TRADE COMPETITIVENESS AND EXPORT PERFORMANCE OF SHRIMPS IN INDIA WITH SPECIAL REFERENCE TO ANDHRA PRADESH
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Date
2019
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Acharya N G Ranga Agricultural University, Guntur
Abstract
Aquaculture in India is an important sector of food production, providing nutritional security to the food basket, besides contributing to the exports. It employs fourteen million people in different activities in the country. The total fish production during 2017-18 was 12.60 million tons of which nearly 65% was from inland sector. The total seafood exports during the period 2017-18 was 13.8 lakh tonnes as compared to 11.3 lakh tonnes in the previous year 2016-17. In rupee terms exports were valued at Rs. 45,106.89 crore in 2017-18 as against Rs. 37,870.90 crore in 2016-17, indicated of 21.35 per cent growth. Frozen shrimp maintained its position as the key contributor to the seafood export basket, accounting for 41 per cent in quantity and 68.46 per cent of the total dollar earnings. This indicates that major part of income from marine fishery flows from the export performance of shrimps. The Government of Andhra Pradesh created a policy for the rapid growth in fisheries and aquaculture for the period 201520, with a vision of promotion of “Andhra Pradesh as the Aqua hub of India”. Hence the present research work on “Trade competitiveness and export performance of shrimps in India with special reference to Andhra Pradesh” was undertaken with the following objectives: 1. to study the growth rates of shrimp production and exports in India and Andhra Pradesh 2. to analyze the direction and structural stability of Indian shrimp exports 3. to analyze the trade competitiveness of India’s shrimp exports in the world market 4. to analyze the factors influencing the export performance and trade competitiveness of shrimps in Andhra Pradesh.
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The secondary data on aqua products and shrimps in terms of quantity and value for India and Andhra Pradesh were collected from Marine Product Export Development Authority MPEDA, Food and Agriculture Organization (FAO) and trade Map data base developed by International Trade Centre (ITC), Geneva, Switzerland.
Primary data was collected from Andhra Pradesh because it is the hub of aquaculture in India along Visakhapatnam, Nellore and West Godavari districts were selected based on export potential and processing of shrimp. Thirty exporters were selected randomly.
The growth rates registered for shrimp exports were positive and significant in both India and Andhra Pradesh. In India the observed registered growth rate in shrimp exports were 7.03 per cent in terms of quantity and 10.73 per cent in terms of value during the period 1995-96 through 2017-18. In Andhra Pradesh during the observed registered growth rate in shrimp exports were 12.4 per cent in terms of quantity and 14.8 per cent in terms of value during the same period.
The instability is increasing in nature for both seafood exports and shrimp exports in India and Andhra Pradesh respectively during the overall period, 1995-96 to 2017-18 i.e. 0.11 and 0.3 seafood and shrimp exports respectively in India, 0.47 and 0.52 seafood and shrimp exports respectively in Andhra Pradesh.
The average unit price for Indian shrimps in USA market was higher than Japan, South East Asia, EU markets and Middle East. The share of shrimp exports during 2009-10 to 2017-18 was 7.8 per cent of the total world shrimp exports.
The direction of trade indicates that the European Union and other pooled countries were found to be highly loyal markets for Indian shrimp. Followed by USA, Japan and South East Asia, whereas China and Middle East were found be most unstable markets for Indian shrimp exports.
The Indian shrimp has relatively better comparative advantage in South East Asia and Middle East markets, whereas it was low in developed markets like European Union, USA and Japan. However there is a need to improve export competitiveness of Indian shrimp in developed markets like EU, USA and Japan to achieve high unit price realization. The shrimp exports from Andhra Pradesh had a significant comparative advantage in India. It reflects greater scope for the expansion of seafood export industry.
The shrimp exporters they give most preferences to those attributes which influence the shrimp exports in Andhra Pradesh are, the raw (frozen) form is a major influence on exports than other forms like value added products. This is due to the greater demand from South East Asian countries for raw (frozen) products. Certification and labeling plays a vital role in promoting the export of shrimps. Price attribute has a strong influence on exports if the quality of shrimp increases. The exporters are highly preferable for exporting large sized shrimps. In case branding foreign buyers’ brand had major influence on exports than own branding. Apart from these translucent with dusky bands colour with strong marine odour shrimps are more preferable for the exports.
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Years of experience in shrimp processing, BAP star rating and quantity of exports from A.P. were positively significant on revenue of shrimp industry in Andhra Pradesh whereas business operation was negatively significant. The availability of quality raw material was the most important constraint for the exporters followed by high cost of investment, lack of diversified products, poor technical advancement, uncertainty in prices, lack of research and development and competition among the exporters.
Description
D5944
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