Facing setbacks in the US market, its largest export destination, India’s seafood industry is charting a new course to achieve its ambitious target of $14 billion in exports by 2025. The industry is exploring alternative strategies that involve diversifying export markets, focusing on value-added products, and leveraging free trade agreements (FTAs) to expand its global reach.
The US market has been hit by oversupply and high inflation, leading to a decline in consumer demand. Additionally, Ecuador, the world’s largest aquaculture shrimp producer, has emerged as a strong competitor in the US market, posing a challenge to India’s shrimp exports.
In response to these challenges, the Indian seafood industry is considering a shift in its export strategy. One key approach is to increase India’s presence in other countries, particularly those with which India has signed FTAs or is pursuing FTAs. These FTAs can provide preferential tariffs and reduce trade barriers, making Indian seafood more competitive in these markets.
Another strategy involves focusing on high-value products such as black tiger shrimp, which command premium prices in the global market. By shifting from exporting primarily frozen shrimp to value-added products, India can enhance its export earnings and reduce reliance on the US market.
Additionally, the industry is also exploring ways to tap into the domestic market for shrimp, which is currently underutilized. By promoting shrimp consumption within India, the industry can offset any potential export losses and diversify its customer base.
These alternative export strategies were discussed at the 23rd edition of the India International Seafood Show (IISS) in Kolkata, where stakeholders from the seafood industry convened to brainstorm solutions to the current challenges. The event, organized by the Marine Products Export Development Authority (MPEDA) in collaboration with the Seafood Exporters Association of India, provided a platform for industry experts and policymakers to exchange ideas and formulate a roadmap for the future of Indian seafood exports.
MPEDA Chairman D V Swamy expressed confidence in the industry’s ability to achieve the export target of $14 billion by 2025. He highlighted positive developments such as the lifting of the suspension of 99 Indian seafood units by China and the removal of a temporary ban on Indian seafood shipments by Qatar. These developments are expected to provide a boost to India’s seafood exports.
While the US market remains significant for Indian seafood exports, the industry’s focus on diversifying markets, focusing on value-added products, and leveraging FTAs demonstrates its resilience and adaptability in the face of changing market dynamics. By implementing these alternative strategies, the Indian seafood industry is well-positioned to achieve its ambitious export goals and maintain its global leadership in the seafood sector.