India’s Seaweed Sector Estimated ₹200 Cr in 2022, Could Surge to ₹3,277 Cr Within the Next 10 Years: Report

• Seaweed farming could yield up to ₹13.28 lakh per hectare annually for farmers.
• Urgent development of seed banks, processing units, and streamlined policies is recommended to support industry growth.
• Industry experts highlight the vast potential of regions like Lakshadweep for high seaweed production efficiency.
• Initiatives like the Pradhan Mantri Matsya Sampada Yojana are in place to promote seaweed farming, aiding over 4,00,000 families.

Primus Partners has released a comprehensive report titled “Seaweed Farming can touch a million lives”, highlighting the immense potential of seaweed farming to transform India’s coastal economy. The report projects that India’s seaweed sector, currently valued at ₹200 crore, could surge to ₹3,277 crore within the next decade, positively impacting 1.6 million lives and creating sustainable livelihoods for 4,00,000 families.

India’s vast coastline, spanning states like Maharashtra, Tamil Nadu, Gujarat, and regions such as Lakshadweep and the Andaman & Nicobar Islands, offers untapped opportunities for large-scale seaweed farming. With rising demand across industries such as food, pharmaceuticals, cosmetics, and agriculture, seaweed farming is poised to become a key driver of India’s blue economy.

However, despite its potential, India currently contributes less than 1% to global seaweed production. The report identifies key challenges, including inconsistent seed quality, logistical bottlenecks, and limited market linkages, which hinder the sector’s growth.

Key Insights from the Report:

Economic Impact: Seaweed farming could generate significant revenue, with farmers earning up to ₹13.28 lakh per hectare annually from high-value species like Kappaphycus alvarezii.

Challenges for Buyers: Buyers face issues such as inconsistent supply, poor logistics, and lack of contract farming policies, leading to a reliance on imported seaweed.

Farmer Challenges: Coastal farmers struggle with low awareness of farming techniques, environmental risks, and weak market linkages, limiting their adoption of seaweed farming.

Government Initiatives

The Indian government has taken several steps to promote seaweed farming, including budget allocations under the Pradhan Mantri Matsya Sampada Yojana (PMMSY) and initiatives to provide Kisan Credit Cards (KCC) and Mudra Loans to farmers. However, the report emphasizes the need for a concrete roadmap focusing on:

• Infrastructure Development: Establishing onshore and offshore seed banks, micropropagation facilities, and processing units near cultivation hubs.
• Policy Support: Streamlining land leasing and contract farming policies to ensure stable incomes for farmers and reliable supply chains for buyers.
• Market Access: Encouraging private investments through fiscal incentives and Public-Private Partnerships (PPPs) to strengthen the seaweed value chain.

Dr. Stefan Kraan, Chief Scientific Officer of TSC-Purple Pvt. Ltd., Tuticorin, Tamil Nadu, highlighted the extraordinary potential of Lakshadweep, where seaweed production per unit of seeds has reached up to 15X in some regions.

Mr. Abhiram Seth, Managing Director of Aquaagri Processing Pvt. Ltd., emphasized the need to resolve concerns around Kappaphycus, stating, “If the perception issue of Kappaphycus can be solved, seaweed farming can provide livelihood to a million lives.”

Ramakrishnan M, MD, Primus Partners, Author of this report, commented, "Seaweed farming represents a tidal shift in sustainable agriculture, promising not only to bolster India's blue economy but to fundamentally transform coastal livelihoods. By embracing this untapped resource, we are paving a path towards economic resilience and environmental stewardship for millions.”

The report calls for collaborative efforts between the government, private sector, and coastal communities to unlock the full potential of seaweed farming. By addressing challenges and implementing the recommended strategies, India can position itself as a global leader in the seaweed industry, driving sustainable economic growth and empowering coastal communities.

About Primus Partners Pvt Ltd

Primus Partners Pvt Ltd is a leading management consulting firm based in New Delhi, with offices across India and a growing presence in the UAE. Specializing in sectors such as technology, public policy, and impact advisory, Primus Partners provides innovative solutions to drive sustainable growth for both public and private sector clients. With its expertise in Idea Realisation and sectoral leadership, the firm is at the forefront of consulting in India’s rapidly evolving economy.