The changes to the aquaculture policy is expected to enhance coverage of shrimp farming and create more job opportunities in coastal areas, A Ramachandran, Vice-Chancellor, Kerala University of Fisheries and Ocean Studies, has said.

Changes brought out in the FDI policy of removing restrictions of ‘controlled conditions’ for investments will definitely expand the areas for aquaculture purpose and increase GDP contribution.

Since India is facing stagnation in marine landings and has little scope for expansion in this sector, more investments in the inland sector will rejuvenate the fisheries sector. About 14 million people depend directly on this sector, with a contribution of 1.1 per cent to GDP, he said.

According to him, the latest FDI policy in the pisciculture/aquaculture sector is to do away with the controlled conditions.

Earlier method

In the case of pisciculture and aquaculture, scope of the term ‘controlled conditions’ covers – aquariums, hatcheries where eggs are artificially fertilised, and fry are hatched as well as incubated in a enclosed environment with artificial climate control. These conditions are now dropped under the revised Policy, he said. The automatic route allows Indian companies engaged in pisciculture and aquaculture business to issue shares to foreign investors up to 100 per cent of their paid-up capital in Indian companies, he added.

Lakkaraju Satyanarain (Tikku), President of All India Shrimp Hatcheries Association, Kakinada, said the move would make it easier for overseas parent brood stock companies to enter India to start Brood Stock Multiplication centres.

These centres could develop the genetic system in the country, which would be much cheaper and beneficial to shrimp farmers. At present, many shrimp farms are dependent on imports for broods, with high customs duties. Kamalesh Gupta, Chairman and Managing Director of WestCoast Group, said that 100 per cent FDI would open up the sector to new avenues of financing as well as access to advanced international and cage culture technology.

Land allotment

Aquaculture in India is based largely on shrimps and low value fish. The new initiative will allow expanding the potential of genetically developing many more suitable species, considering the demographic landscape of the country.

However, AJ Tharakan, former National President of Seafood Exporters Association of India, feels the success of aquaculture FDI depends on the land policy of each State, as there will be requirement of large land area for production. Currently, there are restrictions on agriculture land holdings in each State – a constraint for the full-fledged development of aquaculture.

“Unless land can be handed over to companies on a long-term basis at reasonable lease rent, by the respective governments in coastal States, the whole exercise would be in vain”, he said.

Currently, 80 per cent of the production is concentrated in Andhra Pradesh, and a favourable land policy will facilitate Gujarat, Tamil Nadu, and Odisha to join the race, he added.

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