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Case Study

  1. 1. The Shrimp Exports Of India
  2. 2. Aquaculture  “the farming of aquatic organisms, fish, molluscs, crustaceans, aquatic plants, crocodiles, alligators, turtle and amphibians” – is known as AQUACULTURE.  Here the word farming implies any specific form of intervention in the rearing process to enhance production, such as regular stocking, feeding, protecting from predators, etc.  It also implies that the cultivated animals have individual or corporate ownerships.  They are grown in Brackish water with a content of around 0.5% salinity in water bodies such as estuaries, coves, bays lagoons, etc.
  3. 3. Difference Between Capture & Aquaculture.  The difference between capture and aquaculture lies in the ownership.  In case of aquaculture the aquatic organisms are harvested and reared by an identifiable owner throughout the rearing period.  Whereas in case of capture fisheries, the aquatic organisms are exploited by the public as a common property resource.
  4. 4. History Of Aquaculture In India.  Aquaculture in India dates back to 500 B.C.  The first written evidence of this was found in Kautilya’s “Arthashastra”.  When the inhabitants started to use paddy fields and the low lying areas for cultivation, the trapped water of tides and monsoons brought in natural seeds of fin and shell fish which got trapped when the water receded.  After the independence in 1947, the focus of sustainability had aquaculture as a part of it.  The sector grew at a compound rate of about 7% during the seventies and picked up in the eighties.
  5. 5. MAJOR PROBLEMS  Indian shrimp exports are going down each day.  Other competitors like China, Vietnam, Thailand, Indonesia, are growing faster in supply of shrimps, both in quantity and value.  India’s major markets for shrimp consumption i.e., U.S. and Japan are being hampered and captured by other countries.  The production technology of shrimp in India was still based on age old techniques, which resulted in a higher cost of production.  The International Trade Commission (ITC) imposed duties ranging from 3.56 % to 27.49 % on all varieties of shrimp products exported to the U.S.A under the Anti-Dumping Act.
  6. 6. Subsequent Problems  The shrimp exports contributed a major chunk of the Indian foreign exchange and helped India to maintain a favorable balance of payment.  This was being hampered and the export income generated decreased considerably and this also hampered the funding of the Aquaculture.  A major part of the East coast of India, which used to contribute a significant amount in the aquaculture of the country was devastated by the December 2004 tsunami.
  7. 7. Subsequent Problems  Japan which was considered the second hotspot for shrimp exporters after U.S. also underwent a shift in the preference of the type of shrimp.  The old production techniques of Indian shrimp manufacturers are not good enough to match the international standards, thus, they face a tough competition from other shrimp exporters like China, Viet Nam, Thailand etc  The count of shrimp exporters reduced from over 3o to less than 15 .
  8. 8. Difference between fish production and potential Marine Inland Total a) Fish Production 2.78 3.52 6.3 2004-05 b) Production 3.9 4.5 8.4 potential (Est.)
  9. 9. Statistics 10 8 6 a) Fish Production 2004-05 4 b) Production potential 2 (Est.) 0 Marine Inland Total
  10. 10. Institutes Established For Aquaculture  After Indian independence the focus of sustainability had aquaculture as apart of it.  Institutes like Central Inland Fisheries Research Institute(CIFRI) Central Marine Fisheries Research Institute (CMFRI) were established to make studies on inland and marine resources.  Upon emphasis from the Indian Council of Agricultural Research (ICAR), CIFRI established the Fresh water Aquaculture Research and Training Centre (FARTC) in 1977 at Bhubaneswar.  The Trainers Training Centre (TTC) and Krishi Vigyan Kendra (KVK) were also established at the same time.
  11. 11. Institutes Established For Aquaculture  The ICAR granted a full fledged institution status to FARTC in 1986 and it was renamed as Central Institute of Freshwater Aquaculture (CIFA) to meet up to the emerging opportunities of the aquaculture sector.  Later on the ICAR established the Central Institute for Brackish water Aquaculture (CIBA) to contribute to shrimp farming.
  12. 12. Government Initiatives  Apart from various institutes opened by the government, it also formulate d a plan exclusively for the development of Aquaculture.  In 1975, the Food and Agriculture Organization of the United Nations (FAO) organized a three week long conference in Bangkok where Asian countries discussed on issues related to aquaculture development and formulated a ten year Aquaculture Development Plan (1975-1985).  The Plan was a ten year plan and had short term, medium term and long term objectives.  Short Term Objectives:  Training shrimp farmers.  Reaching attainable production.  Focusing on the cultivable fish seed and rearing them.
  13. 13. Government Initiatives  Medium Term Objectives:  Adopting of the state of the art technology for fish farming  Major emphasis to be laid on shrimp or brackish water fish culture.  Establishing fish seed farms in each district  Development of culture of frogs, molluscs, sea weeds etc.
  14. 14. Government Initiatives  Long Term Objectives:  To adapt a mechanism through which aquaculture can be carried on in small water bodies.  Adopting an integrated approach towards development of technology, manpower training and input provision.  Ensuring smooth flow of finance for aquaculture.
  15. 15. Government Initiatives  The fisheries sector was viewed by the Government as an important source of earning livelihood, foreign exchange and food supply.  The Marine Products Export Development Authority (MPEDA) was constituted in 1972 by the Ministry of Commerce of the Government of India under the Marine Products Export Development Authority Act 1972 .
  16. 16. Current Scenario Of Indian Shrimp Production  India has a coastline of about 8118 km and a combined river and canal length of about 195210 km.  But when we look at the fish production, it is far below the potential.  India was once the first largest exporter of shrimps and now has become the second largest exporter of shrimps and prawns after its position was taken over by China.
  17. 17. Current Scenario Of Indian Shrimp Production  The large coastline of India helps immensely in brackish water aquaculture.  Even though there is considerable amount of shrimp production in India,  If we look at the contribution of the different states we will find that all the states are not having the same productivity level even in similar natural conditions.  For example, the suitable area for shrimp production in West Bengal is much more than that of Kerala whereas the production yield in Kerala is much more than that of West Bengal.
  18. 18. Suggestions  India was basically concentrating on shrimp farming and ignored other aquatic organisms. Thus, we recommend that the Indian exporters also concentrate on the export of other aquatic organisms.  India’s main market constituted only of U.S. and Japan. India can also tap new markets. This would increase the exports considerably.  Indian government should try and provide more funding to the shrimp farmers
  19. 19. Suggestions  The government should also try and create awareness among the farmers about the latest technologies.  The government should provide the exporters with more encouragement by creating friendly policies and providing subsidies.  The exporters should convince the government to take suitable steps required against the anti-dumping act introduced by International Trade Commission (ITC).