Lok Sabha Question No. 2412 (UNSTARRED), answered on 2015-12-14
Subject: Export of Marine Food
Ministry: COMMERCE AND INDUSTRY
Asked by: AJAY (TENI) MISRA, HARISHCHANDRA DEORAM CHAVAN

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 2412 TO BE ANSWERED ON 14 TH  DECEMBER, 2015

## EXPORT OF MARINE FOOD

## 2412(H). SHRI AJAY MISRA TENI: SHRI HARISHCHANDRA CHAVAN:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

- a) the quantity and value of marine food exported to the countries during the last three years and the current year, year and item-wise;
- b) whether the United States (US) is a prime destination for export of marine food and if so, the details thereof;
- c) whether the US has put certain conditions on the import of marine foods from India and if so, the details thereof;
- d) the details of the assistance/subsidy provided by the Government to the exporters of marine food and spices; and
- e) the  steps  taken  by  the  Government  to  boost  exports  of  marine  food  and  spices  to foreign countries especially african countries?

## ANSWER

वाणिज् य एवं उद्योग राज् य मंत्री )णीमीी स मलमा नीीारमि((स्वींत्र प्रभार ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

## (a) The quantity and value of marine products exported during the last three years:

| YEAR     |   Quantity inMT |   Value in Rs.Crore |   US $ Million |
|----------|-----------------|---------------------|----------------|
| 2012-13  |          928215 |             18856.3 |        3511.67 |
| 2013-14  |          983756 |             30213.3 |        5007.7  |
| 2014-15  |         1051243 |             33441.6 |        5511.12 |
| 2015-16* |          410971 |             14150.6 |        2220.57 |

The Market wise & Item wise export of marine products from India during the last three years are given in Annexure - I.

- (b) Yes, USA is the single largest market for marine products with a share of 26.46% in value terms. Export of marine products to USA for the last three years is given below.

## Export of Marine Products to USA

|   Year | Quantity in MT   | Value in Rs. Crore   | US $ Million   |
|--------|------------------|----------------------|----------------|
|  92447 | 4,026.48         | 747.45               | 2012-13        |
| 110880 | 7,744.67         | 1,286.04             | 2013-14        |
| 129667 | 8,830.12         | 1,458.24             | 2014-15        |
|  84005 | 4596.75          | 723.04               | 2015-16*       |

*Provisional April-September 2015

- (c) Yes, import of marine products are subject to import regulations and inspections of US FDA. A foreign facility (plant) is also required to be registered by US FDA under Food Safety Modernisation Act (FSMA). HACCP implementation by the manufacturer is a primary requirement for export of marine products. The main issues faced by the Indian exporters while exporting to USA are Anti Dumping Duty (ADD) on export of Indian Shrimp and Target dumping and zeroing. A detailed note is  enclosed as Annexure - II.
- (d) The  details  of  Financial  Assistance  /  subsidy  provided  by  Government  to  the exporters  of  Marine  Foods  and  Spices    is  given  in Annexure  -  III  &  Annexure  IV respectively.
- (e) India is exporting to 25 African nations. In order to promote Indian seafood export to Africa, the following steps were taken:-
- (i) A trade delegation from MPEDA visited Mauritius during 21-24 February 2011 to explore the possibility of increasing export to Maurtius. Delegation stressed on the requirement  of  joint  ventures  in  fish  processing,  oceanic  fishing  &  aquaculture between India & Mauritius.
- (ii) MPEDA participated in the 'SAITEX' fair conducted at South Africa during 21 st to 23 rd  June 2015 at Johannesburg to promote Indian Seafood.
- (iii) MPEDA  is  exploring  new  markets  for  marine  products  in  Nigeria,  Benin, Cameroon  &  Chad.  MPEDA  is  also  supportive  of  mounting  a  trade  delegation  to these African countries.
- (iv) MPEDA has established  3  residue  control  Laboratories,  19  ELISA  labs  for primary screening of raw materials and 21 outposts to cater the sampling requirements.
- (v) MPEDA also conducts HACCP training programmes for facilitating  HACCP implementation by the processing plants.
- (vi) Awareness  programmes  are  also  conducted  by  NETFISH  and  NaCSA  to improve quality at primary production level.
- (vii) MPEDA is operating  various  financial  assistance  schemes  for  boosting  the export of marine food to various countries including the African countries.

