Business Opportunity in Andhra Pradesh: Aquaculture and allied industries

Aquaculture:

Aquaculture refers to commercial farming of seafood such as fish, prawns and crabs. The produce is either sold fresh or in processed form in domestic and export market.  Aqua animals found in India can be divided into two categories: marine animals such as shrimps and crabs and inland fresh water fish including Rohu, Catla, Mrigala, Grass Carp.

The current Indian market[1] for sea food is estimated to be 10.07 million tonnes, valued at over INR 1 lakh crore, growing at a compounded annual growth rate (CAGR) of 5% in volume. The processed fish segment (although only 12% of the total market now) is growing at a CAGR of 10% in terms of volume and over 25% in terms of value.

The growth of the aqua industry has spurred the growth of a large number of supporting industries such as manufacturing fish feed and equipment/products for catching and processing fish.

Why Andhra Pradesh?

Andhra Pradesh is the largest producer and exporter of seafood (see Table 1) in the country.  Aquaculture is an attractive opportunity in coastal regions of Andhra Pradesh such as Srikakulam, Vizianagaram,Visakhapatnam, Krishna, Guntur, Prakasam, Nellore and East and West Godavari.

Table 1: Major fish producing states in India (2014-2015) 

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Source: National Fisheries Development Board

What are the Opportunities offered by allied industries?

These include opportunities related to manufacturing products and equipment used in farming and processing of sea animals.

 

Table 2: Aqua culture and allied industries

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What is the Government support available to this industry?

There are a number of incentives available to entrepreneurs in this sector, including schemes from National Fisheries Development Board (NFDB), Department of Fisheries (Andhra Pradesh) and Department of industries (Andhra Pradesh). These are of two forms:

  1. Farmers are given subsidy to purchase equipment such as Aerators that mechanize the farming
  2. Entrepreneurs are offered incentives to set up manufacturing facilities/processing facilities. For example, as part of Fisheries Policy of Andhra Pradesh, entrepreneurs are offered interest subvention/subsidy of 6% on the loan taken for setting up the unit for ice processing plants and feed manufacturing units.

For more information on these subsidy schemes, please click this links:

http://www.ap.gov.in/wp-content/uploads/2015/12/31102015AHF_MS30.pdf

http://nfdb.gov.in/pdf/GL.pdf

How can we help?

FineTrain enables entrepreneurs to assess and understand new business opportunities. Our services include market research, business feasibility studies and business diagnostics – we can help you in understanding the feasibility and viability of aquaculture and related opportunities and suitable government schemes. We also offer support in executing your ideas by connecting you with sector experts and professionals.

Call us @ 800 888 4932,

Write to us- bchhatre@finetrain.com

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[1]  Market size has been estimated  by assuming production at 10.9 million tonnes  (as per data from National Fisheries Development Board)  and a price of 100 INR per kg

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