India’s marine exports, especially driven by increasing global demand for shrimp, generate earnings over Rs 60,000 crore annually. However, the sector is still not regarded on the same level as agriculture and lacks a basic policy framework, says former fisheries secretary Tarun Shridhar. In an interaction with ET Online, he states
that India’s stagnant seafood consumption, overdependence on the US and European markets, and limited value-addition all stem from deeper structural gaps. These include absence of robust credit and frameworks as well as weak cold-chain and distribution systems. He contends that India’s next leap in this sector will require regulatory parity, market diversification, and stable access to critical feed inputs to keep farm output predictable. Without these foundations, he warns, India risks seeing its aquaculture growth plateau just as global competition intensifies. Edited excerpts:
ET: Shrimp farmers contribute the majority of India’s seafood exports, yet they lack the same institutional support available to rice or wheat farmers, say some experts. What specific policy frameworks are needed to bring aquaculture into India’s mainstream agriculture ecosystem?
Tarun Shridhar (TS): Shrimp farmers contribute significantly to India’s export economy, yet most of them still operate outside the institutional support structures that conventional agriculture enjoys. Mainstreaming aquaculture begins with policy parity. This includes formal recognition of aquaculture in agriculture for the purpose of credit, insurance, and input-linked assistance. When farmers have predictable access to these mechanisms, they can invest with greater confidence ..
Stronger institutional coordination is equally important. A dedicated aquaculture authority, or even a unified nodal system, can harmonise the roles of the fisheries, agriculture, commerce, and environment departments. This would reduce regulatory delays and offer clarity on land leasing, environmental compliance, and pond development.
Feed costs continue to shape farm viability. Farmers rely on a mix of feed ingredients, including fishmeal, oilseed meals, and plant-based proteins. As India scales its aquaculture ecosystem, reliable access to high-quality protein inputs, including established global sources such as US soybean meal, can support both competitiveness and resilience. Ensuring a stable supply of these inputs through efficient domestic channels or predictable import policies helps maintain consistent feed prices and and improves production efficiency. With improved institutional mechanisms, supportive regulations, and reliable access to key inputs, aquaculture can more fully integrate into India’s agricultural landscape.
ET: India exports 95% of its shrimp to Europe and the US, while domestic per capita seafood consumption stagnates. Is this primarily a demand issue, a distribution issue, or a cultural barrier, and which of these would be the easiest to address?
TS: India’s low per capita seafood consumption is influenced by demand, distribution, and cultural preferences. Among these, distribution is the most immediate and practical entry point for change. The domestic market has room to grow, but inadequate cold-chain facilities, inconsistent supply, and wide pricing fluctuations limit access for consumers, especially in urban and inland regions.
Improving storage, processing, and last-mile logistics can rapidly expand availability. Once consumers gain reliable access to fresh, affordable, and safe seafood, demand will grow naturally. Awareness regarding nutrition, hygiene and safe handling can further strengthen this trend by building trust among first-timers or hesitant consumers.
As domestic markets expand, the need for consistent farm output increases. This consistency is directly influenced by access to reliable feed ingredients. As India scales production for both export and domestic consumption, access to diverse protein sources, including competitively priced imports such as US soybean meal, supports stable growth cycles and predictable harvests. Balanced feed formulations anchored in dependable raw material supply make it easier for processors and distributors distributors to serve both domestic and export markets. Strengthening India’s distribution ecosystem can therefore unlock consumption more quickly than trying to shift cultural habits directly.
ET: The US market could shrink overnight due to tariff action. Considering our billion-dollar exposure, could you please provide the timeline for genuine diversification?
TS: India’s dependence on a small set of export destinations creates real vulnerability. Diversification is essential, but it is not an immediate process. It requires sustained engagement, the ability to meet a wide range of international standards and consistent competitiveness at the farm and processing levels.
India has begun exploring opportunities in East Asia, the Middle East, Africa, and Latin America. These initiatives are meaningful, but they remain early-stage. Genuine diversification needs stronger trade relationships, improved traceability, and reliable compliance with destination-specific certifications.
Competitiveness begins at the farm. Feed accounts for a major share of production cost, which means predictable access to key ingredients directly influences the ability to price products competitively in new markets.
As India seeks to diversify export markets, stable access to high-quality protein inputs, including globally available soymeal, becomes a strategic factor underpinning both cost efficiency and uniform product quality. These attributes are central to meeting the expectations of emerging markets. If pursued with a coordinated effort, meaningful diversification can begin to materialise within three to five years. Current steps are not tokenistic, but they require greater scale and urgency.
ET: India mainly exports raw frozen shrimp, while Vietnam adds 30-40% value through processing. Why has India not built backward linkages, and what incentives would unlock this?
TS: India’s shrimp exports have historically focused on high-volume, raw frozen products. This has limited the development of value-added processing. The reasons include inadequate cold-chain capacity, inconsistent supply from farms, and limited integration between farmers, processors, and exporters.
To build backward linkages, India must strengthen the economic case for value addition. This means enabling investment in modern processing facilities through capital support, offering tax benefits for value-added exports, and improving access to financing for technology upgrades. Workforce training and reliable cold-chain infrastructure in farming clusters are equally important.
A steady and predictable raw material base is essential for processors. Uniform size and consistent survival rates at the farm level determine whether value-added products can be produced efficiently. These outcomes depend on hatchery quality, farm management, and stable feed formulations. As India expands processing capacity, reliable access to high-quality inputs, including soymeal sourced through global supply chains, strengthens uniformity in growth and grading, which are central to value-ad ..
value-added product lines.
With the right incentives, infrastructure, and supply stability, India can capture more value domestically, enhance farmer incomes and close the gap with competitors like Vietnam.
Source Name : Economic Times