Government through the Spices Board is implementing various export development and promotion programmes for boosting the export of spices and spice products to the countries including  African countries. The major schemes implemented by the Spices Board are as under:-

- (i) support  exporters  to  adopt  high  tech  processing  technologies  and  also  to upgrade existing processing facilities for high end value addition.
- (ii) Support for quality certification and establishment of in-house labs
- (iii) Research on new applications of spices & new product development
- (iv) Promotion of Indian Spice Brand abroad
- (v) Setting up of infrastructure for common cleaning, grading, processing, packaging, storing facilities (Spices Park) in major spice growing/marketing centres.
- (vi) Promotion of organic spices
- (vii) Participation in international fairs and exhibitions
- (viii) Quality evaluation and control of spices for export.

## Annexure - 1

| ITEM WISE EXPORT OF MARINE PRODUCTS (2012-13 - 2014-15) Q: Quantity in MT, V: Value in Rs. Crore, $: US Dollar Million   | ITEM WISE EXPORT OF MARINE PRODUCTS (2012-13 - 2014-15) Q: Quantity in MT, V: Value in Rs. Crore, $: US Dollar Million   | ITEM WISE EXPORT OF MARINE PRODUCTS (2012-13 - 2014-15) Q: Quantity in MT, V: Value in Rs. Crore, $: US Dollar Million   | ITEM WISE EXPORT OF MARINE PRODUCTS (2012-13 - 2014-15) Q: Quantity in MT, V: Value in Rs. Crore, $: US Dollar Million   | ITEM WISE EXPORT OF MARINE PRODUCTS (2012-13 - 2014-15) Q: Quantity in MT, V: Value in Rs. Crore, $: US Dollar Million   | ITEM WISE EXPORT OF MARINE PRODUCTS (2012-13 - 2014-15) Q: Quantity in MT, V: Value in Rs. Crore, $: US Dollar Million   |
|--------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|
| Item                                                                                                                     |                                                                                                                          | 2012-13                                                                                                                  | 2013-14                                                                                                                  | 2014-15                                                                                                                  | Apr-Sept 2015*                                                                                                           |
| Fr. Shrimp                                                                                                               | Q:                                                                                                                       | 228620                                                                                                                   | 301435                                                                                                                   | 357505                                                                                                                   | 196248                                                                                                                   |
|                                                                                                                          | V:                                                                                                                       | 9706.36                                                                                                                  | 19368.30                                                                                                                 | 22468.12                                                                                                                 | 10320.87                                                                                                                 |
|                                                                                                                          | $:                                                                                                                       | 1803.26                                                                                                                  | 3210.94                                                                                                                  | 3709.76                                                                                                                  | 1622.64                                                                                                                  |
| Fr.Fish                                                                                                                  | Q:                                                                                                                       | 343876                                                                                                                   | 324359                                                                                                                   | 309434                                                                                                                   | 79722                                                                                                                    |
|                                                                                                                          | V:                                                                                                                       | 3296.86                                                                                                                  | 4294.81                                                                                                                  | 3778.5                                                                                                                   | 1171.76                                                                                                                  |
|                                                                                                                          | $:                                                                                                                       | 617.59                                                                                                                   | 708.63                                                                                                                   | 619.66                                                                                                                   | 181.92                                                                                                                   |
| Fr.Cuttlefish                                                                                                            | Q:                                                                                                                       | 63296                                                                                                                    | 68577                                                                                                                    | 82353                                                                                                                    | 21499                                                                                                                    |
|                                                                                                                          | V:                                                                                                                       | 1354.28                                                                                                                  | 1386.98                                                                                                                  | 1833.21                                                                                                                  | 517.57                                                                                                                   |
|                                                                                                                          | $:                                                                                                                       | 251.54                                                                                                                   | 228.13                                                                                                                   | 300.69                                                                                                                   | 80.57                                                                                                                    |
| Fr. Squid                                                                                                                | Q:                                                                                                                       | 75387                                                                                                                    | 87437                                                                                                                    | 69569                                                                                                                    | 37816                                                                                                                    |

