India has a coastline of over 7,500 kilometers and enormous inland water systems containing about 10 major river systems and numerous other small rivers and lakes, making it among the major aquaculture countries in the world. The country has witnessed enormous growth in fisheries and aquaculture over the years and currently stands in the top three fish producing countries in the world. The annual aquaculture and fish production have grown over 10 times over the past six decades. From a production capacity of 0.8 million metric ton of fisheries and aquaculture during 1950, the capacity grew to about 9.6 million metric ton by 2014. The growth in the production was impressive, along with the transformation of the fisheries and the aquaculture industry. Predominantly a marine fishing country during the early 1950s, the country has transformed itself into the inland fishing country by early 2000s. Inland aquaculture, which accounted for half the fish production in the early 2000s, currently accounts for over two-thirds of the fish production in the country. Along with this, the industry is also flourishing in international markets with exports from the country reaching record levels. During 2016-17, India exported about 113,500 metric ton of seafood, generating a revenue of about USD 6 billion. Moreover, using only 40% of the available 2.36 million hectares of tanks and ponds, India has a lot of potential in the aquaculture sector.
Government’s Financial Support is expected to Drive the Aquaculture Market Further
The Indian government has identified the potential of the aquaculture & fisheries industry in the country and has planned to provide a huge financial push to the industry. In the latest budget announcement, the Financial Minister Arun Jaitley announced a huge budget of INR 10,000 crore together for the Fisheries and Aquaculture Infrastructure Development Fund (FAIDF) and Animal Husbandry Infrastructure Development Fund (AHIDF). In addition, the Kisan Credit Card or KCC benefits were also extended to the aquaculture and animal husbandry farmers starting this year (2018). The fund is anticipated to improve the aquaculture market by developing the infrastructure of the aquaculture farms in the remote areas of the country. Andhra Pradesh, which ranks first in aquaculture in the country, has the mature infrastructure for the same. However, states like Odisha lack the sufficient infrastructure to increase the yield, and therefore, lag behind in the fish production. Effective utilization of the funds allocated is expected to drive aquaculture and fisheries in the rural areas, by providing adequate infrastructure to improve the yield and increase the production.
Effect of FAIDF and AHIDF on Animal Feed and Feed Additive Markets
The Indian animal husbandry industry has been unscientific and non-commercial since a few years or decades. Nevertheless, with the globalization and industrialization of the agriculture and animal husbandry sectors, commercial production technologies and betterment of yield by using nutritional animal feed have been witnessed. With investments coming in and the industry becoming organized, the feed and feed additives markets in the country are expected to witness a robust growth rate in the near future. Currently, most of the animal husbandry farmers make home-made feed for the animals, thus leaving the market extremely fragmented. However, with the increase in customer awareness over the importance of feed in increasing the yield and productivity of animal husbandry, the markets for feed and feed additives are expected to experience a bright future. With a huge support from the government, providing a fund of INR 10,000 crore to both animal husbandry and aquaculture sectors, a positive impact is expected on the Indian feed and feed additives markets. A large spike in demand is anticipated from both the poultry and aquaculture sectors, owing to the increasing in-house demand, as well as growing exports. The fund is also expected to support the cold chain management, which is a critical step for the preservation and transportation of aquaculture or meat produce, thus driving the aquaculture, as well as meat production in the country. With the changing dynamics and support from the government, the aquaculture and related industries, like animal feed and feed additives, are expected to experience a robust growth in the country.