By – Samaira Prakash

Abstract:

The aquaculture sector in India currently faces a paradox, where the production of fishery remains on the rise, while there is minimal value addition, alongside a significant increase in externalities caused by the widespread discarding of fish waste. The 100% fish project, an initiative spearheaded by Iceland’s Ocean Cluster, offers the use of this discarded waste as a growing opportunity to utilise every part of fish and transform them into vital, high-value products. This article examines the Icelandic approach, where, following the launch of the 100% project, 90% of the Atlantic cod is utilised, and the price per fish has risen from $12 to $5,000 due to the development of high-end products such as medical-grade fish-skin grafts. Alongside this, it further amalgamates insights from academic research, policy frameworks, and various projects from across India, which together pave the way for an initiative akin to the one currently in place in Iceland. By leveraging institutional expertise from bodies such as ICAR-CMFRI and CIFT and aligning itself with sustainability goals and schemes like PMMSY, India can unlock several economic, social, and ecological benefits from what is currently discarded as ‘biodegradable waste’ and create a sustainable, inclusive, and circular fishery. 

India’s Untapped Blue Economy:

The Indian fisheries sector, from time immemorial, has proven vital for much of the rural Indian population, offering employment opportunities, nutrition, and export revenue; yet its potential remains largely untapped in each of these sectors. Currently ranked as the third-largest producer of fish globally, where an approximate 14.5 million people rely on aquaculture, and a coastline that stretches over 8,000 kilometres with an exclusive economic zone of over 2 million kilometres, its contribution to the national economy cannot be questioned, and is on the rise. However, the conundrum lies here: despite being a growing economy in terms of production, surpassing a total of 162 lakh tonnes in the annual term of 2021-2022, most of the catch is processed and sold for a fraction of their potential value. Upon the completion of the processing of each fish, vast quantities of waste, estimated between 20-80%, comprising their head, skin, bones, and scales, are discarded without being treated into open drains and water bodies, thereby leading to several environmental and health risks, along with deep economic losses – problems which find their reflections in the areas like Kasimedu in Chennai and Veraval in Gujarat which fight against declining returns, increased pollution and rising unemployment. 

Iceland’s Circular Revolution:

Iceland’s 100% Fish Project makes itself out to be the epitome of ‘waste to wealth’ functioning in the seafood industry. The project was initiated to address Iceland’s challenge of limited fish stocks and strict quotas, compelling them to shift their priorities from volume to value of production. Through this project, parts that were earlier considered waste are now converted into collagen, enzymes, chitosan, and energy, thereby increasing their value 375 times in value-added products. Although this project came into existence due to a state of necessity, the advantage in the hands of India lay in the abundance of resources, such as the coastline, diversity of species, and its institutional capacity – they don’t have to start from a state of nowhere. Previously mentioned institutions such as ICAR-CMFRI (Central Marine Fisheries Research Institute), CIFT (central Institute of Fisheries Technology) and CIBA (Central Institute of Brackishwater Aquaculture), have begun the development of technologies which extract fish oil, protein hydrolysates and chitin, allowing them to successfully develop omega 3 and marine collagen rich nutraceutical products in upcoming formats. Alongside this, Kasimedu has started witnessing community-initiated experiments for composting fish waste, reflecting the desire of the community to live in a disease and risk-free surrounding. Odisha’s shrimp processing institutions have started extracting chitin from ‘waste’ shells as well. However, all these initiatives, although in place, are highly fragmented, underfunded, and closed off from large-scale implementation. Due to the lack of a unified framework to implement them in every state of the country, positive results are at a minimum. 

Need for Marine Clusters:

The need for the creation of a decentralised Marine Innovation Cluster across fish-intensive states such as Kerala, Tamil Nadu, Gujarat, Odisha, and Andhra Pradesh does not fall short of a prerequisite if these frameworks are to be successful. Not only do they bring together institutions, but they also further share the joint objective with fishers, fish enthusiasts, cooperatives, and policy implementers. An ideal model would include bio-processing units, packaging hubs, and laboratories, machineries which are common to academic research institutions and state-run centres. Moreover, taking into consideration the vast population impacted by the downside of leaving this discarding of waste untouched, such a framework allows for the youth to be a part of this key initiative to transform the blue circular economy, allowing for the growth of local economies as well.

