Pearl Farming In India.pdf

Information Sheet On Pearl Farming in India By Sakshi Paritosh, Manager (Research) STATE BANK INSTITUTE OF RURAL DEVELOPMENT, HYDERABAD  Introduction Pearl harv...

Information Sheet On Pearl Farming in India By Sakshi Paritosh, Manager (Research) STATE BANK INSTITUTE OF RURAL DEVELOPMENT, HYDERABAD  Introduction Pearl harvesting in India has a rich and ancient tradition, particularly concentrated in coastal regions. India is known for its unique varieties of pearls, which are formed in both freshwater and saltwater mollusks. The process involves careful cultivation and collection, often requiring skilled divers and specialized techniques to ensure quality and sustainability. Over the years, the industry has evolved, integrating modern practices while preserving traditional methods, making India a significant player in the global pearl market. This blend of heritage and innovation continues to contribute to the cultural and economic fabric of coastal communities. Pearl Farming Process Commercial pearl farming is a profitable business idea in 2024. As the cultured pearl industry is changing rapidly in India, the demand for cultured pearls is also increasing day by day. Moreover, developing cultured pearls completely depends on a surgical procedure called grafting. The process involves surgically implanting an artificial nucleus (shell bead) into the tissue of a pearl oyster farming in India. 1  Steps Collection of Pearl Oysters Preparation of Graft Tissue Preparation of Nucleus Insertion of Nucleus Rearing of Oysters Harvesting of Pearls Site Selection The first important step towards producing pearls is setting up a good farm site. Growth of Oysters, quality of the pearls, safety of the farm from theft or other threats all depends upon the site. Setup The Farm Pearl farms require very simple structures to set up for growth. There are three basic types of farm structures available: Tahitian longlines (so-called because they are the most common method used in Tahiti), Rafts, Underwater trestles. Managing The Farm Growing pearl oysters is not that different from growing any crop. Regular checks for any damage, missing lines, and floats to be carried out. Furthermore, farmer should clean the pearl oysters of the fouling organisms that grow on their shells. The important species producing good quality of pearl are Pinctada Vulgaris (schumachar), Pinctada marigaritifera (Linn), Pinctada chemnitzi (Philippi), Pinctada anamioides (Reeve) and Pinctada atropurpurea (Dunker). Most commonly found in India is Pinctada vulgaris Grafting The Pearl Oysters The perfect pearl oyster size for grafting is about 4.5-6 in (12-15 cm) in length. Harvesting When the nacre layer is 0.08-0.12 in (2-3 mm) thick the pearls can be harvested. After harvesting, pearls to be kept in a secure place. Wash pearls properly after harvesting. Finally, records of every grafting and harvesting to be maintained for pearl farming business to track the production. 2  Segmental Overview The pearl jewellery market is segmented into Aspects Details USD 42 billion Market Size By 2031 Growth Rate CAGR of 13.2% By Type Necklace Earrings Rings Others By Pearl Nature Cultured Natural By Distribution Channel Offline Channels Sub-Type Jewelry Stores Brand Stores Supermarkets Online Channels By Pearl Source Fresh Water Salt Water By Region North America (U.S., Canada, Mexico) Europe (UK, Germany, France, Italy, Spain, Netherlands, Rest of Europe) Asia-Pacific (China, Japan, India, South Korea, Australia, Rest of Asia-Pacific) LAMEA (Brazil, Argentina, Saudi Arabia, United Arab Emirates, South Africa, Rest of LAMEA) By Type Since ancient times, pearl necklaces have been utilized as fashion accessories and as signifiers of royalty and grandeur, and they continue to be so today. Brooches, bracelets, nose rings, and hairpieces are examples of other pearl jewellery. Both male and female customers buy and wear these jewellery items. By Pearl Nature Pearls can be classified as Natural Cultured Cultured pearls are made by implanting a nucleus or membrane extracted from a retired mollusk into another mollusk to simulate the entry of an irritant inside the mollusk. This method of pearl farming contributes to a consistent supply of pearls for various applications, particularly jewellery production. These are genuine pearls, but because they are more widely available, they are less expensive. 