:

Coastal Aqua-culture Authority (CAA):

The Coastal Aqua-culture Authority (CAA) was established underthe Coastal Aqua-culture Authority Act, 2005 and notified videGazette Notification dated 22nd December, 2005. The main

objective of the Authority is to regulate coastal aqua-cultureactivities in coastal areas in order to ensure sustainabledevelopment without causing damage to the coastal environment.

GOI Institutes for Fisheries Development:

Fishery Survey of India. Central Institute of Fisheries Nautical Engineering & Training. Central Institute of Coastal Engineering for Fisheries. National Fisheries Development Board (NFDB)

Institutes in Fisheries Education and Research Sector underIndian Council of Agricultural Research (ICAR):-

Central Marine fisheries research Institute, Cochin. Central Inland Fisheries research Institute, Bhubaneshwar. Central Institute for Fisheries Education, Mumbai.

Besides above, technology research in fish/processed fish foodproducts is also carried out at the Central Food TechnologicalResearch Institute Mysore (CFTRI)

2.8 WORLD FISHERIES SCENARIO:

2.8.1 Captive Production of Species

The following table shows the captive production by groups ofspecies (fish, crustaceans, molluscs, etc) in tons.

Table 11 : Product of various species (1999-2005)


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Source : FAO STATS

2.8.2 Projected Production The following table shows the fish production in 2004 andprojections for 2015.

Table 12 : Sectorwise projected production.

Note: all figures except percentages are in million tons.Source : FAO STATS.


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2.8.3 Marine Food Products-World Trade

Marine products have created a huge demand in the world market.With the high unit value, seafood has been acclaimed as one of thefastest moving commodity in the world market. The world marketfor seafood has doubled within the last decade reaching US $49.32

billion. India's share is only 2.4% at present; it is mainlydependant on shrimp as a product. However, the situation ischanging due to the increased attention/ demand for other fisheryresources like squid, cuttlefish, fin fish, etc. and is being exportedto Western Europe and South East Asia.

2.8.4 Indian Status in Global Fisheries:

Globally, fish production from capture fisheries and aqua-culturewas over 130 million tons in year 2000 as compared to nearly 20million tons in 1950. The production declined to 117 million tons

in 1998 and has since recovered.

Indian share in global production has reached 4.36% per cent with9.92% share in inland and 2.8% in marine. For inland sector Indiais ranked second after China. Other major producer countries areChina, Japan, the United States, the Russian Federation andIndonesia. There is a steady increase in the exports which indicatea positive trend.


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CHAPTER 3

PROBLEMS, CONSTRAINTS AND POSSIBLE SOLUTIONS FOR FISHPRODUCTION/PROCESSING SECTOR IN INDIA.

3.1 PROBLEMS AND CONSTRAINTS

The fisheries of natural waters, including coastal and inlandsources is under pressure due to high fishing intensities,pollution, open-access, manmade modifications, water abstraction,etc. and lead to problems in maintaining sustainable fisheries. Inthese waters sustainable exploitation of fish stocks can beachieved through community participation and co-management.

Water availability and utilization in an effective manner has nowbecome a matter of concern. Fisheries and aqua-culture provide fordiversification as well as value addition in farming practices. In

case of aqua-culture, scope exists for bringing more fish species with a focus on food fish, ornamental species and those withpotentials for sport and tourism.

Ready availability of inputs like fish seed, feed, fertilizer,medicines, other fisheries requisites, etc. is necessary fordevelopment. Establishment of' Aqua-shops', as a single windowfacility for the purpose is expected to bring about a major changein the sector.

Fish Seed is a critical input for successful culture and culture-based practices. The projected annual requirement of carp seed isto the tune of 34,000 million carp fry, 10,000 million shrimp and8,000 million scampi PL and 2 million sea bass.

The fish feed requirements for freshwater aqua-culture by the endof next plan is estimated at 3.15 million tons for freshwater aqua-culture including grow-out and seed production and 0.23 milliontons for brackish water aqua-culture.

