AMITY INTERNATIONAL BUSINESS SCHOOL

PROJECT ON “MARINE PRODUCTS EXPORT DEVLOPMENT AUTHORITY”.

SUBMITTED TO: SUBMITTED BY:

Ms . Alka Maurya Robin Sirohi

Kumar Rajanala

Nishant Dogra

CONTENTS:

• Overview

• Production Centers

• Domestic Industry

• Trend in Export (Export from India for last three years)

• Major Export Destinations

• Major Competitors in the global market

• Provisions in India’s Foreign Trade Policy

• Quality Standards

• Problems / Challenges faced by the exporter

• Relevant News articles

OVERVIEW:

The Marine Products Export Development Authority (MPEDA) was constituted in 1972 under the Marine Products Export Development Authority Act 1972 (No.13 of 1972). The role envisaged for the MPEDA under the statute is comprehensive - covering fisheries of all kinds, increasing exports, specifying standards, processing, marketing, extension and training in various aspects of the industry.

Structure, Activities & Network

MPEDA functions under the Ministry of Commerce, Government of India and acts as a coordinating agency with different Central and State Government establishments engaged in fishery production and allied activities.

Standing Committees of MPEDA

Executive Committee Technical Committee Export Promotion Committee

The plan schemes of the Authority are implemented under seven major heads:

Market Promotion Capture Fisheris Culture Fisheries Processing infrastructure & value addition Quality control Research and development Viability gap funding

The marine products exports are benefited by Special Focus initiatives.

 SPECIAL FOCUS INITIATIVES

 The major benefits are as follows:-

1. Market Diversification

To insulate Indian exports from the decline in demand from developed countries, in this Policy focus is on diversification of Indian exports to other markets, specially those located in Latin America, Africa, parts of Asia and Oceania.  To achieve diversification of Indian exports, following initiatives have been taken under this Policy.

a. 26 new countries have been included within the ambit of Focus Market Scheme.

b. The incentives provided under Focus Market Scheme have been increased from 2.5% to 3%.

c. There has been a significant increase in the outlay under ‘Market Linked Focus Product Scheme’ by inclusion of more markets and products.  This ensures support for exports to all countries in Africa and Latin America.

2.Marine Sector

a. Imports for technological up gradation under EPCG in fisheries sector (except fishing trawlers, ships, boats and other similar items) exempted from maintaining average export obligation.

b. Duty free import of specified specialized inputs / chemicals and flavouring oils is allowed to the extent of 1% of FOB value of preceding financial year’s export.

c. To allow import of monofilament long line system for tuna fishing at a concessional rate of duty and Bait Fish for tuna fishing at Nil duty.

d. A self  removal procedure for clearance of seafood waste is applicable subject to prescribed wastage norms.

e. Marine products are considered for VKGUY scheme.

PROMOTIONAL MEASURES 

Market Access Initiative (MAI) 

Under MAI scheme, financial assistance is provided for export promotion activities on focus country, focus product basis.  Financial assistance is available for Export promotion councils (EPCs), Industry and Trade Associations (ITAs), Agencies of state government, Indian commercial

missions (ICMs) abroad and other national level institutions/eligible entities as may be notified. 

Meeting expenses for statutory compliances in buyer country for Trade related Matters 

DOC provides for reimbursement of charges / expenses for fulfilling statutory requirements in the buyer country, including registration charges for product registration for pharmaceuticals, bio-technology and agro-chemicals products on recommendation of EPCs.  Financial assistance is also provided for contesting litigations(s) in the foreign country concerning restrictions/anti dumping duties etc. on particular product(s) of Indian origin, as provided under the market Access Initiative (MAI) Scheme of DOC. 

Towns of Export Excellence (TEE) 

A number of towns have emerged as dynamic industrial clusters contributing handsomely to India’s exports.  It is necessary to grant recognition to these industrial clusters with a view to maximizing their potential and enabling them to move higher in the value chain and tap new markets. 