|               | V:   |   1378.08 |   1731.97 |          1275.25 |    692.57 |
|---------------|------|-----------|-----------|------------------|-----------|
|               | $:   |    256.9  |    284.6  |    209.84        |    107.85 |
| Dried items   | Q:   |  72953    |  67901    |  70544           |   9600    |
|               | V:   |    819.9  |    998    |   1010.16        |    226.43 |
|               | $:   |    152.81 |    167.89 |    165.52        |     35.56 |
| Live items    | Q:   |   4373    |   5080    |   5488           |   2145    |
|               | V:   |    197.89 |    281.85 |    301.51        |    116.26 |
|               | $:   |     36.82 |     46.7  |     49.62        |     18.27 |
| Chilled items | Q:   |  26868    |  19755    |  31404           |  16100    |
|               | V:   |    537.11 |    527.84 |    635.93        |    340.95 |
|               | $:   |     99.87 |     88.48 |    104.71        |     53.7  |
| Others        | Q:   | 112841    | 109212    | 124947           |  47840    |
|               | V:   |   1565.78 |   1623.5  |   2138.94        |    764.19 |
|               | $:   |    292.86 |    272.34 |    351.31        |    120.07 |
| Total         | Q:   | 928215    | 983756    |      1.05124e+06 | 410971    |
|               | V:   |  18856.3  |  30213.3  |  33441.6         |  14150.6  |
|               | $:   |   3511.67 |   5007.7  |   5511.12        |   2220.57 |