For all round development of fisheries sector, it is necessary to

implement the code of conduct for responsible fisheries; utilizestrong traditional wisdom and know-how by active communityparticipation; address gender issues; strengthen the capacities offishers and aqua-farmers regarding latest technological practices,administrative skills, disaster management, etc.; intensify effortsfor treating aquaculture at par with agriculture; explore areas ofpublic-private partnerships; strengthen the institutional creditsupport and public investments; harmonise fisheries policies inconcurrence with the recent developments both at national andinternational levels; and strengthening the inter and intra linkagesbetween fisheries sector and other concerned line departments.


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Other concerns and issues are water availability and allocation,bio-diversity loss & depletion of fish stocks, excess coastal fishing,enhancing fish productivity, oceanic and deep sea fisheries, impactof climate change on fisheries, trans-boundary fisheries issues,inland & coastal pollution, large-scale sedimentation of rivers,estuaries & lakes, effective compliance of code of conduct ofresponsible fisheries, ever- increasing input costs of water and

power, high marine fishing costs & low profitability, mechanizationin fisheries and aqua-culture, cold chain and hygienic fishhandling, quality assurance issues in production , processing andexports, overseas market fluctuations, disaster management,availability of bank credit and insurance, inadequate database andpoor linkage in domestic marketing.

High perishability of fish coupled with poor post-harvest handlinghas lead to heavy losses, even to the extent of 15%, in both marineand inland fisheries. Therefore, strengthening of post-harvestinfrastructure in form of better fish landing and handling facilities,

cold chains, storage facilities, ice plants, transportation, etc., as well as effective marketing system in identified areas is a keyrequirement for the development of this sector.

Some of the Crucial Problems Facing the Industry areHighlighted Below:-

Problems /constraints faced by the fish farming/ processed fishproducts industry:-

Major portion of fish farming activity is with small and poor ruralfarmers who lack skills and have inadequate physical/financialresources.

Low productivity and/or high incidence of occasional diseaseproblems in fish, particularly the finger lings.

Lack of facilities for proper disease diagnostic, disease surveillanceand advice on sanitation and cleanliness of ponds particularly thepH and adequate water levels.

Inadequate quantity and quality fish seed and fish feed Lack of adequate and timely credit supply to fisher-folk from the

financial institutions.

Inadequate infrastructure for proper processing, packaging,preservation and marketing of fresh/ chilled fish and processedfish products.

Poor maintenance of quality, small quantities of produce, absenceof cold chain and lack of and consistency in supply of fish/fishproducts for exports Constraints, Problems and Bottlenecks of the


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Fish/ Processed Fish Sector/Industry and Their PossibleSolutions:

Markets for selling fresh fish/ fish products are not well developedand lack the basic requirements of cleanliness, sanitation andhygiene.

Poor arrangement of procurement and transporting of fish to themarkets.

Major portion of trade is mostly in the hands of agents andmiddlemen with a very high level of business commission. The fishfarmers have very small quantity of produce and have no financialpower or knowledge of the prevalent market to determine/ dictatethe farm-gate selling price of fish.

Small scale fish cleaning/ dressing facilities at rural/ village levelare not available.

Fish quality inspection at producers' level and in fish

stalls/markets is almost non-existent. The problems of foodpoisoning due to eating of stale fish /fish products are verycommon.

Quality control laboratories for inspection of fish/ fish products arenon-adequate and/or are not well equipped except thoseestablished for exports.

Much of the fish/ fish products do not meet required internationalstandards of hygiene and quality suitable for exports.

Lack of fish Markets having proper infrastructure facilities. Lack of modern fish processing plants with good facilities for

production/processing of clean, wholesome fish meat undersanitation and hygienic conditions.

Lack of infrastructure, facilities and incentives (some availablefrom MPEDA, Ministry of commerce) for processing of fish meat

and its packaging, preservation, storage and marketing. Lack of sanitation and hygiene of fish meat packing /storage

houses and fish meat/ processed fish products shops.

Lack of utilization and processing of wastes/ inedible materials toprepare by-products with value addition.

Lack of implementation of laws for sanitation and hygiene of fishmeat packing /storage houses and fish meat shops.

Main Challenges:


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The main challenges facing fisheries development in the countryinclude the following:

Optimization of production and productivity of fish. Infrastructure development for harvest and post-harvest

operations.

