A STUDY ON MARINE PRODUCTS EXPORT OF SOUTH INDIA.

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INTRODUCTION Marine products are one of the most important processed food exports from India and represent an important potential growth area for the Indian economy. Exports of Marine products from India has increased from about US$ 46 million in 1970-71 to more than US$ 1.85 billion in 2006-07 (Figure 1). It is estimated that by 2010, exports of marine products from India will touch US$ 4 billion . USA, Japan, Australia and the European Union are traditional major export markets of India. China and Middle-Eastern countries are perceived as potential big markets for Indias marine exports.

Coastal Indian states like Andhra Pradesh, Orissa, Kerala, Tamil Nadu, Karnataka, and West Bengal are major centers of marine product exports from India. The processing plants for freezing and canning of marine exports are mostly situated in these states. Frozen shrimp is the most important export item in this sector and it accounts for more than 60 percent of Indias total exports of marine products . Shrimp cultivation and exports have generated significant employment in India. According to Bhattacharyya , shrimp cultivation and processing have created direct employment of about 300, 000 people and indirect employment to over 700, 000 in the country. A significant percentage of workers in the marine processing sector are women. Women workers are preferred for processing works like peeling and cleaning of shrimps.

Though India has done well in this sector, there are a number of external issues which have affected this sector. One of the major problems faced by the marine exporters from India came in the form of a ban by EU on these products in 1997. In 1997, the EU imposed ban on the import of Indian fish and fishery products based on the findings of deficiencies in hygiene and phytosanitary conditions in many of the processing units in India. This forced the government to lay down stringent norms for exporters of such products. The government also initiated a major drive to improve the standards of the processing plants in India. This led to a major shake-up in the sector as many of the processing plants could not afford the required investment and closed down. It also led to significant consolidation of the industry. Interestingly, the emphasis on higher standards has also affected the nature of work and the pattern of employment in this sector. This has particularly affected the women workers who are engaged in the processing of shrimp and other marine products. This article puts forward a case study from West Bengal to highlight this. II. In the southern part of West Bengal, which shares the Indian coastline with the Bay of Bengal, shrimp aquaculture has been growing in importance among farmers. The economy of this region is primarily dependent on agriculture and its allied activities. In most areas of the region, agriculture is primarily dependent on the monsoons and multi-cropping is not a viable option because irrigation by river water or groundwater is not possible due to its salinity. Because of these problems, alternative economic activities like shrimp aquaculture have gained more importance during the past one and half decades. During this period the number of shrimp aquaculture farms increased manifold, primarily converting agricultural land as well as utilizing unproductive low-lying land of the coastal region. Shrimp aquaculture has become an emerging economic activity of the region mainly because the prospect, in terms of income from the activity, is much higher than the same from agriculture. Shrimp aquaculture is pre-dominantly an export-oriented economic activity, although it caters to the domestic demand as well, and the liberal export-orientation of the economy in the new regime in the nineties has resulted in its growth and thereby making it a viable economic option for the rural population. Not only land held by small and marginal farmers, which became economically unviable for sustenance in this set-up, were leased to prospective entrepreneurs for shrimp aquaculture, even the large farmers leased their land for it. The rent received per bigha (0.1338 hectare or 0.3306 acre) of leased land can be up to Rs.11,000 per year. However, on an average, a farmer receives around Rs.7,000 per year and the rent differential depends on the suitability of the land for shrimp cultivation. In comparison to this, farming, along with all its uncertainties, on a similar stretch of land could at most yield an income of Rs.3,000 in a

year in this region. Thus for the farmers, engaging land in this activity not only generates a much higher income stream, but it also minimizes the uncertainty associated with agriculture. MPEDA invites EOI from qualified person/ persons/ firms/ companies interested to conduct this demand assessment and viability analysis study for setting up of seafood parks with Common Facility Centre in SEZ at Nellore and Tuticorin: 1. MPEDA is having a vision to setup Seafood Park in SEZs to promote processing and export of value added seafood products and to attract foreign direct investment to the processing sector and facilitate the process of consolidation of the industry to achieve economies of scale. MPEDA propose to setup Seafood Park with Common Facility Centre in IFFCO Kisan SEZ, Nellore and Pearlcity Food Port SEZ, Tuticorin For this process, MPEDA require the support of an expert consultant / organization to carry out project development activities which includes detailed demand assessment, viability analysis and project planning work for setting up of Seafood Parks in SEZ at Nellore and Tuticorin. The terms of references (TOR) of the study include: a) Development of the master and infrastructure plan for Common Facility Centre (CFC) and Seafood Park in SEZ as per EU standards. b) Preparing technical / financial feasibility, demand assessment for units and budgeting report for implementation of project for setting up of Seafood Park in SEZ. c) Developing the strategy for attracting iinvestments and managing capital expenses and revenues for common facility centre for Seafood Park in SEZ. d) Developing a business and marketing strategy for Seafood Park in SEZ. e) Developing the developer, co-developer and tenant mix in processing and nonprocessing areas and the phasing out plan for implementation of project. f) Review of the SEZ trends, SEZ rules and regulations related to developers, co-developers. g) SEZ rules, regulations and documentation works related to operation of units especially procurement of raw materials, spare parts, diesel, packaging materials and other accessories from DTA, engaging contractors, pest management, servicing machinery in DTA, sales into DTA, disposal of wastes, disposal of scraps and old machineries into DTA etc.

