Odisha: War Heavily Hits State’s Major Economy Driver as Seafood Exports Slump

It is not only the plight of millions of LPG consumers lining up on the streets as the supply of the cooking gas remains virtually suspended due to the war in West Asia, but Odisha is also facing big time stagnation as seafood exports, the economy’s lifeline, take a hit of over 30% because of lack of shipping lanes.

Odisha, with a coastline of 480 km along the Bay of Bengal, supporting six coastal districts, ranks as the fourth biggest seafood hub in the country. 

Undoubtedly, the state is one among the few coastal states that depend on seafood exports as the principal economic driver. As a result, it is now facing a revenue depression because of the war in West Asia and restrictions in the Straits of Hormuz by Iran. 

Major Blue Economy  

Odisha is consistently ranked as the fourth-largest fish-producing state in India. As a major player in the country’s blue economy, the state recorded total fish production of 11.24 lakh tonnes in 2023-24, driven by significant growth in both inland and marine aquaculture, accounting for over 6% of India's total fish production.

Odisha enjoys an enviable position with a variety of seafood species for their flavour and versatility, taking together both marine and brackish water fish, which constitute a significant portion (about 20% to 34%) of the total fish production.

In 2020-2021, according to state government data, exports increased nine-fold in the past 20 years, reaching over Rs 3,100 crore among which the key seafood items include shrimp, prawns, Tuna fish, crabs, Salmon and Hilsa.

The Israel-US-Iran conflict has significantly impacted Odisha by creating a 30% slump in seafood exports along Gulf routes and driving up prices for essential commodities, including a Rs. 200–Rs.500 surge in LPG cylinder costs. Furthermore, many Odia workers are stranded in the region due to cancelled flights, causing panic among their families.

With 92,169 tonnes of seafood production annually, Odisha suffering a sudden slump in exports due to shipping disruption has compelled local suppliers to go in for diversification strategies to reduce their reliance on the impacted markets.

Chilika Lake

Chilika Lake, Asia’s largest brackish water lagoon in Odisha, is a major seafood hub, producing over 19,000 tonnes annually as of 2024-25, comprising fish, shrimp, and crabs. The lagoon, which supports over 30,000 fishermen families, saw a production of 13,344 tonnes of fish, 5,970 tonnes of shrimp, and 439 tonnes of crabs in 2024-25.

But, since the war broke out in February-end, everything related to seafood has been terribly impacted, affecting the livelihood of over two lakh fishermen community.

The writer is a freelancer based in Odisha with over 40 years’ experience in the profession.