Increased Landing and berthing facilities for fishing vessels. Development of sustainable technologies for fin and shell fish

culture.

Adoption of new and innovative production technologies for aqua-culture, management and effective use of utilized water resourcesand proper market tie-ups.

Development of production from Reservoir fisheries- a majoropportunity to enhance fish production.

In the marine sector, harnessing deep-sea fisheries resources. Increased focus on diversification and high value produce. Proper post-harvest handling, reduction of losses and hygienic

primary processing to realize full potentials.

Effective marketing arrangements to ensure adequate returns tothe fisher folks and make available good quality fish at affordableprices to the consumers.

Developing infrastructure including cold chain facilities forprocuring, processing, packaging, storage and marketing offish/fish products with quality and value addition to cater to thedomestic and export markets.

Provision for processing for both export and domestic markets Improvement of fishing harbors. Effective marketing system in identified areas- a key requirement

for the development of this sector.

3.2 REQUIRED REFORMS/ CHANGES IN THE SECTOR:

The above constraints have to be minimised for achieving all rounddevelopment of the fish Meat/ fish meat products Industry sector.

Required infrastructure facilities have to be created to resolve theabove mentioned problems.


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The existing fish meat producing/ processing houses have to bemodernized. Infrastructure for fish markets for trading of fish/ fishproducts has to be created.

There is an urgent need to provide required infrastructure facilitiesand incentives to the fish meat/ fish products sector for processingfish meat and value added fish meat products.

Greater participation and collaboration between fisher-folk,industry, public and private institutions and other stake holders isrequired.

Schemes to develop rural markets for fish and to remove regionalimbalances need to be implemented.

Covered space for selling live/ dressed fish / fish products,canteen and facilities for dressing of fish, canteen, bank facility,cold storage etc. should be developed.

Massive efforts are required to provide financial incentives andcredit facilities for establishing fish production and fish meatprocessing plants and for utilization of waste materials forprocessing to produce by products like processed dried fish mealwith value addition which can be used as a protein supplement inpoultry feeds.

Fish markets should be developed in major cities having a highquantum of sale of fish/ fish products. Where, infrastructurefacilities should be provided on payment basis to the concernedentrepreneurs. Facilities like unloading ramp, weigh-bridge, supplyof ice for chilling, sale of packaging material, quality inspection,store for fish feed, adequate electricity and water supplyarrangement, bank facility, food canteen etc can be provided.MOFPI may consider providing capital incentives for such schemesand establish tie up with banks for providing financial assistance.

Shops where fish meat/ fish products are sold need to bemodernized. Facilities like tiled floor and walls, fly-proof nets on windows / doors, a platform for cutting/processing fish, selling

counter with weighing balance, UV fly traps, proper drainage fordisposal of wastes, dust bins, adequate water / electricity facility,display board showing selling prices of various products, clean SSknives, a meat cutting block, aprons/hoods/ gum-boots for workers, a deep freezer/refrigerator, good quality packagingmaterial etc. should be available. MOFPI can provide capitalincentives and have a tie up with banks for providing financialassistance.

On the similar lines mentioned in above paragraph, facilitiesshould also be provided to street hawkers (mobile or stationary)selling fish/ processed or ready to eat fish products. MOFPI can


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provide capital incentives and have a tie up with banks forproviding financial assistance.

Some of the important reforms and changes needed in view of thelatest developments in this sector worldwide are highlighted below

3.2.1 Food Quality and Safety Requirements:

In developed countries, new safety standards and codes of practicefor fish/ fish products have been introduced and strictly followed.With the onset of WTO, if India has to compete in the free globaleconomy, similar standards have to be developed and adopted.India can not afford to lag behind in this development.

It is evident from the trend seen in other food items that in India,consumer preference is increasing for clean, safe, hygienicnutritious and properly packed, labeled and presentable fooditems. Moreover, with the liberalization of international trade and

tariff under WTO agreement , the domestic products will have toface severe competition from the imported products .Locallyproduced fish/fish products will have to fall in line and producersand marketing agencies will have to seriously think to improvetheir products.