Selected towns producing goods of Rs.750 Crore or more will be notified as TEE based on potential for growth in exports.  However for TEE in Handloom, handicraft, Agriculture and Fisheries sector, threshold limit would be Rs.150 Crores. 

. 

FOCUS MARKET SCHEME (FMS)

Objective

Objective is to offset high freight cost and other externalities to select international markets with a view to enhance India’s export competitiveness in these countries. 

Entitlement  

Exporters of all products to notified countries shall be entitled for Duty Credit Scrip equivalent to 3% of FOB value of exports (in free foreign exchange) for exports made from 27.08.2009 onwards. 

DUTY EXEMPTION & REMISSION SCHEMES 

Duty exemption and remission Schemes 

Duty exemption schemes enable duty free import of inputs requires for export production. Duty Exemption Schemes consist of (a) Advance Authorization scheme and (b) Duty Free Import Authorization (DFIA) scheme.  A Duty Remission scheme enables post export replenishment / remission of duty on inputs used in export product.  Duty remission Schemes consist of (a) Duty Entitlement Passbook (DEPB) Scheme and (b) Duty Drawback (DBK) Scheme. 

ADVANCE AUTHORISATION SCHEME 

Advance Authorisation 

An advance Authorization issued to allow duty free import of inputs, which are physically incorporated in export product (making normal allowance for wastage).  In addition, fuel, oil, energy, catalysts which are consumed / utilized to obtain export product, may also be allowed. 

DUTY FREE IMPORT AUTHORISATION (DFIA) SCHEME 

Scheme 

DFIA  is issued to allow duty free import of inputs , fuel, oil, energy sources, catalyst which are required for production of export product. 

DUTY ENTITLEMENT PASSBOOK (DEPB) SCHEME 

Duty Entitlement Passbook (DEPB) Scheme 

Objective of DEPB is to neutralize incidence of customs duty on import content of export product.  Component of customs duty on fuel (appearing as consumable in the SION) shall also b e factored in the DEPB rate.  Component of Special Additional Duty shall also be allowed under DEPB (as brand rate) in case of non-availment of CENVAT credit.  Neutralization shall be provided by way of grant of duty credit against export product. 

EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME 

Zero duty EPCG Scheme 

Zero duty EPCG scheme allows import of capital goods for pre production, production and post production of zero custom duty, subject to an export obligation. 

EXPORT ORIENTED UNITS (EOUs), ELECTRONICS HARDWARE TECHNOLOGY PARKS (EHTPs),  SOFTWARE TECHNOLOGY PARKS (STPs) AND BIO-TECHNOLOGY PARKS (BTPs) 

Production Centres:

Source: www.caa.gov.in

Costal Aquaculture Authority.

Domestic Market for Marine Products:

Source: www.mofpi.com

Ministry of Food Processing Industries.

India is the third largest fish producing country in the world and ranks second in inland fish production. The 8,000 km coastline from both inland and marine resources, 3 mn hectares of reservoirs, 1.4 mn hectares of brackish water, 50,600 sq km of continental shelf area and 2.2 mnsq km of exclusive economic zone supplement India’s vast potential for fishes. Processed fish products for export include conventional block frozen products, individual quick frozen products (IQF), minced fish products like fish sausage, cakes, cutlets, pastes, surimi, texturized products and dry fish etc. Exports of marine products have been erratic and on a declining trend which can be owed to the adverse market conditions prevailing in the EU and US markets. The anti-dumping procedure initiated by the US Government has affected India’s shrimp exports to the US.

State of the industry

 

There are about 1,273 registered exporters in the country and the Indian seafood fish processing industry is quite well developed. The post-harvest infrastructure includes around 215 ice plants, 481 shrimp peeling plants, 371 freezing plants, 471 cold storage units, 7 canning plants, 16 fishmeal plants, 11 surimi plants, and one agar-agar production unit. Around 95% of the seafood processing units in the country is concentrated in the 20 major clusters in 12 maritime states where fish catches is highest. All export oriented processing units are HACCP certified.The total installed freezing capacity of 7,283 tn/day, is fully utilized only during the peak fishing season. Commercial production is mostly directed towards export. India exports fourteen major fishery product groups to over 40 countries. Shrimp product lines accounts for 65-70% of the export earnings

Maritime States of India.

