Confederation of Indian Industry. Opportunities in. Fisheries. Sector in India. Ministry of Food Processing Industries. Government of India

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1 Confederation of Indian Industry Opportunities in Fisheries Sector in India Ministry of Food Processing Industries Government of India

2 Advantage India One of the fastest growing economies in the world Largest producer of several agri commodities Second largest consumer market Significant investments in world-class ports, logistics & supply chain infrastructure Proactive Government policies Investor friendly incentives Highly skilled manpower pool Why India for Fisheries Processing? India, with a production of around 10.8 million MT is the second largest fish producer in the world. Processing levels of marine food in India are currently at 23%. India is endowed with abundant geographical resources suited for both marine and inland fisheries, such as long coastline (7,517 km), abundant rivers and canals, reservoirs, ponds and tanks, and brackish water. The export market is currently valued at USD 5.8 Bn/ 1 Mn MT. Most exports currently are in the frozen form and there is immense potential for exporting value added products.

3 Traditional independent fish retailers still dominate the distribution channel of fish and seafood in India. However, retail sales volume via modern grocery retail channels like supermarkets and hypermarkets, have grown rapidly from a smaller base in recent years, particularly in major cities. Processing of fish into canned and frozen forms is carried out mostly for exports. Besides, there is an increased demand for processed and ready to eat marine products in the domestic and overseas market.

4 Major States The top five states for fisheries production in India are Andhra Pradesh, West Bengal, Gujarat, Karnataka and Kerala with a combined share of around 50% of the total fish production. o Inland Fish Production: The top five states are Andhra Pradesh, West Bengal, Uttar Pradesh, Bihar and Odisha contributing close to 68% to freshwater aquaculture. o Marine Fish Production: The top five states are Gujarat, Andhra Pradesh, Tamil Nadu, Maharashtra and Kerala contributing close to 72% to the total production. Top 5 States in Fish Production Jammu and Kashmir Himachal Pradesh Production in Mn MT 2.3 Punjab Chandigarh Uttarakhand Haryana Delhi Arunachal Pradesh Uttar Pradesh 1.6 Rajasthan Sikkim Bihar Assam Meghalaya Nagaland Manipur Tripura Jharkhand Madhya Pradesh West Bengal Gujarat 0.7 Mizoram Chhattisgarh Odisha Diu Dadra and Nagar Haveli Daman Maharashtra Telangana Andhra Pradesh West Bengal Gujarat Karnataka Kerala Goa Lakshadweep Islands Source: Department of Animal Husbandry, Dairying and Fisheries Andhra Pradesh Karnataka Kerala Andaman & Nicobar Islands Puducherry Tamil Nadu

5 Exports India exported marine products worth USD 5.8 Bn in South East Asia (30%), USA (28%), EU (19%) and Japan (7%) are the major export destinations for Indian marine products. Frozen shrimp contributes 38% in quantity and 65% in value terms to exports. Frozen Fish was the second largest export item, accounting for a share of 26% in quantity and 12% in value. Marine products are exported through 30 different sea/air/land ports across the country. Pipavav is the major port with respect to export volume and Vizag is the major port with respect to export value.

6 Indicative Opportunities in the Fisheries Sector Technology & Equipment Suppliers Upgrdation and capacity expansion for cold chain. Innovations in packaging for increased shelf life and product differentiation. Infrastructure development for fishing harbours/landing centers/wholesale markets as per international standards. Fisheries Processing Players Value addition and product development, especially RTE/RTC products for the domestic as well as export market. Potential to process value added products with Indian taste like fish/shrimp pickle, fish/shrimp curry, skewers, marinated fish with Indian spices etc. Policy Support and Key Fiscal Incentives 100% FDI in trading, including through e-commerce, for food products produced and manufactured in India. 100% FDI permitted through automatic route in food processing sector. Food processing units can avail preferential rates under Priority Sector Lending. Special fund of INR 2,000 crore (USD 300 million) with NABARD for designated food parks and processing units.

7 Food Safety Standards harmonized with international standards. GST implementation to harmonize the tax regime-seamless operations across states. 100% Income Tax Deductions on: o o Capital expenditure for cold chain / warehouse Profit for new food processing, preservation and packaging units Basic Custom Duty reduced on Refrigerated Containers from 10% to 5% Concessional Customs Duty on imported equipment Schemes of Ministry of Food Processing Industries Scheme for Mega Food Park (MFP): Government of India has approved setting up of 42 MFPs in the country, out of which 41 have been sanctioned by MoFPI. Of the 41 MFPs, 9 have already commenced operations. The parks have more than 1,200 developed plots (of approximately 1 acre each) with basic infrastructure enabled, that entrepreneurs can lease for the setting up of food processing and ancillary units. Scheme for Integrated Cold Chain and Value Addition Infrastructure Scheme for Food Safety and Quality Assurance Infrastructure Scheme for Infrastructure for Agroprocessing Clusters Scheme for Creation of Backward and Forward Linkages Scheme for Creation/Expansion of Food Processing and Preservation Capacities Scheme for Human Resources and Institutions

8 Contact Ministry of Food Processing Industries, Govt. of India Tel: / / / Web: YES BANK Ltd. Tel: Web: Confederation of Indian Industry Confederation of Indian Industry (CII) Tel: Web: Source: Ministry of Food Processing Industries (MoFPI), National Horticulture Board, Agricultural and Processed Food Products Export Development Authority (APEDA), Central Institute of Post-Harvest Engineering and Technology (CIPHET), Annual Survey of Industries and other relevant websites

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