The Bureau of Indian Standards (BIS) has prepared standards forsafety certification of foods. BIS has launched a scheme for HACCP(Hazard analysis and critical control point) for food industry toobtain IS certification .This will become an important requirementsince many food importing companies from abroad are nowinsisting that Indian exporters adhere to the required standards.Food items will be analyzed against safety standards set forhygiene, quality and bacterial contamination. Sectors, those couldavail the certification include meat, fish poultry and dairyproducts. This certification becomes important in view of the factthat certain items of food from India had to face a rejection onquality considerations.

The demand for properly processed, chilled or frozen packagedfish/ fish products is increasing particularly in large towns and

cities in India particularly in Supermarkets and fast foodjoints/restaurants. Therefore, it is expected that in the next 5 -10 years, these products will have a big demand in the domesticmarket.

3.2.2 Processing of Fish Waste Products:

The wastes from cutting/ processing fish and trash fish unsuitablefor human consumption can be processed to produce dried fishmeal which is used as protein supplements in compound poultryfeeds as well as a fertilizer. These facilities will have to be createdin organized large fish processing plants


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3.2.3 Harvest and Post Harvest InfrastructureThe projected annual growth rate of fisheries sector during XI planis of the order of 5%, with 2.5% in marine fisheries and 8% ininland aqua-culture, with a projected annual fish production to thetune of 9.6 million tons. In order to ensure this, fisheries sector would need to strengthen the infrastructure for both harvesting

and post-harvest handling and processing in a big way. Thisincludes modern deep sea fishing vessels, fisheries harbors bothmajor and minor, other fish landing centers, etc. As the existingfacilities at the harbors and landing centers are inadequate andthe conditions unhygienic, they need to be modernized byproviding additional facilities for storage, icing and handling,packaging and transportation. The additional requirement forharbors and landing centers by 2012 is estimated at two majorfishing harbors, 13 minor fishing harbors and 46 landing centers.

Continuous availability of potable water has to be ensured for

washing and cleaning. Suitable waste disposal mechanisms, raisedplatforms for hygienic handling and packaging of fish andavailability of sufficient quantity of quality ice, etc. are to beensured. Installation of efficient effluent treatment plants to ensureeconomical use of potable water and minimize environmentalpollution is required.

The steps needed to improve harvest and post harvestactivities are:

Information on Market price at landing centers,

Communication towers for deep sea,

Solving law and order problems,

Involvement of private sector at harbors and landing center forrecording of catch statistics etc.

3.2.4 Marketing of Fish/ Fish Products

About 75% of production in the country is marketed domesticallythrough wholesale, major and minor retail (including roadside)markets. These markets are highly un-organized, with someexecution of planned development only in the export sector.Majority of domestic markets are unhygienic and the fish storingand handling facilities are extremely poor. There is lack of propertransportation system including roads, refrigerated vehicles, etc.Facilities of potable water, good quality ice, electricity and wastedisposal system are inadequate. There is considerable time lagduring the transportation of fish from the landing center to theinterior markets which results in poor quality of the material

leading to high nutritional and post-harvest losses.


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The marketing system is rather complex considering that from theproducers' level, the product changes hands through severalchannels - the wholesaler, retailer and vendor to the consumer.Consequently, the primary producer gets a very small share of theconsumer's rupee. There should be a mechanism for eliminating atleast some stages of middlemen and an assured floor price to theproducers. A mechanism to monitor and document food fish borne

diseases is also needed to effectively prevent outbreaks of anydiseases, as is done is developed countries. This is lacking atpresent and many cases fish diseases go unnoticed. The railwayvans, air transport, containers, and cold chain are the essentialcomponents for efficient fish marketing system.

The National Committee on implementation of Code of Conduct forResponsible Fisheries has suggested the following measures topromote and monitor exports and domestic marketing:

Collection of complete details of cases coming before the AppellatePanel of WTO Setting up of a National data center,

Necessary support to trade to fight antidumping, Setting up a network of cold storage plants, refrigerated outlets

and small-scale training units,

Exploring domestic market for a variety of value added productsand related aspects.

During the XI Plan, model markets are to be set up in majorlanding centers. Fishermen can have good solar driers near to thelanding centers to utilize all catches, thereby reducing post harvestlosses.