The European Union, in the year 2004-05, collectively became the largest importer of Indian marine products. As compared to 2004-05, EU's share increased by 10% in quantity, 12.8% in value terms in 2005-06& continues to grow. The share of USA also increased by 11.8% in quantity and 3.6% in value terms in 2005-06 and still growing. The exports to the US, EU, China, and Middle East showed an increase whereas the export to Japan recorded a declining trend in the past few years. Major marine products exported from India includes frozen shrimps, Individually Quick Frozen (IQF) shrimps, canned shrimps/prawns, dried shrimps/prawns, lobsters, cuttle fish, squid tubes, fresh fishes, canned fish, dried fish, crab, clam, mussel, aquarium fishes, dried shark fins, dried cuttle fish bones, dried fish maws, etc. Frozen shrimp is the largest item exported in terms of value with a share of 59.02% of the total exports and frozen fish is the major item exported in terms of quantity with a share of 35.60% in total exports of marine products (MPEDA, 2005-06).

Maritime States of India

Kerala Maharashtra

Tamiladu Gujarat

Pondichery West Bengal

Karnataka Orissa

Andhra Pradesh Goa

Andaman & Nicobar Islands

Lakshadweep

 Future Prospects

Marine products have created a sensation in the world market because of their high health attributes. With the high unit value, seafood has been acclaimed as one of the fastest moving commodity in the world market. The world market for seafood has doubled within the last decade reaching US $49.32 billion mark India's share is 2.4%, dependence on shrimp as a product and is changing due to the increased attention given on other fishery resource like squid, cuttlefish, fin fish, etc. and penetrating into markets of Western Europe and South East Asia.

Trend in Export :

MARINE PRODUCTS EXPORTS CROSSED 3.5 BILLION MARK IN 2011-12 The Marine Products Export Development Authority is a statutory body set up by the Government of India under the MPEDA Act 1972, under the Ministry of Commerce & Industry, Govt. of India. MPEDA is the nodal agency for promotion of export of marine products from India. The MPEDA has presence in all the maritime states and is implementing its developmental schemes for export promotion/aquaculture production through the field offices.

Source:www.mpeda.com

During the financial year 2011-12, for the first time in the history of Marine product exports, the export earnings have crossed USD 3.5 billion. This is also first time export has crossed all previous records in quantity, rupee value and US $ terms. Exports aggregated to 862021 tonnes valued at Rs. 16597.23 crores and USD 3508.45 million. Compared to the previous year, seafood exports recorded a growth of 6.02% in quantity, 28.65% in rupee and 22.81% growth in US$ earnings respectively.

MARINE PRODUCTS EXPORT GROWTH IN US$ TERMS:

The figures must be viewed in the light of the scenario of continuing recession in the international markets, debt crisis in EU economies, continuing antidumping duty in US, sluggish growth in US economy and the political instability in the Arab world. The increased production of Vannamei shrimp, increased productivity of Black tiger shrimp and better price realization of major items like Shrimp, Squid and Cuttlefish helped us to gain such a higher export turnover.

Exports during 2011-12 compared to 2010-11 Export details

2011-12 2010-11 Growth %

Quantity Tonnes 862021 813091 6.02 Value Rs.crore 16597.23 12901.47 28.65 Value US $ Million

3508.45 2856.92 22.81

Source:www.mpeda.com

Major items of Export:Frozen Shrimp continued to be the major export value item accounting for 49.63% of the total US $ earnings. Shrimp exports during the period increased by 24.86%, 42.97% and 37.99% in quantity, rupee value and US$ value respectively. Fish, has retained its position as the principal export item in quantity terms and the second largest export item in value terms, accounted for a share of about 40.27% in quantity and 19.48% in US$ earnings.

