Fisheries & Aquaculture Industry in India– Business Opportunities & Advantages

In the fiscal year 2022-23, India marked a historic milestone with fish exports totalling 1.73 million metric tonnes valued at USD 8.09 billion, showcasing its substantial contribution to global protein demand. As the world's third-largest fish producer, constituting 8% of global production, India's fisheries sector plays a pivotal role in its economy. The "Pradhan Mantri Matsya Sampada Yojana" is catalysing sustainable expansion with substantial investments, while top export destinations include the United States, China, the European Union, Southeast Asia, and Japan. Impressively, the sector has witnessed an average annual growth rate of 8% from FY 2013-14 to FY 2021-22, reaching 16.25 million metric tonnes in FY 2021-22. Inland fisheries account for 75% of production, with marine fisheries contributing the remaining 25%, supporting over 28 million livelihoods. The per capita fish consumption stands at 6.31 kilograms, and the allowance for 100% Foreign Direct Investment further fosters industry growth.

Market Insight

In the fiscal year 2022-23, the frozen shrimp segment emerged as a dominant player in India's seafood exports, contributing significantly with USD 5.48 billion in revenue. India's fisheries and aquaculture industry hold a pivotal position in satisfying global demand for premium protein, achieving a record fish production of 16.25 million metric tonnes in FY 2021-22, driven by both inland and marine fisheries. The ornamental fisheries sector also thrives, boasting exports worth USD 4.54 million in FY 2021-22. Substantial infrastructure investments are bolstering the industry's expansion, encompassing landing centres, cold storage facilities, processing plants, and fishing harbours.

What to Expect?

The Indian government's significant investment, amounting to INR 10,523 crore, underscores its unwavering dedication to the Blue Revolution and the progression of the fisheries and aquaculture sector. Remarkable enhancements in industry growth and sustainability have been achieved through increased productivity in freshwater and coastal aquaculture, the expansion of fish farming activities, investments in hatchery operations, and the introduction of cage culture practices.

Growth Drivers

India's abundant aquatic biodiversity, vast water resources, and government initiatives such as the Fisheries and Aquaculture Infrastructure Development Fund, Pradhan Mantri Matsya Sampada Yojana, Production-Linked Incentive Scheme, and the 100% Foreign Direct Investment allowance collectively propel the growth of the fisheries sector. Furthermore, the increasing demand for affordable, protein-rich animal-based diets enhances its potential to meet the global protein requirements.

Starting a Fish Farm in India

• Step 1: Capital Planning - Prior to initiating a fish farming venture in India, conduct comprehensive market research to pinpoint your target audience, assess competitors, and calculate expenses related to infrastructure, fish species selection, and daily operational costs.
• Step 2: Explore Financing and Government Initiatives - Investigate diverse financial options and government schemes, including subsidies and bank loans, to secure support for your fish farming enterprise.
• Step 3: Conduct Market Research - Engage in thorough market research at the macroeconomic, industry, and business levels to comprehend economic variables, industry dynamics, factors influencing profitability, and the competitive landscape.
• Step 4: Invest in Fish Farming Training - Gain essential expertise in fish farming through government-sponsored training programs that encompass various aspects of fish culture.
• Step 5: Determine Location, Technology, and Scale - Decide between marine or freshwater aquaculture based on the resources available in your chosen area. Explore cutting-edge technologies and consider available subsidies or incentives.
• Step 6: Foster Relationships with Suppliers, Logistics Partners, and Buyers - Establish robust partnerships with suppliers, logistics providers, and buyers to ensure efficient distribution and uphold product quality. Collaborate with cold storage providers and optimize your supply chain for the successful operation of your fish farming business.

Requirements for a License

Acquiring a fish farming license in India involves adhering to a structured procedure and meeting specific criteria. These requisites encompass:

• Site Selection: Identifying a suitable land or water body for the fish farm.
• Project Proposal: Formulating a comprehensive project proposal, including cost estimations and necessary loan documentation if applicable.
• Training: Acquiring essential skills through participation in training programs and workshops.
• Pond Construction: Constructing fish ponds with appropriate designs tailored to the chosen fish species.
• Stocking Management: Implementing practices such as liming, plankton management, and seed stocking to ensure healthy fish growth.
• Water and Soil Analysis: Evaluating site suitability by conducting water and soil analyses.
• Trial Netting and Harvesting: Monitoring fish development through trial netting and selective harvesting.
• Fish Feed and Care Plan: Creating a feeding and care regimen to optimize fish growth.
• Farm Management Strategies: Implementing techniques to enhance overall farm efficiency and sustainability.
• Cost Assessment: Calculating all expenditures, encompassing infrastructure, equipment, feed, labour, and maintenance, for comprehensive financial planning.

Obtaining the License

• In India, the process of obtaining a fishery license involves several procedural steps and is governed by the respective state governments and fisheries departments:
• Reach out to the local Fisheries Department.
• Acquire the fishery license application form from the Fisheries Department office or their official website.
• Prepare the requisite documents for the application, which may comprise proof of identity and residence (such as Aadhar card or voter ID), documents demonstrating land ownership or a lease agreement for the chosen fishery site, and a comprehensive project proposal detailing the type of fish farming, pond construction plans, and stocking particulars.
• Submit the completed application form, along with the necessary documents, to the Fisheries Department office.
• Be prepared for a potential site inspection by the Fisheries Department to assess the proposed fishery location.
• If your application meets the required criteria, you will be issued a fishery license by the Fisheries Department.
• Ensure strict adherence to all terms and conditions specified in the issued license for the smooth operation of your fishery activities.