| MARKET WISE EXPORT OF MARINE PRODUCTS FOR THREE YEARS Q: Quantity in Tons, V: Value in Rs. Crores, $: USD Million   | MARKET WISE EXPORT OF MARINE PRODUCTS FOR THREE YEARS Q: Quantity in Tons, V: Value in Rs. Crores, $: USD Million   | MARKET WISE EXPORT OF MARINE PRODUCTS FOR THREE YEARS Q: Quantity in Tons, V: Value in Rs. Crores, $: USD Million   | MARKET WISE EXPORT OF MARINE PRODUCTS FOR THREE YEARS Q: Quantity in Tons, V: Value in Rs. Crores, $: USD Million   | MARKET WISE EXPORT OF MARINE PRODUCTS FOR THREE YEARS Q: Quantity in Tons, V: Value in Rs. Crores, $: USD Million   | MARKET WISE EXPORT OF MARINE PRODUCTS FOR THREE YEARS Q: Quantity in Tons, V: Value in Rs. Crores, $: USD Million   | MARKET WISE EXPORT OF MARINE PRODUCTS FOR THREE YEARS Q: Quantity in Tons, V: Value in Rs. Crores, $: USD Million   |
|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|
| Country                                                                                                             |                                                                                                                     | 2012-13                                                                                                             | 2013-14                                                                                                             | 2014-15                                                                                                             | (%)                                                                                                                 | Share %                                                                                                             |
| JAPAN                                                                                                               | Q:                                                                                                                  | 76648                                                                                                               | 71484                                                                                                               | 78772                                                                                                               | 10.20                                                                                                               | 7.49                                                                                                                |
| JAPAN                                                                                                               | V:                                                                                                                  | 1,999.59                                                                                                            | 2,463.83                                                                                                            | 3,040.26                                                                                                            | 23.40                                                                                                               | 9.09                                                                                                                |
| JAPAN                                                                                                               | $:                                                                                                                  | 372.57                                                                                                              | 410.95                                                                                                              | 502.29                                                                                                              | 22.23                                                                                                               | 9.11                                                                                                                |
| USA                                                                                                                 | Q:                                                                                                                  | 92447                                                                                                               | 110880                                                                                                              | 129667                                                                                                              | 16.94                                                                                                               | 12.33                                                                                                               |
| USA                                                                                                                 | V:                                                                                                                  | 4,026.48                                                                                                            | 7,744.67                                                                                                            | 8,830.12                                                                                                            | 14.02                                                                                                               | 26.41                                                                                                               |
| USA                                                                                                                 | $:                                                                                                                  | 747.45                                                                                                              | 1,286.04                                                                                                            | 1,458.24                                                                                                            | 13.39                                                                                                               | 26.46                                                                                                               |
| EUROPEAN UNION                                                                                                      | Q:                                                                                                                  | 158357                                                                                                              | 174686                                                                                                              | 188031                                                                                                              | 7.64                                                                                                                | 17.89                                                                                                               |
| EUROPEAN UNION                                                                                                      | V:                                                                                                                  | 4,176.42                                                                                                            | 6,129.69                                                                                                            | 6,715.58                                                                                                            | 9.56                                                                                                                | 20.08                                                                                                               |
| EUROPEAN UNION                                                                                                      | $:                                                                                                                  | 777.41                                                                                                              | 1,013.28                                                                                                            | 1,106.67                                                                                                            | 9.22                                                                                                                | 20.08                                                                                                               |
| CHINA                                                                                                               | Q:                                                                                                                  | 87776                                                                                                               | 75783                                                                                                               | 59519                                                                                                               | -21.46                                                                                                              | 5.66                                                                                                                |
| CHINA                                                                                                               | V:                                                                                                                  | 1,444.86                                                                                                            | 1,766.72                                                                                                            | 1,349.00                                                                                                            | -23.64                                                                                                              | 4.03                                                                                                                |
| CHINA                                                                                                               | $:                                                                                                                  | 269.47                                                                                                              | 293.12                                                                                                              | 221.44                                                                                                              | -24.45                                                                                                              | 4.02                                                                                                                |
| SOUTH EAST ASIA                                                                                                     | Q:                                                                                                                  | 340944                                                                                                              | 380061                                                                                                              | 409931                                                                                                              | 7.86                                                                                                                | 38.99                                                                                                               |
| SOUTH EAST ASIA                                                                                                     | V:                                                                                                                  | 4,357.28                                                                                                            | 8,046.59                                                                                                            | 8,620.85                                                                                                            | 7.14                                                                                                                | 25.78                                                                                                               |
| SOUTH EAST ASIA                                                                                                     | $:                                                                                                                  | 811.80                                                                                                              | 1,320.95                                                                                                            | 1,416.82                                                                                                            | 7.26                                                                                                                | 25.71                                                                                                               |
| MIDDLE EAST                                                                                                         | Q:                                                                                                                  | 41419                                                                                                               | 58040                                                                                                               | 64608                                                                                                               | 11.32                                                                                                               | 6.15                                                                                                                |
|                                                                                                                     | V:                                                                                                                  | 1,113.34                                                                                                            | 1,599.37                                                                                                            | 2,020.86                                                                                                            | 26.35                                                                                                               | 6.04                                                                                                                |
|                                                                                                                     | $:                                                                                                                  | 209.26                                                                                                              | 272.65                                                                                                              | 333.10                                                                                                              | 22.17                                                                                                               | 6.04                                                                                                                |
| OTHERS                                                                                                              | Q:                                                                                                                  | 130623                                                                                                              | 112823                                                                                                              | 120716                                                                                                              | 7.00                                                                                                                | 11.48                                                                                                               |
| OTHERS                                                                                                              | V:                                                                                                                  | 1,738.29                                                                                                            | 2,462.40                                                                                                            | 2,864.93                                                                                                            | 16.35                                                                                                               | 8.57                                                                                                                |
| OTHERS                                                                                                              | $:                                                                                                                  | 323.71                                                                                                              | 410.71                                                                                                              | 472.56                                                                                                              | 15.06                                                                                                               | 8.58                                                                                                                |
| TOTAL                                                                                                               | Q:                                                                                                                  | 928215                                                                                                              | 983756                                                                                                              | 1051243                                                                                                             | 6.86                                                                                                                | 100                                                                                                                 |
| TOTAL                                                                                                               | V:                                                                                                                  | 18856.26                                                                                                            | 30213.26                                                                                                            | 33441.61                                                                                                            | 10.69                                                                                                               | 100                                                                                                                 |
| TOTAL                                                                                                               | $:                                                                                                                  | 3511.67                                                                                                             | 5007.70                                                                                                             | 5511.12                                                                                                             | 10.05                                                                                                               | 100                                                                                                                 |