h) Mode of operation for MPEDA for setting up of Seafood Park in SEZs and its merits / demerits (for ex: Buying/ leasing of land, equity participation etc). i) Interaction with SEZ developers, Regional Officers, Potential investors to get their views, suggestions in establishment and operation of Seafood Park in SEZs. j) The best and attractive association between developer/ MPEDA and individual processors for establishment of Seafood Park in SEZs and budgetary requirement for the same. k) Anticipatory budgetary requirement for the next five years for its operation after establishment including contribution to be collected from beneficiaries. l) Analysis and critical evaluation of the clauses in lease documents, MOU etc. to be signed with SEZ developers and to suggest the best options/ clauses to protect the interest of MPEDA in establishment and operation of Seafood Park in SEZs. m) Suggestions for the smooth operation of the parks safeguarding MPEDAs interest. n) Identification of infrastructure requirements for Seafood Park, common facility centre, Individual processing units. o) Suggesting entry and exit options for participant units and also for MPEDA. p) Modalities of creating SPV to operate Seafood Park. q) Human resource requirement for operating in CFC, other individual units and Administrative staff from MPEDA. r) Pricing policy for land and CFC facilities and other common infrastructure. s) Responsibilities of MPEDA, Individual units and SEZ developer. t) Role of MPEDA after the implementation of Project. u) Analysis of worst case Scenario of no takers for the facilities created/ major supply chain disruptions. v) SWOT analysis of the initiative to start Seafood Park in SEZ. w) Impact of new DTC on the participation in Seafood Park.

INDUSTRYPROFILE AND TRENDS The Marine Products Export Development Authority (MPEDA) is making efforts to find new markets for Indian marine products. For the purpose, it is participating in the major international seafood trade fairs. Indian marine products are showcased in these trade fairs for their variety and quality with a view to introduce our products to the new traders who visit these fairs and to establish new trade contacts in new markets. MPEDA also regularly mounts trade delegations and official delegations to new regions with the objective of tapping potential for export of our marine products to the countries in those regions. MPEDA publishes list of exporters on its website and passes on the valuable trade enquiries received by it to the exporters in Indiathrough trade associations. India exported marine products to 99 countries in 2009-10 as against 91 countries in the year 2006-07. Finding new markets for Indian Products through broadening and deepening our presence in world markets is a continuous and ongoing process and hence no specific target for finding new markets has been fixed for 2010-11. MPEDA is focusing only on its core area of export promotion of marine products. It is continuously taking several measures to boost exports by implementing a number of schemes which include sea-freight assistance scheme for import of raw material for value addition and re-export, developmental assistance for export of ornamental fish and assistance for technology up gradation for processing of marine products. Further, MPEDA is regularly disseminating the trade enquiries received to the trade members and facilitating interaction of sellers/buyers through its Trade Promotion Offices in Japan and New York to develop new tie-ups between exporters and buyers. CURRENT REND Marine Product Exports Grows 18.72% During April December 2011-12 Export of Marine Products during April December of 2011 of the current fiscal has indicated a positive growth in terms of both quantity and value. The exports registered a growth of 1.48% in quantity, 21.68% in rupee value and 18.72% in US $ realization compared to the same period last year. The unit value realization also improved by 16.98%. The details are given in the following table. Overall Exports during 2011-12 compared to 2010-11 Export details Quantity Tonnes Value Rs.crore 2011-12(Apr-DEC) 621577 12190.93 2010-11(Apr-DEC) 612505 10018.47 Growth % 1.48 21.68

$ Million Unit value $/kg.