Fr. Cuttlefish recorded a growth of 21.92% in rupee value and 15.58% in USD terms. Unit value also increased by 25.06%, however, there is a decline in quantity (7.59%). Export of Fr. Squid showed an increase of 21.53% in rupee value and 17.46% in US$ realization. Unit value also increased by 32.95%. However, there is a decrease of 11.65% in terms of quantity.

Live items also showed a growth of 8.76% in terms of rupee value and 3.18 % in terms of US$ realization compared to the previous year. Dried items showed a drastic decline in quantity, value and US$ terms by 32.05%. 41.08% and 44.56% respectively. The details are given in the following table.

Major Export Destinations:Source: www.fao.orgUnited Nations Food and Agriculture Organization (FAO)

Declining Markets:EUUSAJapan

Emerging Markets:VietnamBelgiumCanadaGermanyHong Kong

China

South East Asia became the largest buyer of Indian marine products with a share of 39.90 % in volume and 25.09 % in US $ realization. European Union (EU) got into the second place with a share of 22.96% followed by USA 18.17%, Japan 13.01%, China 7.51%, Middle East 5.33% and Other Countries by 7.95%. Exports to South East Asia registered a growth of 87.51 % in US$ realization and 47.01% in terms of volume. Increase in export of Fr. Shrimp, Fr. Fish and Chilled items contributed to the growth. Exports to US had registered a positive growth of 36.45% in quantity and 45.39% in US$ realization and is mainly attributed by the export of Fr. Shrimp and cephalopods. . Exports of Vannamei shrimp showed a tremendous increase in US market by 212 % in quantity and 209% in US $ realization.

Export to Japan also registered a positive growth of 21.33% in quantity and 22.35% in US $ terms. Exports of chilled items showed a tremendous increase in Japanese market by 120.12% in quantity and 220.34% in US $ realization. Exports to China showed a drastic decline of 46.89% in quantity and 40.17% in US$ terms. The marine products exports have strengthened India’s presence in South East Asia. There is a significant increase in exports to South East Asian Countries compared to the previous year. Export of Fr. Shrimp to South East Asia has registered a growth of about 222.43% in volume and 356.36% in US$ terms. Export of Fr. Shrimp to USA has also showed a growth of about 47.68% in volume and 47.55% in US$ terms. Export of Vannamei shrimp had also picked up. We have exported about 40787 MT of Vannamei shrimp during this period. Export to Middle East countries showed an increase of 25.98% in US$ realization but declined in quantity by 13.25%. The details are given in the following Pie chart.

Major Competitors:Source: www.fao.orgUnited Nations Food and Agriculture Organization (FAO)Top 10 Aquaculture Producers:

Top exporters:

China has been the world’s largest exporter of fish and fishery products. In 2011 its exports reached USD 10.3 billion. In the same year, other major exporters are:

China ($ 21.21 billion),The USA ($ 20.03 billion)Thailand ($ 19.49 billion),Norway ($ 19.25 billion),Viet Nam ($14.90 billion), Chile ($14.40 billion).Source: www.fao.org

PROVISIONS IN INDIA’S FOREIGN TRADE POLICY:

 SPECIAL FOCUS INITIATIVES

 The major benefits are as follows:-

1. Market Diversification

To insulate Indian exports from the decline in demand from developed

countries, in this Policy focus is on diversification of Indian exports to other

markets, especially those located in Latin America, Africa, parts of Asia and

Oceania.  To achieve diversification of Indian exports, following initiatives

have been taken under this Policy.

a. 26 new countries have been included within the ambit of Focus

Market Scheme.

b. The incentives provided under Focus Market Scheme have been

increased from 2.5% to 3%.

c. There has been a significant increase in the outlay under ‘Market

Linked Focus Product Scheme’ by inclusion of more markets and

products.  This ensures support for exports to all countries in

Africa and Latin America.

2. Agriculture and Village Industry

a. Vishesh Krishi and Gandhi Udyog Yojana

b. Capital goods imported under EPCG will be permitted to be

installed anywhere in AEZ..