## Details of Assistance/Subsidy provided by MPEDA

## Annexure - II.

## Main issue faced by Indian Exporters to United States

## 1.  ANTI-DUMPING DUTY ON EXPORTS OF INDIAN SHRIMP TO USA:

Based  on  the  representations  of  Southern  Shrimp  Producers  Alliance,  the  association  of local shrimp producers in USA, the US DOC after its investigation has initiated anti-dumping duty on shrimp imports from India since 2004. They had contended that India was selling shrimp to USA at a price lower than that to any other country.  The initial anti dumping duty imposed was 10.17%. This was reviewed subsequently. Every year there is an Administrative Review on the duty to be collected and so far 9 administrative reviews have been conducted.  The country average duty applicable to the initial respondents after each review given below:

| Administrative Review      | Country average ADD (%)   | Review period            |
|----------------------------|---------------------------|--------------------------|
| 1 st Administrative Review | 7.22                      | 04/08/2004 to 31/01/2006 |
| 2 nd Administrative Review | 1.69                      | 01/02/2006 to 31/01/2007 |
| 3 rd Administrative Review | 0.79                      | 01/02/2007 to 31/01/2008 |
| 4 th Administrative Review | 2. 67                     | 01/02/2008 to 31/01/2009 |
| 5 th Administrative Review | 1.69                      | 01/02/2009 to 31/01/2010 |
| 6 th Administrative Review | 2.51                      | 01.02.2010 to 31.01.2011 |
| 7th Administrative Review  | 3.49                      | 01.02.2011 to 31.01.2012 |
| 8 th Administrative Review | 2.49                      | 01.02.2012 to 31.01.2013 |
| 9 th Administrative Review | 2.96                      | 01.02.2013 to 31.01.2014 |

The USITC after its Sunset Review voted to continue ADD for another 5 years.

## Targeted dumping and zeroing:

US DOC started using the process of targeted dumping analysis by following the Alternative comparison  methodology  and  applying  the  process  of  zeroing  during  the  7 th and  8 th administrative  reviews,  due  to  which  the  dumping  margin  was  imposed  to  the  mandatory respondents and other un-reviewed respondents as follows.

| AR Period   | Margin for mandatory respondents   | Margin for others   |
|-------------|------------------------------------|---------------------|
| AR 8        | 1.97 & 3.01%                       | 2.49%               |
| AR 9        | 2.63 & 3.28%                       | 2.96%               |

This would have been significantly low or even zero, if the targeted dumping measures and zeroing were not introduced in the above mentioned AR' s.

