India’s fisheries sector is undergoing rapid transformation, with a focus on advancing fish farming practices and promoting sustainability. This sector plays a crucial role on the global stage, as evidenced by the Blue Revolution which underscores the critical importance of fisheries and aquaculture in the country.
Termed as “sunrise sector”, India’s fisheries industry is poised to make a substantial impact on the economy in the near future due to its immense potential for growth and development.
India’s marine product sector
As the third largest fish producer globally, India plays a vital role in the global food system. Additionally, as the second largest aquaculture nation, the country contributes significantly to the supply of shrimp and fish worldwide. In the previous fiscal year, seafood exports in India exceeded Rs 60,000 crore, marking a record high and emphasizing the significance of the marine products sector in contributing to the country’s export revenue.
India also cultivates a variety of fish such as carps, catfish, and tilapia, playing a crucial role in the global food supply chain. The country’s fisheries sector greatly contributes to food and nutritional security, benefiting both domestic and international populations.
In terms of export volume, frozen shrimps are the main product exported from India, accounting for 40% of the volume and 70% of the value. Other exports include fish, cuttlefish, squids, dried items, and live and chilled items. Frozen fish is the second largest export, bringing in over Rs 5,500 crore. The US, Europe, and China are the primary importers of Indian seafood.
Budget push to fish farming
In the Union Budget of 2024, Finance Minister Nirmala Sitharaman unveiled major initiatives aimed at boosting the growth of the aquaculture industry. One of the key announcements included an allocation of Rs 20,000 crore to the Fisheries and Aquaculture Infrastructure Development Fund (FIDF). This funding will be utilised for the development and modernisation of various components of the aquaculture sector such as fishing centers, aqua parks, shrimp farming facilities, processing units, fishing harbors, and cold chain infrastructure, among others. The National Bank for Agriculture and Rural Development (NABARD) will extend financial support for these projects.
The finance minister announced a substantial decrease in Basic Customs Duty, lowering it from 15 percent to 5 percent on specific feedstock such as polychaete worms, shrimp, and fish feed to improve cost competitiveness. Additionally, various inputs essential for the production of shrimp and fish feed, such as Krill Meal, Fish lipid oil, and Crude fish oil, will be exempt from customs duty.
For FY25, the Department of Fisheries has been allocated Rs. 2,584.50 crore.
Fish farming
There are different types of fish farming include:
> Pond Systems: The pond system is a conventional approach to fish farming, involving the raising of fish in freshwater ponds.
> Cage Systems: In this method, fish are kept in enclosures or nets placed within bodies of water such as seas or lakes.
> Recirculating Systems: These cutting-edge indoor farming systems utilize water filtration and recycling techniques to reduce water consumption.
> Integrated Multitrophic Aquaculture (IMTA) involves combining various organisms from different levels of the food chain to improve both the efficiency and overall health of the environment.
How to start a fish farming business
> Conduct thorough research and planning before embarking on a fish farming venture. Familiarize yourself with market demands, preferred fish species, and regulatory requirements in your region.
> Choose a well-suited location that offers convenient access to clean water and meets the environmental needs of the selected fish species in terms of climate and soil type.
> It is essential to carefully consider the type of fish that best fits your requirements. Factors such as growth rate, compatibility, and market demand for the fish farming method chosen are all significant. Common choices include catfish, salmon, and tilapia.
> In accordance with Section 92 of the Food Safety and Standards regulations, fish vendors are required to hold an FSSAI license, which includes central authority and state authority permits. To ensure the legality of your business operations, it is important to comply with all regulations and obtain all necessary licenses.
> As establishing a fish farming business involves financial investment, it is advisable to create a budget and secure funding through a Business Loan from banks or NBFCs.
> Once the farm infrastructure is in place, acquire fingerlings or juvenile fish that align with your chosen species for cultivation.
> Regularly assess the water quality on your farm and implement any necessary modifications to ensure it is conducive for the fish being reared.
> Obtain premium fish seed from reputable suppliers to guarantee healthy yields and facilitate the success of your aquaculture venture.
> Successful fish farming operations rely on the proper implementation of biosecurity measures. This entails prioritizing tasks such as ensuring high-quality feeding, controlling predators, managing diseases, and consistently monitoring water quality.
> When the time comes to harvest the fish, it is crucial to implement appropriate measures to safely gather them.
> Further success in the fish farming business hinges on effectively promoting the venture, identifying target markets, and attracting customers. Expanding reach and achieving profitability are dependent on these key factors.
Investment needed for fish farming business
After familiarising yourself with the steps involved in starting a fish farming business, the next crucial task is to carefully assess the financial aspects. This evaluation is essential for effective financial planning and acquiring necessary funding, if required. Several factors influence the total costs involved, including but not limited to:
Construction or Land Development Costs: Ranging from Rs 5,000 to Rs 2,00,000
Fish Seed: Priced between Rs 10,000 and Rs 50,000
Fish Feed and Nutrition: Typically costing between Rs 20,000 and Rs 1,00,000
Monthly Labor Expenses: Estimated at Rs 10,000 to Rs 50,000 per month
Equipment Costs: Varying from Rs 15,000 to Rs 1,00,000
Monthly Maintenance Charges: Typically falling in the range of Rs 5,000 to Rs 20,000
Source: Hero FinCorp
These figures are approximate and can vary based on several factors such as the scale of your operation, location, and market conditions.