Indian coastline has witnessed a substantial influx of sardines since last year, significantly benefiting the fish meal industry that produces vital raw materials for the aquaculture feed sector. Indian producers capitalized on the global shortage of sardine-based fish meal, resulting in higher exports and improved prices.
Fish meal, a product derived from underutilized sea-caught fish and fish waste, plays a crucial role in the production of fish and animal feed. The surging demand for fish meal is driven by the rapid growth of the aquaculture industry, which dominates seafood exports. Sardine-based fish meal, in particular, boasts higher oil content, rendering it a nutrient-rich choice for enhancing the growth of fish.
Sardine, known for its affordability and popularity as an edible fish, had faced limitations in its utilization by fish meal units due to shortages in recent years. However, sardine populations have experienced a resurgence along the Indian coasts, notably in Kerala and Karnataka, after a gap of approximately three years in 2022.
According to estimates from the Central Marine Fisheries Research Institute (CMFRI), sardine landings reached 251,257 tonnes last year. This marked a significant increase compared to the previous two years when sardine landings ranged between 80,000 and 90,000 tonnes. In 2019 and 2018, sardine landings were between 145,000 and 155,000 tonnes. The last major sardine haul occurred in 2017 when the catch exceeded 337,000 tonnes.
There are approximately 68 fish meal production units primarily located in Karnataka, Kerala, Tamil Nadu, and Maharashtra, collectively producing around 300,000 tonnes annually.
Dawood Sait, President of the Indian Marine Ingredients Association, explained, “There was a global shortage as fish meal volumes from Peru, the biggest producer, was down. So, we were able to export more at better prices of $1,500 per tonne compared to around $1,200 in the previous year. In FY23, the export doubled to 50 percent of production.”
Peru’s fish meal industry predominantly relies on anchovies, while the Indian fish meal industry incorporates a variety of fish, including sardine, mackerel, and scad, in addition to anchovy for production. The global shortage of fish meal also drove up prices for fish oil, a byproduct of fish meal production, which India could command higher prices for due to lower production in Peru.
As exports of fish meal surged, fishermen benefitted from higher prices, receiving approximately Rs 40 per kg for their sardine catches, compared to Rs 15 to 20 per kg in previous years. Additionally, the oil content of the sardines was notably higher, at 10 percent or more.
Boat operators reported increased fish landings, particularly of sardines, attributed in part to reduced fishing activity during the initial Covid-19 lockdown and subsequent restrictions on fishing operations.
However, the booming export of fish meal led to increased costs for domestic shrimp feed units, as they had to pay more for the raw materials. Fish meal prices rose from Rs 135 to 150 per kg, an increase of Rs 30 to 40. Importing fish meal as an alternative proved difficult due to duties and a costly dollar exchange rate. Concerns persist that the fish meal shortage may continue as coastal states implement annual fishing bans during the monsoon season.
In response, the feed industry has called upon the government to impose duties or restrictions on fish meal exports to support the local feed industry. Despite India’s rapid growth in aquaculture, making it the second-largest shrimp producer globally after Ecuador, the fish meal industry has not kept pace with the demand, resulting in a supply shortage.
The potential for a continued sardine flow into Indian coasts in the coming year remains uncertain. CMFRI scientists believe they will be able to assess this by the second half of the year, depending on the catch volumes. They attribute the decrease in sardine catches partly to the El Nino weather phenomenon, which is associated with the warming of ocean surface temperatures in the Pacific Ocean. El Nino may have caused temperature disturbances in Indian waters, prompting sardines to migrate away from the coast. However, the return of sardines coincided with the onset of La Nina, the opposite of El Nino. Scientists suggest that even without El Nino, sardine depletion in the coasts can occur periodically.