Policy Readiness and Addressing the Gaps:

While considering whether the policy environment of India can handle the implementation of such a far-reaching integrated framework, the answer falls in the affirmative. PMMSY (Pradhan Mantri Matsya Sampada Yojana), a scheme of the Indian government to ensure the sustainable development of the fishery sector, with its rupee 20,050 crore investment, aligns with the suggestion put forward in this article. Parallelly, the Draft Blue Economic Policy, initiated in 2021 by the Ministry of Earth Sciences (page 11), too, advocates for the management of marine resources sustainably.  Despite the presence of these frameworks alongside others like the National Marine Fisheries Policy in 2017 and the National Policy on Resource Efficiency, the integrated and unified network spoken of previously is missing. For such an initiative to truly be activated, agencies such as FSSAI and BIS are required to collaborate to create product standards for marine value-added products such as fish collagen, peptides, etc. Once activated fluently in the domestic region, to facilitate and ease the process of export, a vital step would include support and clear communication with bodies such as MPEDA (Marine Products Export Development Authority) and FSSAI, which would be necessary to ensure export standards are met for marine by-products. 

The Economic Upside: High Value Output and Low Waste:

Proof of the loss caused to the Indian economy because of the fishery industries’ discarding tactics is further amplified by its quantifiable nature. The country’s current seafood export stands at an approximate value of rupees 57,586 crore in the year 2021-2022, which was largely based on low-margin frozen exports. Upon transitioning to high-value marine by-products such as those mentioned previously, India would significantly multiply their revenue, without increasing its volume, thereby aligning with its sustainability goals, and maximising its efficiency. Additionally, this shift would present the opportunity of branching the advantages of the aquaculture sector to auxiliary ones, such as agriculture and pharmaceuticals, which would yield benefits from such marine bioproducts. The fishery and aquaculture industry create livelihoods for approximately 3 crore fishers and fish farmers at the primary level, and several more individuals across different levels. This would further increase with the creation of new jobs across sectors such as logistics, packaging, and research and development.

Environmental and Sustainability Commitments:

Adopting a circular approach, such as the one suggested in this article, places the environmental rationale of the glocalization of Iceland’s model alongside its economic one. Currently, discarded waste from fish contributes only to the production of methane, pollution, and eutrophication of water bodies, which are issues that place at risk the lives of both marine and human. Taking a step forward toward this transition, by converting such waste into biodegradable products in niche sectors, while reducing the reliance on chemical input, would support cross-sectoral sustainability, thereby aligning itself with India’s climate commitments under SDGs 12 (Responsible Consumption), 13 (Climate Action), and 14 (Life Below Water). This transition further allows for the recovery of depleting fish stocks due to consistently high-volume catches, which would allow for the stabilisation of ecological and marine life balance, thereby further promoting better fish quality in a healthier environment.

Conclusion: Shift from Waste to Wealth

With India’s production alongside friendly country relations being on the rise, the potential of converting this project from one that is volume-based to value-based is entirely ripe. The implementation of Iceland’s project in the domestic setting not only offers a practical and technological solution but also a philosophical one, which proves that if any resource, even those regarded as waste globally, is placed in the hands of one who finds a purpose for it, it becomes useful. By moving forward with the institution of such a system, India would not only benefit from food security and income, but also from agriculture and long-required environmental restoration. Therefore, with the bridging of empty gaps such as the need for unified policy frameworks and clear lines of communication, the Indian economy holds in its hands the power of transforming itself into a blue economy, with the purpose of sustainability and circular growth.

Author Bio

Samaira Prakash is a B.B.A. LL.B. student at Jindal Global Law School and a columnist at CNES.

Image Source: https://www.bostonglobe.com/2024/02/01/magazine/lessons-from-icelands-silicon-valley-of-cod/