3. Marine Sector

a. Imports for technological upgradation under EPCG in

fisheries sector (except fishing trawlers, ships, boats and

other similar items) exempted from maintaining average

export obligation.

b. Duty free import of specified specialized inputs / chemicals

and flavouring oils is allowed to the extent of 1% of FOB

value of preceding financial year’s export.

c. To allow import of monofilament longline system for tuna

fishing at a concessional rate of duty and Bait Fish for tuna

fishing at Nil duty.

d. A self  removal procedure for clearance of seafood waste is

applicable subject to prescribed wastage norms.

e. Marine products are considered for VKGUY scheme.

GENERAL PROVISIONS REGARDING IMPORTS AND EXPORTS  

Exports and Imports free unless regulated 

Exports and Imports shall be free, except where regulated by FTP or any other

law in force.  The item wise export and import policy shall be, as specified in

ITC (HS) notified by DGFT, as amended from time to time. 

Interpretation of Policy 

If any question or doubt arises in respect of interpretation of any provision contained in FTP, or classification of any item in ITC (HS) or HBP- v1 or HBP- v2, or Schedule of DEPB rates (including content, scope or issue of an authorization there under) said question or doubt shall be referred to DGFT whose decision thereon shall be final and binding. 

Restricted Goods 

Any goods, export or import of which is restricted under ITC (HS) may be exported or imported only in accordance with an Authorization or in terms of a public notice issued in this regard. 

Free Exports 

All goods may be exported without any restriction except to extent such exports are regulated by ITC (HS) or any other provision of FTP or any other law for time being in force.  

Realization of Export Proceeds

If an exporter fails to realize export proceeds within time specified by RBI, he shall, without prejudice to any liability or penalty under any law in force, be liable to action in accordance with provisions of FT (D&R) Act, Rules and Orders made there under and FTP. 

Export Promotion Councils (EPC)  

Basic objective of export promotion councils (EPCs) is to promote and develop Indian exports.  Each council is responsible for promotion of a particular group of products, projects and services as given in HBP-v1. 

Registration –cum- Membership Certificate (RCMC) 

Any person, applying for;

(i)    an Authorization to import / export, [except items listed as restricted items in     ITC (HS)] or

(ii)   any other benefit or concession under FTP

shall be required to furnish RCMC granted by competent  authority in accordance with procedure specified in HBP-v1 unless specifically exempted under FTP. 

Certificate of registration as Exporter of Spices (CRES) issued by Spices Board shall be treated as Registration –Cum-Membership Certificate (RCMC) for the purposes under this Policy. 

PROMOTIONAL MEASURES  

Market Access Initiative (MAI)  

Under MAI scheme, financial assistance is provided for export promotion activities on focus country, focus product basis.  Financial assistance is available for Export promotion councils (EPCs), Industry and Trade Associations (ITAs), Agencies of state government, Indian commercial missions (ICMs) abroad and other national level institutions/eligible entities as may be notified. 

Meeting expenses for statutory compliances in buyer country for Trade related Matters  

DOC provides for reimbursement of charges / expenses for fulfilling statutory requirements in the buyer country, including registration charges for product registration for pharmaceuticals, bio-technology and agro-chemicals products on recommendation of EPCs.  Financial assistance is also provided for contesting litigations(s) in the foreign country concerning restrictions/anti dumping duties etc. on particular product(s) of Indian origin, as provided under the market Access Initiative (MAI) Scheme of DOC. 

Towns of Export Excellence (TEE)  

A number of towns have emerged as dynamic industrial clusters contributing handsomely to India’s exports.  It is necessary to grant recognition to these industrial clusters with a view to maximizing their potential and enabling them to move higher in the value chain and tap new markets. 

Selected towns producing goods of Rs.750 Crore or more will be notified as TEE based on potential for growth in exports.  However for TEE in Handloom, handicraft, Agriculture and Fisheries sector, threshold limit would be Rs.150 Crores. 

Brand Promotion and Quality  

DOC provides funds for capacity building for up-gradation of quality to national level Institutions and EPCs to organize training programmes for the skill improvement of the exporters for quality up-gradation, reduction in rejection, product improvement etc. as provided under the Market Access Initiative (MAI) Scheme of DOC. 