3.2.5 Processing of Fish/Fish Products;

India exported 5,12,164 tons of seafood during 2005-06 valued at

` 7245.3 crore. During 2007-08, the export registered a growth rateof 11% in quantity and 9% in value. With the proposed additionalinfrastructure provided during XI Plan, an annual growth rate of12% in export has been visualized. Accordingly, the export by

2012 has to go up to 1.13 million tons to fetch foreign exchange ofaround ` 15,000 crores. For achieving this performance, theexisting infrastructure has to be upgraded. Presently the utilizationof the installed capacity in the fish processing factories is only 25%(based on annual working days of 300 days in 2 shifts). If theexisting utilized capacity can be increased to 40% by way of importof raw material for re-export, it is estimated that India may requirean additional annual installed capacity of 7.68 lakh tons by theend of XI Plan. Import, processing and re-export of fish will alsoensure better capacity utilization.

The development of fish processing infrastructure is almostcompletely handled by the private sector. It is therefore necessary


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to prepare suitable scheme with the required incentives and agreater involvement of the private sector.

Diversification of the present shrimp oriented industry andintroduction of new lucrative products like sashimi tuna, oceanicsquids and other similar items is needed.

The National Committee on implementation of Code of Conduct forResponsible Fisheries also suggested measures to promote fishprocessing in the country They include following measures:-

Up-gradation of preprocessing and processing units in a timebound manner

Evolving a suitable mechanism for monitoring the quality of iceproduced by ice plants not attached to processing plants

Monitoring samples of fish, shrimp etc. from farms and from water

bodies susceptible to be contaminated with effluents

3.2.6Utilization of Fish CatchesAccording to MOFPI, the estimated utilization of fish catch is asunder:-

81 % marketed as fresh or chilled product and a major staple foodfor the coastal population and inland landing centers.

6 % utilized for drying and curing.

5.2% utilized for Frozen fish production.

4.7% used for rendering/ reduction to processed fishmeal

The range of value added fishery processed products includeextruded products, battered and breaded products, Surimi andderivatives, pickles and curried products in restorable packaging.

With the changing life-styles of urban consumers, value addedfishery products of different descriptions as 'convenience food' isgaining popularity in the markets.

3.2.7 Major Conclusions:

India has a very large fish production, however the overallproductivity is low. This can be improved by introducing scientificmethods of management including production and supply of highquality fish seed, finger lings, fish feed and extension education tofarmers on scientific methods of rearing fish.


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Average per capita consumption of fish/ fish products in India isstill low as compared with other developed countries. There is agood potential to develop production as the demand is increasingrapidly particularly in the urban areas where there are very largenumber of domestic consumers having a good income to purchasefish/fish products.

India's fish/ fish products exports are comparatively low ascompared to many other developed/developing countries.

India's exports fish/fish product exports are increasing. This canbe further increased by providing infrastructure facilities and byproviding the required incentives to procure, process, package andmarket the fish/fish products in a scientific manner and processfish waste to produce suitable fish byproducts with value addition.Quality of the product and consistency in supply of qualityproducts will be a major input to drive the growth of this sector.

There is an urgent need to provide infrastructure facilities andestablish modern markets for trading fish / fish products , fish/fish product shops and hawkers selling fish/fish products so thatgood quality hygienic fish/fish products could be made available tothe consumers.

Considering above issues, it is necessary to establish anindependent National Fish Processing and Development Board(NFPDB), to take up the required action plans to develop the fish/fish processing/ processed fish product sector.

3.3 SUITABLE STRATEGIES FOR IMPROVEMENT ANDDEVELOPMENT

NFPDB should primarily look after development of fish/ fishproducts processing sector including production, processing,packaging, preservation, marketing and value addition of fish/ fishproduct sector and processing of fish waste to prepare fish by-products like fish meal with value addition.

Other fishery development activities including breeding, diseaseprevention and control and management of fishery which fall

under the preview of the Department of Animal Husbandry,Dairying and Fishery (DAHDF) and National Fishery DevelopmentBoard. (NFDB) under MOA Government of India, It is thereforesuggested that these activities may be looked after by themHowever, the NFPDB should establish a close association/ liaison with the above mentioned Departments so that proper synergiesare established.

