Performance and Perspective Analysis of Indian Shrimp Exports

Abstract

Tariffs on shrimps and a few other items imported from the USA are set to go up as the government of India has decided to impose retaliatory duties worth over $200 million on 29 products. This work focuses on shrimp which is the flagship item of seafood exports from India which accounts for 10% of the total exports and nearly 20% of the agricultural exports. Changing markets and product profile including exports diagnostics are explored. Backed by a strong market acceptance, international markets for Indian shrimp have been relatively steady but product profile needs to develop vertically. India needs to diversify its focus from frozen shrimp into value added products. It needs to develop resilience to foreign exchange rates volatility and retain, diversify and develop niche markets. Overall, strong and steady performance of Indian seafood exports overtime should not lead to complacence. Industry needs to be supported both physically and financially. National Bank for Agriculture and Rural Development (NABARD) finance and priority sector lending needs to broad base their outlook to enable industry to update and adopt latest processing technology to develop and market value added shrimp. The MPEDA and Coastal Aquaculture Authority (CAA) which govern aquaculture production and regulation need to look into restructuring shrimp farming in the country to eliminate negative externalities that limit full-scale exploitation of its potential. The steady contribution of seafood exports to the foreign exchange kitty of India should make it a priority sector for attention, in terms of financial, physical, human and social considerations. The newly announced MatsyaSampada Yojana of the government of India, should envisage strategies for sustainable exploitation of available open common use resources of fisheries and aquaculture in the light of climate change scenario and human resource development for sustaining the sector.