Test Houses  

Central Government will assist in modernization and up-gradation of test houses

and laboratories to bring them at par with international standards.

FOCUS MARKET SCHEME (FMS)

Objective

Objective is to offset high freight cost and other externalities to select

international markets with a view to enhance India’s export competitiveness in

these countries. 

Entitlement  

Exporters of all products to notified countries (as in Appendix 37C of HBPv1)

shall be entitled for Duty Credit Scrip equivalent to 3% of FOB value of exports

(in free foreign exchange) for exports made from 27.08.2009 onwards. 

DUTY EXEMPTION & REMISSION SCHEMES  

Duty exemption and remission Schemes  

Duty exemption schemes enable duty free import of inputs requires for export

production. Duty Exemption Schemes consist of (a) Advance Authorization

scheme and (b) Duty Free Import Authorization (DFIA) scheme.  A Duty

Remission scheme enables post export replenishment / remission of duty on

inputs used in export product.  Duty remission Schemes consist of (a) Duty

Entitlement Passbook (DEPB) Scheme and (b) Duty Drawback (DBK)

Scheme. 

ADVANCE AUTHORISATION SCHEME  

Advance Authorisation  

An advance Authorization issued to allow duty free import of inputs, which are

physically incorporated in export product (making normal allowance for

wastage).  In addition, fuel, oil, energy, catalysts which are consumed / utilized

to obtain export product, may also be allowed. 

DUTY FREE IMPORT AUTHORISATION (DFIA) SCHEME 

Scheme 

DFIA  is issued to allow duty free import of inputs , fuel, oil, energy sources,

catalyst which are required for production of export product. 

DUTY ENTITLEMENT PASSBOOK (DEPB) SCHEME  

Duty Entitlement Passbook (DEPB) Scheme  

Objective of DEPB is to neutralize incidence of customs duty on import content

of export product.  Component of customs duty on fuel (appearing as

consumable in the SION) shall also b e factored in the DEPB rate.  Component

of Special Additional Duty shall also be allowed under DEPB (as brand rate) in

case of non-availment of CENVAT credit.  Neutralization shall be provided by

way of grant of duty credit against export product. 

EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME  

Zero duty EPCG Scheme  

Zero duty EPCG scheme allows import of capital goods for pre production,

production and post production of zero custom duty, subject to an export

obligation. 

EXPORT ORIENTED UNITS (EOUs), ELECTRONICS HARDWARE TECHNOLOGY PARKS (EHTPs),  SOFTWARE TECHNOLOGY PARKS (STPs) AND BIO-TECHNOLOGY PARKS (BTPs) 

Eligibility  

Units undertaking to export their entire production of goods and services

(except permissible sales in DTA), may be set up under export oriented Unit

(EOU) Scheme.  

PACKAGE FOR MARINE SECTOR  

a. Duty free import of specifies specialized inputs / chemicals

and flavoring oils as per a defined list shall be allowed to the

extent of 1% of FOB value of preceding financial years

export.  Use of these special ingredients for seafood

processing will enable us to achieve a higher value addition

and enter new export markets.

b. To encourage the existing mechanized vessels and deep sea

trawlers to adopt modern technology for scientific

exploitation of our marine resources in an eco-friendly

manner and boost marine sector exports, it is proposed to

allow import of monofilament long line system for tuna

fishing at a concessional rate of duty.

c. A self removal procedure for clearance of seafood subject to

wastage norms. 

MAJOR MARINE ITEMS WHICH ARE EITHER   PROHIBITED /

RESTRICTED ARE AS FOLLOWS:-

 

Sl.

No.

Tariff

Items

HS Code

 

Unit

Item Description Export

policy

Nature of

Restriction

1. 0508 00

50

Kg. Sea Shells, including

polished sea shells and

handicrafts made out of

those species included

in the Schedules of the

Wild Life (Protection)

Act, 1972.

