India has a coastline of more than 7,500 kilometers and huge inland water systems containing around 10 major river systems and many other small rivers and lakes, making it one of the world’s leading aquaculture countries. The country has witnessed tremendous growth in fisheries and aquaculture over the years and is currently among the top three fish-producing countries in the world. Annual aquaculture and fish production have grown more than 10 times in the last six decades. From a production capacity of 0.8 million metric tons of fisheries and aquaculture during 1950, capacity grew to around 9.6 million metric tons in 2014. Production growth was impressive, along with the transformation of the fishing and aquaculture industry. Predominantly a marine fishing country in the early 1950s, the country transformed into an inland fishing country in the early 2000s. Inland aquaculture, which accounted for half of fish production in the early 2000s 2000, currently represents more than two thirds of the country’s fish production. Along with this, the industry is also flourishing in international markets with the country’s exports reaching record levels. During 2016-17, India exported around 113,500 metric tons of seafood, generating revenue of around USD 6 billion. Furthermore, by using only 40% of the available 2.36 million hectares of tanks and ponds, India has great potential in the aquaculture sector.
Government financial support is expected to further boost the aquaculture market
The Indian government has identified the potential of the aquaculture and fisheries industry in the country and has planned to provide a major financial boost to the industry. In the latest budget announcement, Finance Minister Arun Jaitley announced a huge INR 10,000 crore budget for the Fisheries and Aquaculture Infrastructure Development Fund (FAIDF) and the Animal Husbandry Infrastructure Development Fund. (AHIDF). In addition, the benefits of the Kisan or KCC credit card were also extended to fish farmers and ranchers starting this year (2018). The fund is anticipated to improve the aquaculture market by developing the infrastructure of aquaculture farms in remote areas of the country. Andhra Pradesh, which ranks first in aquaculture in the country, has a mature infrastructure for the same. However, states like Odisha lack sufficient infrastructure to increase yields and therefore lag behind in fish production. The effective use of the allocated funds is expected to boost aquaculture and fisheries in rural areas, providing the right infrastructure to improve performance and increase production.
Effect of FAIDF and AHIDF on the Animal Feed and Feed Additives Markets
The animal husbandry industry in India has been unscientific and non-commercial for some years or decades. However, with the globalization and industrialization of the agriculture and livestock sectors, commercial production technologies and performance improvements through the use of nutritious animal feed have been witnessed. With the inflow of investment and organization of the industry, the country’s feed and feed additive markets are expected to experience a robust growth rate in the near future. Currently, most farmers make homemade feed for the animals, which leaves the market very fragmented. However, with increasing customer awareness of the importance of feed in increasing animal husbandry performance and productivity, the feed and feed additive markets are expected to experience a bright future. With strong support from the government, providing a fund of INR 10,000 crore to the animal husbandry and aquaculture sectors, a positive impact is expected in the Indian feed and feed additive markets. A large increase in demand from the poultry and aquaculture sectors is anticipated, due to growing domestic demand, as well as increasing exports. The fund is also expected to support cold chain management, which is a fundamental step for the preservation and transportation of aquaculture or meat products, thus boosting aquaculture and meat production in the country. With the changing dynamics and government support, aquaculture and related industries such as animal feed and feed additives are expected to experience robust growth in the country.