3 Natural pearls are formed when a particle enters a mollusk and initiates the pearl formation process. These pearls are extremely rare, and due to the scarcity of pearls, they are extremely valuable. Natural pearls are very rarely used in the production of pearl jewellery due to their extremely high price. By Pearl Source Pearls can be classified as Freshwater Pearls Saltwater Pearls Freshwater oysters are used to make freshwater pearls. These mollusks typically produce multiple pearls within them, helping to make freshwater pearls abundant during cultivation and more readily available naturally. Freshwater pearls are most often white, off-white, and cream in colour, with hints of pink, lavender, peach, and other hues. Saltwater pearls are produced by saltwater oysters. These oysters frequently yield only two to three pearls at a time, making their cultivation in large quantities difficult and extremely difficult to find them naturally. Saltwater pearls are typically white, but can also be silver, black, gold, green, and a variety of other colours. By Distribution Channel Jewelry Stores Online Retail Shopping jewellery stores, brand stores, and supermarkets are examples of offline sales channels. By analyzing consumer behavior and purchasing patterns, producers can improve the existing products and develop new ones. Because of shifting consumer preferences, supermarkets and jewellery stores have emerged as the primary channels of distribution for pearl jewellery. Online retail channels typically involve virtual retail locations that sell goods and services via websites. Online product purchases are becoming more popular as the internet expands globally. Because of the convenience of online purchases, 24-hour customer service, and the availability of a diverse range of product options, online stores have grown in popularity among consumers. By Region Because of the continued growth of the designer & fashionable jewellery market, North America, which is among the most developed regions in the world, has seen a significant increase in pearl jewellery demand. Large quantities of pearls are used in the European region to make jewellery, which is mainly utilized by the fashion market and additionally serves as a symbol of status and prestige. Pearl jewellery is extremely valuable in the Asia-Pacific region due to its association with royalty as well as its cultural and astrological significance. This region is also the world's largest producer of cultivated pearls. 4 The innovative design, colour of the pearls, and elaborate designs fashioned from precious metals are some of the main factors driving the sales of pearl jewellery in the LAMEA region. Investment Cost & Margins (Estimations) These are as follows: Cost of purchasing pearl oysters Equipment and supplies cost Shipping costs for equipment, supplies, and import taxes Farm structure and platform investment SCUBA gear expenses Utilities and labor charges Requirements Pearl Farming Project Area ½ to ¾ acres Cultured Technique for Pearl Farming Double Implantations Density for stocking 9,000-10,000 mussels Timeline for culture 15-18 months At the lower end, a single oyster is priced at Rs 20-30. And a single oyster pearl of 1 to 20 mm can cost between Rs 300-1500. The initial investment for pearl farming would be close to ₹20,000 to ₹25,000. With this much investment, farmer can earn an income of up to Rs 300,000. The return on investment would be 50-60% of the expenditure allocated initially. Particulars Rs. Site/Pond Set Up 40,000.00 Equipment for Site 65,000.00 Oyster cost 13,000.00 Pearl Nuclei Cost 1,10,000.00 Grafting Sets 25,000.00 Skilled Labor cost 60,000.00 Site/Pond Maintenance cost 35,000.00 Post Harvest & Processing Cost 20,000.00 Total 3,68,000.00 5  List of Training Institutes Training Centre Location Marathwada pearl culture (MOTI) and Aurangabad, Maharashtra Training centre Freshwater Pearl Farming Training Jaipur, Rajasthan Institute Wizard Pearl Farming Centre Haryana Swastik Pearls Farming and Training Uttar Pradesh Centre Pearl Farming Training (Krishi Vigyan Chandangaon, Madhya Pradesh Kendra) Pearl Farming Training & Research Alwar, Rajasthan Government Training Center ICAR-CIFA: conducts National Training on Freshwater Pearl Culture for Entrepreneurship Development The Indian government has been encouraging pearl fishing as part of its Blue Revolution, a