Prohibited Not

permitted to

be exported

2. 1212 20

10

1212 20

90

Kg. Seaweeds of all types,

including G-edulis but

excluding brown

seaweeds and

agarophytes of Tamil

Nadu Coast origin in

processed form.

Restricted Exports

permitted

under

license

3. 0302 69

30

0303 79

50

Kg. Fresh or Chilled or

Frozen silver pomfrets

of weight less than

300gms.

Restricted Exports

permitted

under

license

4. 0303 79

99

Kg. Beche-de-mer Prohibited Not

permitted to

be exported

irrespective

of its size.

5.       Prohibited  

6. 0306 12

10

Kg. Sand Lobster (under

sized)

Prohibited Not

permitted to

be exportedSource:www.mpeda.com

QUALITY CONTROL:

Quality & Food Safety is the foundation of any food processing industry. In the sea food industry, quality control is a very vital element as quality of the products processed is highly heterogeneous and perishable in nature, particularly under tropical conditions. Realizing this, the industry has adopted modern methods of handling, processing besides adequate quality control measures to improve the quality of sea food.

Over the past few years, safety has become very topical subject eliciting a great deal of public concern particularly in the developed countries, where food safety offences are now regarded at Government level.  Selling, offering for sale, possessing and or advertising for sale of food that does not comply with food safety requirements are now offences as per food safety requirements.  Enforcement Officers have been given very detailed and powerful new provisions for dealing with the process, premises and equipments that contravene the legislation or pose a threat to the health of the consumer. 

As technology advance and public awareness grows, consumers are becoming increasingly demanding in terms of the choice, quality, freshness, nutritional value and microbiological safety of food.  Advances in food technology has helped to curtail opportunities for microbiological hazards and significant developments in laboratory diagnosis such as the novel techniques developed viz: Polymerase Chain Reaction (PCR), High Performance Liquid Chromatograph coupled with Mass Spectrometry (HPLC with MS MS) etc. which facilitates not only the detection of pathogens / residue levels much more quickly but also to a level of minute sensitivity.  These developments have contributed to major improvement in ensuring safety of food.

To cope up with the increasing demand for safe food and to satisfy the needs of health / quality conscious consumers of the global seafood market, MPEDA has identified the following thrust areas for development / improvement and implement programmes as under:

i)    Product development for export:  

           1.Research and development of new products 

          2. Training in new technology and inviting overseas technical              experts to India

ii)   Quality improvement

o Imparting training to technologists of Indian seafood industry  on various aspects of quality control.

o Entrusting special research projects on quality problems withNational Research Institutes as and when required.

o Monitoring of seafood quality in landing and pre-processing  centers.

o Integrated development programme for upgrading seafoodquality by providing infrastructural facilities like pre-processing centers and setting up of mini lab towards quality assurance.

           Salient features of some of the standards now being implemented in India are given below:

The Regulations (EC)EC Directive No.91/493/EEC dated July 22, 1991 prescribes the health conditions for the production and placement of fish and fishery products on the unified European market and came into force with effect from 1.1.1993.

This Directive also lays down procedure for fixing conditions for imports from third countries, depending on health situation in those countries.  It stipulates that inspections may be carried out on the spot by experts from the Commission and the Member States  to assess the capability of the Competent Authority, to verify the conditions of production, storage and despatch of fish and fishery products to the European Union.  While fixing import conditions, the European Commission has taken into consideration the following:

The legislation of the exporting country  The organization of the Competent Authority of the exporting country. Actual health conditions during production, storage and dispatch Assurance, which the exporting country can give on compliance with EC

standards.  Name of the final authority which issues the health certificate  Organization of the final authority, its infrastructural facilities for

inspection, laboratory testing etc. The authority’s legal basis, which gives its powers and its facilities for

effectively verifying the implementation of the legislation in force.  

Having satisfied with all such requirements, the European Commission has approved imports from the approved establishments in India.