Role of Technology in the Industry

In India's aquaculture sector, the adoption of data analytics, IoT devices, and sensors has brought about a revolutionary transformation in farm management. These technologies provide real-time insights into critical factors like water quality and feed management. This data-driven approach not only enhances the health of aquatic populations and aids in disease prevention but also results in significant cost savings. The integration of AI and machine learning further empowers farmers with informed decision-making capabilities, reducing losses caused by disease outbreaks. Innovative approaches like Recirculating Aquaculture Systems (RAS) have gained popularity due to their water efficiency, leading to a reduction in water consumption of up to 90%. Moreover, genetics and breeding programs have yielded fish varieties that are both disease-resistant and high-yielding, contributing to enhanced production efficiency and profitability. These advancements collectively signify a transformative wave in Indian aquaculture practices.

Technology Required

The fisheries and aquaculture sector in India relies on a range of technologies to boost production, efficiency, and sustainability:

• Sensors and monitoring systems assess water quality parameters like temperature, pH, dissolved oxygen, and turbidity.
• Automated feeding systems optimize feed distribution, reducing waste and enhancing fish growth rates.
• Diagnostic tools and equipment facilitate early disease detection, along with water treatment systems and vaccines for fish health maintenance.
• Aeration systems, including diffusers and aerators, are essential for maintaining oxygen levels.
• Recirculating Aquaculture Systems enable efficient water reuse, reducing consumption and environmental impact.
• Modern hatcheries incorporate technologies for controlled breeding, egg incubation, and larval rearing.
• Fish processing technologies, such as filleting, freezing, and packaging, ensure product quality and safety.
• Promotion of aquaponics, a sustainable farming technique combining fish farming with hydroponics.
• Genetic technologies are crucial for developing disease-resistant and high-yield fish varieties.

Deciding the Technology

Choosing the right technology for a fishery project in India necessitates a thorough assessment of various factors. These include the type of fishery, operational scale, species choice, site attributes, environmental conditions, water management, feeding and hatchery methods, monitoring systems, biosecurity measures, sustainability practices, budget considerations, training requirements, adaptability, adherence to regulations, and risk evaluation. A meticulous examination of these components ensures that the selected technology aligns with project objectives, complies with local regulations, and effectively tackles environmental and operational complexities.

Funding the Project

Obtaining funding for fisheries and aquaculture projects in India entails exploring various channels, which encompass government schemes like Pradhan Mantri Matsya Sampada Yojana and state-level initiatives, securing agricultural loans from nationalized and cooperative banks, seeking assistance from fisheries development boards, engaging private investors and venture capital, pursuing grants, leveraging microfinance institutions, utilizing crowdfunding platforms, tapping into research and development grants, and establishing collaborative partnerships with institutions and NGOs. Thoroughly examining these diverse funding options and customizing your approach to suit project-specific requirements can facilitate the financing and progression of your venture.

Available Support

• In India, a comprehensive network of government institutions, including ICAR, the Ministry of Agriculture, Ministry of Commerce, Ministry of Food Processing Industries, and CSIR, actively supports fisheries research and development (R&D). State Agricultural Universities also play a significant role in this domain. Academic institutions, private industries, and voluntary agencies contribute to the collective R&D efforts.
• The fisheries sector in India receives credit support from institutions such as NABARD, IFCI, IDBI, SCICI, SFCs, and NCDC. This support encompasses various fisheries activities and infrastructure development. While credit disbursements have witnessed growth in the past, recent declines can be attributed to factors like regulatory changes, environmental challenges, and disease issues, particularly in shrimp farming.
• The Pradhan Mantri Matsya Sampada Yojana (PMMSY) is a comprehensive scheme in India aimed at promoting sustainable growth in the fisheries sector. Its primary objectives include increasing fish production, modernizing infrastructure, establishing value chains, and enhancing fisheries management practices.

Regulatory Framework

Starting a fisheries and aquaculture business in India requires various licenses and registrations to ensure compliance with regulatory guidelines. Here are some of the key licenses and registrations you may need:

• Fisheries Department Registration
• Aquaculture Authority Approval
• Land Use Permission
• Water Rights and Use Permissions
• Pollution Control Board Clearance
• Import-Export License
• Food Safety and Quality Certifications
• Transportation Permits
• Trade License
• GST Registration

Conclusion

India possesses the potential to bring about a transformation in its fisheries and aquaculture sector by embracing innovative approaches like aquaponics, prioritizing investments in cold chain infrastructure, and embarking on value addition initiatives. The introduction of the new National Policy on Marine Fisheries is geared towards enhancing deep-sea fishing, all while sustainability and heightened productivity remain central concerns. Through strategic investments and well-considered policies, India has the capability to substantially augment its fish production, emerging as a focal point for sustainable fish farming. This, in turn, would bolster economic growth and food security.


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