plan to modernise the nation's fishing industry. Under the scheme the government pays for half the cost of setting up a pond for pearl fishing, and so far, the Department for Fisheries has given financial support to 232 pearl farming ponds. The Department of Fisheries under the Pradhan Mantri Matsya Sampada Yojana (PMMSY) envisages for promoting pearl culture in India as diversified aquaculture practice. As a part of the blue revolution scheme in the fisheries sector, the Central Government will provide subsidies to Indian fisheries. The subsidy amount will be 50% of the total cost of setting up a pond for pearl cultivation. The aim of this subsidy is to help farmers increase their income. For example: by investing Rs. 25000, the farmers will be able to earn an income of up to Rs. 3,00,000 6  Global Pearl Market The Global Pearl jewellery Market size is expected to reach $37 billion by 2030, rising at a market growth of 12.9% CAGR during the forecast period. In the year 2022, the market attained a volume of 29,394.1 thousand units, experiencing a growth of 11.3% (2019-2022). The cultured Pearl segment captured $12,872.1 million revenue in the market in 2022. The global pearl jewellery market was valued at $12.8 billion in 2021, and is projected to reach $42 billion by 2031, growing at a CAGR of 13.2% from 2022 to 2031 Indian Pearl Market Exports In 2022, India exported $3.79M in Pearls, making it the 19th largest exporter of Pearls in the world. At the same year, Pearls was the 982nd most exported product in India. The main destination of Pearls exports from India are: Bahrain ($1.13M), Hong Kong ($546k), United States ($545k), Kuwait ($412k), and Japan ($385k). 7 The fastest growing export markets for Pearls of India between 2021 and 2022 were Bahrain ($475k), United States ($427k), and Kuwait ($399k). Imports In 2022, India imported $35.1M in Pearls, becoming the 6th largest importer of Pearls in the world. At the same year, Pearls was the 663rd most imported product in India. India imports Pearls primarily from: China ($17.4M), Hong Kong ($11M), Japan ($3.72M), Switzerland ($1.68M), and Thailand ($722k). The fastest growing import markets in Pearls for India between 2021 and 2022 were China ($9.4M), Hong Kong ($2.66M), and Japan ($1.82M). Pearl export shipments from India stood at 261.5K, exported by 10,006 India Exporters to28,840 Buyers. India exports most of it's Pearl to United States, Austria and United Arab Emiratesand is the largest exporter of Pearl in the World. The top 3 exporters of Pearl are India with 261,548 shipments followed by China with 169,066 and Germany at the 3rd spot with 59,256 shipments. Exports of gems & Jewellery-pearls in India increased to 15.40 INR TML in February from 4.05 INR TML in January of 2024. Exports of gems & Jewellery-pearls in India averaged 1.84 INR TML from 2008 until 2024, reaching an all time high of 41.44 INR TML in September of 2013 and a record low of -0.20 INR TML in January of 2011 Opportunities Development of sustainable cultivation techniques – Advancements in pearl jewellery, including sustainable cultivation techniques, colour treatments, customization options, and incorporation of alternative materials will fuel the market’s growth. And the emergence of smart jewellery will also increase the demand and popularity for pearls. Sustainable cultivation practices address growing consumer concerns about environmental conservation and ethical sourcing, positioning pearl jewellery as a more socially responsible choice. 8  Innovations in colour treatments offer a broader spectrum of pearl colors and variations, appealing to consumers seeking unique and personalized jewellery pieces. Customization options cater to individual preferences, allowing customers to create designs tailored to their style and taste. Incorporating alternative materials into pearl jewellery designs adds a contemporary twist to traditional pieces, appealing to modern consumers looking for innovative and fashion-forward accessories. Such development in the market is anticipated to fuel the market's growth during the forecast period. Restraints Pearl jewelry is expensive – Certain pearls, like natural pearls, are exceptionally rare and prized for their unique beauty and historical significance, leading to higher prices. Additionally, the quality of pearls significantly influences their cost, with factors such as