The NFPDB should focus its attention primarily on the followingaspects and develop and monitor action plans for implementationof the following:

Fish meat/ fish products production, infrastructure facilities,


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Development of domestic and international sale, exports, importsetc for fish meat / fish products.

Development of fish markets for sale/ trading of fish/ fishproducts.

Development of facilities for scientific processing, packaging,storage and marketing of fish meat/ fish products,

Value added products from fish meat.

Processing of fish wastes for processing into fish byproducts

3.3.1 Major Promising Areas for Fisheries Development:

The areas need to be supported in order to achieve diversificationin terms of non-food fisheries are, ornamental fisheries, seaweed,

pearl culture, aqua-tourism, sport fisheries and mollusk fisheriesfor ornamental purposes.

The strategy for realizing the potentials of the sector are:

Ensuring adoption of responsible and sustainable fishery practicesand enhancing fish productivity in all cultivable waters,

Establishing agro-aqua farms, aqua-shops and fishery estates toincorporate activities from production to consumption,

Spreading fish quality literacy among fishers and aqua-farmers,improving facilities for fish landing and handling at harvest andpost-harvest stages,Developing social marketing techniques,

Introducing reforms with regard to leasing and management ofwaters, ownership and community management and

Training in different aspects of fisheries and aqua-culture.

The proposed post-harvest activities include the following:

Construction of processing plants and new model retail fishmarkets, modernization of wholesale markets, facilities of Transport & insulated containers to societies, provision formarketing (Kiosk) for women SHGs and value addition for SHGs.

The infrastructures required for aqua-culture are as under:-:

Facilities for domestication of Penaeus monodon.

Establishment of SPF- seed multiplication center,


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Holding centers, PCR labs, Sales counters for brood stock Testing facilities for feed, seed & fish.

3.3.2 Value Addition for Fish/Fish Products:

The value addition is one of the major components in increasingthe exports both in quantity and value terms. Value addition infish and fisheries products has great scope for improvement in ourcountry. To facilitate increased value addition, National Committeeon implementation of Code of Conduct for Responsible Fisheriessuggested following measures:-

Improving fish handling and preservation facilities on board fishingvessels

Encouraging fishing boats to have insulated and refrigerated fishholds,

Ensuring quality of the ice,

Imparting training to workers of pre-processing and processingplants on various aspects connected with hygiene, sanitation,handling of raw material and production of value added products,

Modification in the EXIM Policy so as to grant preference to valueadded products over commercial products,

Steps for market promotion of products. Adequate facility for catch handling at fisheries harbours and

landing jetties

Facility for catch preservation such as chilled/cold storage, Setting up small scale projects for production of semi processed

ready-to-cook fish products from low valued fishes, fish pickles,

quality dried products, fish curry etc. by coastal population,promoted by families, unemployed youth, etc.

Post Harvest Processing plants ( primarily in the Private sector), New model retail fish markets, Modernization of wholesale fish markets, Provision of Transport & Insulated containers , Involvement of Women's SHGs for marketing (Kiosk)


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CHAPTER 4

MARKETING STRUCTURE AND STATUS OF INDUSTRY

4.1 STATUS OF THE FISH PROCESSING/EXPORT INDUSTRY

According to the data of MOFPI, there are about 1,273 registeredexporters in the country and the Indian seafood fish processingindustry is well developed. The post-harvest infrastructureincludes around 215 ice plants, 481 shrimp peeling plants, 371freezing plants, 471 cold storage units, 7 canning plants, 16 fish-meal plants, 11 surimi plants, and one agar-agar production unit.Around 95% of the seafood processing units in the country areconcentrated in 20 major clusters in 12 maritime states where fishcatches are highest. All export oriented processing units areHACCP certified.

The total installed freezing capacity of 7,283 tons /day, is fullyutilized only during the peak fishing season. Commercialproduction is mostly directed towards export. India exportsfourteen major fishery product groups to over 40 countries. Shrimpproduct lines account for 65-70% of the export earnings.

India occupie

Detail Project Report Fisheries NFPD India

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