2628.19 4.23

2213.82 3.61

18.72 16.98

Export of Fr. Shrimp and Fish have registered a positive growth both in quantity and value. Similarly exports to South East Asia, Japan and USA have registered a positive growth both in quantity as well as in value terms. Frozen Shrimp continued to be the major export item accounting for 51.35% of the total US $ earnings. Shrimp exports during the period increased by 17.67%, 34.77% and 32.98% in quantity, rupee value and US$ value respectively. There is a considerable increase in unit value realization (13.01%) also. Export of Vannamei Shrimp during the period increased tremendously by 272%, 326% and 318% in quantity, rupee value and US$ value respectively, when compared to the same period last year. Export of Fr. Shrimp to USA has registered a growth of 38.34% in quantity, 41.97% in rupee value and 41.07% in US$ terms. Fr. Shrimp export to Japan also showed an increase of 10.15%, 19.40% and 18.00% in volume, rupee value and US$ value respectively. Fish, the second largest export item in value term, accounted for a share of about 39.43% in quantity and 19.14% in US$ earnings.Fr. Fish exports during the period increased by 6.40% in quantity, 21.81% in rupee value and 15.96% in US $ earnings. Unit value realization also improved by 8.99%. Fr. Squid and Cuttlefish exports decreased in quantity but showed an increase in value terms both in rupee as well as in US $ term. Fr. Cuttlefish showed a decline of 12.30% in quantity and showed a growth of 14.97% and 11.35% in rupee value and US$ realization. There is a considerable increase in the unit value realization 26.97%. Fr. Squid exports showed a decline of 12.21% in quantity and showed a growth of 20.10% and 18.28% in rupee value and US$ realization. There is an increase in the unit value realization by 34.73%. Dried items export declined by 39.11% in quantity 55.08% and 56.53% in rupee and US$ value respectively. The exports of Chilled items improved in value but decreased in volume. Live items exports gone down both in value as well as in volume when compared to same period last year. For the first time, South East Asia became the largest market with a share of 25.75% in US $ realization and 39.58% in quantity. Exports to S E Asia have shown a growth of 43.19% in quantity, 103.70% in rupee value and 95.99% in US$ realization. EU slipped to second spot with a share of 22.02%, followed by USA 19.17%, Japan 14.09%, China 7.06%, Middle East 4.39% and other countries 7.51%. Exports to EU registered a growth of 1.33% in US$ realization but declined in quantity by 13.66%. Export to USA registered a growth of 31.33% in quantity and 39.05% in US$ realization. Japan also registered a positive growth of 19.25% in

quantity and 18.12% in US$ realization. Exports to China have shown a drastic decline both in quantity as well as in value terms. The Surge in exports to SE Asia is attributed to shortage of raw material in that region as well as due to the Indo ASEAN trade pacts. The short supply from SE Asia and Indo Japanese CEPA has also had a good impact on the exports to Japan. Export realization in rupee terms increased by about 22% and depreciation of rupee against US dollar and other major commercial resulting in better value realization in rupee terms also. Considering the increase in exports experienced in hall 3 quarterly Indian seafood exports for 201112 are likely to increase by nearly 20% in US$ terms in comparison to 2010-11 to US $ 3.5 billion from US$ 2.8 billion last year. In order to give further momentum to the export of marine products from India, the Marine Products Export Development Authority (MPEDA) along with the Seafood Exporters Association of India (SEAI) is organizing the 18th India International Seafood Show (www.indianseafoodexpo.com) at Chennai Trade Centre, Chennai from 29th February to 2nd March 2012. The Event will be inaugurated by Dr K Rosiah, His Excellency Governor of Tamil Nadu on 28th February 2012 evening. The function will be presided over by Shri Anand Sharma, Honble Union Minister of Commerce & Industry and Textiles. The Show will have more than 200 stalls spread over 4400 sq.m. area and over 1500 delegates and visitors. Technical Sessions are also planned on the sidelines of the Show.

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY The system of collecting data for research projects is known as research methodology. The data may be collected for either theoretical or practical research for example management research may be strategically conceptualized along with operational planning methods and change management. Some important factors in research methodology include validity of research data, Ethics and the reliability of measures most of your work is finished by the time you finish the analysis of your data.

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Framing your Research Methodology Study design Sample size calculation and justification Development of questionnaire Statistical techniques Research is undertaken within most professions. More than a set of skills, it is a way of thinking: examining critically the various aspects of your professional work. It is a habit of questioning what you do, and a systematic examination of the observed information to find answers with a view to instituting appropriate changes for a more effective professional service. When you say that you are undertaking a research study to find answers to a question, you are implying that the process; 1. Is being undertaken within a framework of a set of philosophies ( approaches); 2. uses procedures, methods and techniques that have been tested for their validity and reliability; 3. Is designed to be unbiased and objective . Philosophies mean approaches e.g. qualitative, quantitative and the academic discipline in which you have been trained. Validity means that correct procedures have been applied to find answers to a question. Reliability refers to the quality of a measurement procedure that provides repeatability and accuracy. Unbiased and objective means that you have taken each step in an unbiased manner and drawn each conclusion to the best of your ability and without introducing your own vested interest. (Bias is a deliberate attempt to either conceal or highlight something).

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