## Annexure - III

|                                                                          | 2013-14                        | 2013-14              | 2014-15                        | 2014-15              |
|--------------------------------------------------------------------------|--------------------------------|----------------------|--------------------------------|----------------------|
| Name Of Scheme                                                           | Amount Of Financial Assistance | No. Of Beneficiaries | Amount Of Financial Assistance | No. Of Beneficiaries |
| Sea Freight Assistance                                                   | 636.04                         | 69                   | 789.45                         | 66                   |
| Developmental Assistance For Ornamental Fishes                           | 17.96                          | 8                    | 17.62                          | 5                    |
| Group Insurance Scheme                                                   | 10.81                          | 21631                | 6.93                           | 13866                |
| Installation Of Insulated Fish Hold And Ice Making Machine               | 95.93                          | 131                  | 117.71                         | 248                  |
| Assistance For Conversion Of Existing Fishing Vessel To Tuna Long Liners | 83.48                          | 33                   | 0                              | 0                    |
| Technology Up gradation Scheme For Marine Products                       | 736.94                         | 9                    | 1066.44                        | 15                   |
| Setting Up Of Large Cold Storages (Lcs)                                  | 247.33                         | 9                    | 255.43                         | 13                   |
| Acquisition Of Refrigeration Trucks/Containers                           | 3.5                            | 1                    | 3.5                            | 1                    |
| Creation Of Basic Facilities (New) For Chilled Fish/ Chilled Tuna        | 0                              | 0                    | 17.14                          | 2                    |
| Insulated Fish Boxes                                                     | 32.86                          | 1114                 | 33.24                          | 544                  |
| Setting Up Of Modern Ice Plants                                          | 8.35                           | 1                    | 0                              | 0                    |
| Quality Control (Pre Processing & Mini Lab)                              | 59.598                         | 16                   | 67.2                           | 17                   |
| Establishment Of Hatchery                                                | 12                             | 2                    | 30                             | 5                    |
| New Farm Development                                                     | 65.42                          | 136                  | 112.15                         | 122                  |
| Effluent Treatment System                                                | 18.87                          | 14                   | 12                             | 8                    |
| PCR Labs                                                                 | 35.38                          | 10                   | 27.43                          | 8                    |
| Aqua Farmers Societies                                                   | 18                             | 9                    | 11.5                           | 8                    |
| Establishment Of Nursery                                                 | 0                              | 0                    | 6.16                           | 3                    |
| Traditional Farms/ Padasekharams                                         | 2.45                           | 1                    | 0                              | 0                    |
| Organic Aqua Farming                                                     | 24.18                          | 102                  | 5.01                           | 13                   |
| Ornamental Fish Breeding Units.                                          | 248.11                         | 64                   | 201.64                         | 45                   |
| Extension                                                                | 2.5                            |                      | 20.03                          |                      |
| Total                                                                    | 2359.70                        | 23360                | 2800.58                        | 14988                |

Annexure IV Statement  with  regard  to  assistance/subsidy  provided  by  the  Government  to  the

## exporter of Spices:

| Component                        | Scale assistance                                                                                                                                |
|----------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| Infrastructure Development       | 33% of cost infrastructure development export land and subject maximum of lakh for areas and 50% the cost or Rs. lakh for NE and special areas. |
| Trade Promotion                  | Up to 50,000 exporter per for business abroad                                                                                                   |
| Product Development & Research   | 50% of cost subject to maximum of Rs. lakh per during the period.                                                                               |
| Spice Processing in NE Region    | 33% of cost of all types processing subject to maximum of Rs. lakhs beneficiary the Plan period.                                                |
| Market Study Abroad              | 100% of cost is met Board's budget.                                                                                                             |
| Promotion of Indian spice brands | Interest loan 100% slotting/listing and promotional measures for first year and                                                                 |

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|                                                                 | of all measures will given by the                                                                                                                        |
|-----------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| Participation in International Fairs/Meetings/Seminars/Training | Reimburse 50% of the (economy excursion subject to maximum of 60000/- for Spices House holders and 40000/- for of regd. Brand Organic per exporter year. |

******