India’s seaweed farming industry, currently valued at Rs. 200 crore (US$ 23.02 million), is on track to expand 16 times over the next decade, reaching an estimated Rs. 3,277 crore (US$ 377.19 million). This massive growth potential highlights seaweed cultivation as a key driver of India's blue economy, providing new income opportunities for coastal communities while supporting industries such as food, pharmaceuticals, cosmetics, biomaterials, and agriculture.

According to a report by Primus Partners, the number of families engaged in seaweed farming could rise from 40,000 to 4,00,000, potentially benefiting 1.6 million people. With improved policies and financial assistance, seaweed farming could become one of the most lucrative agribusiness opportunities in India, with farmers earning up to Rs. 13.28 lakh (US$ 15,286) per hectare annually.

Lakshadweep: A Key Seaweed Farming Hub

The Lakshadweep Islands are emerging as a major hub for high-yield seaweed cultivation, with productivity reaching up to 15 times higher in some areas compared to the usual fivefold increase in other coastal regions. The favourable marine conditions, government support, and growing market demand have positioned Lakshadweep as an ideal location for large-scale seaweed farming.

Rising Industry Demand and Corporate Involvement

The rapid expansion of India’s seaweed industry is being driven by demand from major companies such as Britannia, Nestlé, Amul, Cipla, Zydus Cadila, Hindustan Unilever, Tata Chemicals, and BASF India, which are increasingly incorporating seaweed into their supply chains for food products, medicines, and sustainable biomaterials.

Despite this booming demand, the industry faces several challenges, including:

• Inconsistent quality of seaweed due to lack of standardisation and quality control.
• Limited connectivity and infrastructure in key coastal and island regions.
• Regulatory and legal uncertainties that hinder large-scale commercial investment.
• Environmental concerns related to large-scale marine cultivation.

Government Support and Policy Initiatives

To address these challenges, the Indian government has allocated Rs. 640 crore (US$ 73.66 million) under the Pradhan Mantri Matsya Sampada Yojana (PMMSY) to boost seaweed farming, infrastructure, and market expansion. Additionally, farmers can access financial aid through Kisan Credit Cards (KCC) and Mudra Loans, easing entry barriers and improving profitability.

The National Fisheries Development Board (NFDB) and other government agencies are supporting initiatives such as:

• Skill development programs for seaweed farmers.
• Establishment of seed banks to ensure a steady supply of high-quality seaweed strains.
• Expansion of infrastructure to improve logistics and market access.

Need for Private Investment and Public-Private Partnerships (PPPs)

While government schemes provide essential financial and infrastructural support, the seaweed industry requires structured policies, private investment, and Public-Private Partnerships (PPPs) to unlock its full potential. According to Primus Partners, these steps will be crucial in:

• Enhancing market development and quality control standards.
• Boosting India’s seaweed export potential to international markets.
• Ensuring long-term sustainability while protecting marine ecosystems.

Seaweed Farming and India’s Blue Economy

The success of India’s seaweed industry aligns with the country’s broader blue economy strategy, which focuses on sustainable marine resource management and coastal livelihood enhancement. With global demand for seaweed-based food, pharmaceuticals, and biomaterials growing rapidly, India is well-positioned to become a major player in the global seaweed market.

The Road Ahead

The next 10 years will be crucial for India’s seaweed farming industry. Strong policy support, increased private sector participation, and government-backed financial schemes will be essential to unlocking the sector’s full potential. If these measures are effectively implemented, India could become a global leader in seaweed production, significantly contributing to its marine economy, employment generation, and sustainable agriculture practices.

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