PROBLEMS OR CHALLENGES FACED BY THE EXPORTER:

1. Cut throat competition for raw material –The peak landings In the marine capture sector generally coincide with the peak season for exports. More than 60 percent of the landings occur during the post monsoon period which coincides with the highest export demand. Thus to restore parity between the demand and the supply, the raw materials are often purchased at exorbitant prices with even forward marketing with the boat owners . There can be chances of deterioration in quality due to non-availability and that too at affordable prices.

2. Heavy competition for target market - Too manyexporters chasing too few markets

There exists very huge competition for gaining access to the target markets. Japan, USA and European Union or Western Europe were the major fish importers from India, which accounted for about 60 to 65 per cent of the volume and about 70-75 per cent in value of Indian seafood export. Even though geographic diversification emerged with countries like Middle East and China with the strict quality regulations in US or EU, they still acco.unt for a major share (70-75 percent) in the foreign exchange earned through our export. Often price discrimination; brand positioning and market segmentation exists among the competing countries. It hasbeen found that the brands developed across the major competitors has provided an innate edge for them in thetarget markets in sustaining and generating a sizeable market

3. Low capacity utilization- More and more capacity generation leading to less and even lesser utilization

Realization of the capacity utilization was the major problem faced by them and the average capacity of the processing plan was found to be 32. 12 tones whereas the utilization was only.12.10 tones (37.70) percent. The results were also analyzed for the capacity utilization across the different quarters. It was found thatduring the period from October -December months contributed to 30.39per cent followed by January- March at28.29 per cent. The processing plants processed

minimal quantities during the period during July-August and April-June. The average quantum of marine fish products processed per processing plant was found to be 2,781.70 tones per annum

4. Higher cost of production and low margin of profit - Double edged sword The cost of production increased exorbitantly on account of high purchase prices of the exportable species and other operating expenses like labor cost, water and electricity. charges. The compliance cost of EU approval plant also increased manifold thus resulting in huge cost of production pegging the profit margin at minimal level. The high cost incurred for purchase at distant markets, compliance cost, establishment cost all resulted in higher unit cost of production

5. Uncertainty in Prices – Erratic global markets and demand habits There exists uncertainty in prices in theinternational market with the economic recession spreading to most of the target markets. The price uncertainties lead to delay in payments, loss in revenue.

6. Dictatorship of buyers - Paradox of buyers becoming price makers The export market is necessarily a buyers' market with the prices fixed by the international buyers . .The absence of-domestic demand coupled with the premium prices in the international market makes the products disposal at the whims and fancies of the importers. The exporters thus became a price taker than a price maker. The presence of such a buyers' market creates a dictatorship among the buyers In deciding the guidelines, quality criteria's and subsequent

RELEVANT NEWS ARTICLES:

1. Declining prices, improved supply and economic turmoil in the overseas markets have pushed down the value of Indian seafood exports by 25-30 % this year although the quantity of shipments may have shown a nominal increase.2. Mpeda ties up with FAO, Infofish of Malaysia.

The Marine Products Export Development Authority (Mpeda), under the Ministry of Commerce & Industry, has tied up with the Food and Agriculture Organisation (FAO) and Infofish, a Malaysia-based international body, for developing and marketing freshwater fish in India.

The project, under the FAO Common Fund for Commodities (CFC), is the first of its kind that envisages transfer technology for culture, production and marketing of value-added products from fresh water in India. The three-year project has four main components: market/product studies, technology transfer, investment promotion and capacity building and dissemination.

3. The Marine Products Export Development Authority (MPEDA) will conduct the second edition of Aqua Aquaria India 2013 in Vijayawada from February 8-10, 2013.

Aqua Aquaria India is the only show in its kind in Asia, which focuses on both aqua culture and ornamental fish sector. Andhra Pradesh has been selected particularly considering its contributions to the country’s aquaculture production. The international event showcases the latest technologies available in aquaculture and ornamental fisheries sector, besides business interactions.

4. With global demand for organic aquaculture products increasing at a rate of about 10-15 per cent a year, the Marine Products Export Development Authority proposes to actively promote the sector in suitable areas in the country.