size, shape, colour, lustre, surface quality, and origin determining their overall value. Furthermore, the labour-intensive nature of pearl production contributes to the overall cost of pearl jewelry, as cultivating pearls requires meticulous care, expertise, and time. Maintenance and care are crucial for preserving the beauty and longevity of pearl jewelry. Proper storage is essential, as is Cleaning with a soft, damp cloth or mild soap and water solution to remove dirt and residues. These recommended maintenance steps can add to the costs of pearl jewelry ownership. They are also time-consuming and take effort. Therefore, the cost of pearl jewelry will hamper the market’s growth. Role of Institutional Finance in Supporting Pearl Farming in India Pearl Farming is capital-intensive nature and necessitates robust financial support, primarily from institutional sources like banks. Here’s an overview of the role of institutional finance, particularly banks, in supporting pearl farming businesses in India: 1. Capital Intensity and Financial Needs Pearl farming involves substantial upfront costs for infrastructure, equipment, and operational expenses. Access to affordable credit is crucial for entrepreneurs and farmers to establish and expand their pearl farming operations. 2. Role of Banks in Financing Pearl Farming Loans and Credit Facilities: Banks provide various financial products tailored to the needs of pearl farmers, including term loans for setting up pearl farms, working capital loans for day-to-day operations, and loans for purchasing equipment and seeds (oysters). Subsidized Schemes: Government initiatives and subsidies often channel through banks, reducing interest rates and offering repayment flexibility, thereby lowering the financial burden on pearl farmers. 9  Project Financing: Banks evaluate pearl farming projects based on their feasibility, growth potential, and environmental sustainability before extending project finance. This ensures that investments are directed towards viable and scalable ventures. 3. Risk Mitigation and Insurance Insurance Products: Banks facilitate insurance coverage against risks such as natural calamities, diseases affecting pearl oysters, and market fluctuations. This minimizes financial losses for farmers and instills confidence in investors. 4. Technical Assistance and Capacity Building Training Programs: Banks collaborate with agricultural and aquaculture institutes to offer training and capacity-building programs for pearl farmers. These programs enhance technical know-how in pearl cultivation techniques, farm management, and market dynamics. 5. Compliance and Regulatory Support Compliance Assistance: Banks guide pearl farmers through regulatory requirements and certifications necessary for export and domestic trade, thereby ensuring adherence to quality standards and boosting market competitiveness. 6. Promotion of Sustainable Practices Environmentally Sustainable Finance: Banks promote eco-friendly practices in pearl farming by offering incentives for adopting sustainable technologies and practices that minimize environmental impact. Conclusion The outlook for pearl farming in India is promising, driven by increasing global demand for high-quality pearls and a growing interest in sustainable aquaculture practices. With advancements in technology and cultivation techniques, Indian pearl farmers are enhancing production efficiency and quality. Additionally, government initiatives supporting marine aquaculture and environmental conservation are further bolstering the industry. As awareness of the ecological benefits of pearl farming grows, along with the potential for job creation and economic development in coastal communities, India is poised to strengthen its position in the global pearl market. Overall, the future of pearl farming in India appears bright, with opportunities for growth and innovation. Source https://www.marketresearchfuture.com/reports/pearl-jewellery-market-20290 https://www.volza.com/p/pearl/export/export-from-india/ https://oec.world/en/profile/bilateral-product/pearls/reporter/ind https://tradingeconomics.com/india/exports-of-gems-jewellery-pearls https://www.alliedmarketresearch.com/pearl-jewelry-market-A11747 https://www.kbvresearch.com/pearl- https://www.marketresearchfuture.com/reports/pearl-jewellery-market-20290 https://www.tractorjunction.com/blog/pearl-farming-in-india/ 10