Proposal for a Right-Based Seaweed Cultivation System in India

Authors

Executive Summary

India has progressed from treating seaweed as a niche livelihood activity to recognising it as part of coastal aquaculture. India’s BioE3 policy recognises seaweed as an important activity of the bioeconomy, with the Coastal Aquaculture Authority (CAA) legalising the cultivation of seaweed in India’s territorial waters. But the sector still lacks the one instrument that would unlock farmer finance and private investment at scale: a secure, exclusive, bankable lease over a defined marine area. This advisory recommends that India shift from a registration-only recognition of seaweed farming to a lease-based tenure framework for seaweed cultivation sites, administered through the CAA in collaboration with state governments and accounting for strong environmental safeguards.

Devleena Bhattacharjee is the founder of ClimaCrew. Shambhavi Naik is the chairperson of the Advanced Biology programme at the Takshashila Institution. Anupam Manur is a professor of Economics at the Takshashila Institution.

Acknowledgements The authors are thankful to Anisree Suresh for her help in the document preparation. The authors would also like to thank Nelson Vadassery, Abhiram Seth, Tanmaye Seth, Kapildev Bahl, and Swapnil Tandel for their thoughtful comments on the recommendations advanced in this paper.

Introduction

Seaweed is no longer only a coastal livelihood issue. It sits at the intersection of industrial biotechnology, climate strategy, coastal development, and import substitution. Global seaweed cultivation has expanded dramatically over the past two decades, with production increasing from roughly 11 million tonnes in 2000 to 35.2 million tonnes in 2021.1 Over the same period, the market value of the seaweed industry grew from around USD 5 billion to USD 17 billion. Forecasts suggest the industry could reach USD 97 billion by 2027.2 Seaweed-based value chains now supply food, hydrocolloids, pharmaceuticals, cosmetics, feed, and agricultural biostimulants (Figure 1). Hydrocolloids such as carrageenan, agar, and alginate are particularly important because they are basic inputs into food processing, pharmaceuticals, and industrial applications.

Breakdown of seaweed applications (based on World Bank data, details in Appendix I).

The primary focus currently in India is cultivating Kappaphycus alvarezii, a red algae species that produces carrageenan, a commercially important polysaccharide and bio-stimulant.3 For India, the case for investment in seaweed rests on four grounds.

First, jobs and livelihoods. Commercial farming of Kappaphycus alvarezii has already shown that seaweed can generate substantial employment and cash income in coastal communities. The government estimates utilising 24,707 hectares for seaweed cultivation. Under optimal conditions, the net revenue from one hectare (400 rafts) in dry weight might reach up to Rs. 13,28,000 per year. A family of two can handle around 45 rafts, providing income opportunities.4 If the complete potential estimated by the government is realised, it can directly result in the creation of about 4.4 lakh jobs using the raft method. The actual numbers will differ from state to state: in Tamil Nadu, for example, since its shallow waters near Mandappam allow most of the cultivation to be done by walking into water, there is no need for boats or anchors, and the number of rafts that can be managed per person is high.

The employment opportunities extend beyond cultivation and are also generated at downstream activities in the supply chain, such as processing, packaging and shipping. Even a conservative multiplier of 0.3 to 0.5 would imply that an additional 1.3 to 2.2 lakh jobs would be generated. Furthermore, several case studies in the region have demonstrated that the seaweed sector may drive women’s empowerment in ocean communities.5

Second, industrial and import resilience. India’s seaweed value chain can reduce dependence on imported hydrocolloids and raw materials for food, cosmetics, agriculture and biotech applications. According to trade data, India imported about USD 2.9 million worth of seaweed in 2020, while seaweed-related exports were only about USD 773,000.6 Trade data from 2018 showed an import of approximately 252,000 kg (approximately 252 tonnes) of seaweed.7

Third, revenue and rural enterprise. NITI Aayog’s seaweed strategy estimates that bringing 24,707 hectares under cultivation could enable production of roughly 7.51 lakh tonnes of Kappaphycus alvarezii or 28.1 lakh tonnes of Gracilaria edulis, with a revenue potential of more than Rs 50 billion for either species.8

Fourth, climate and sustainability. Seaweed farming does not require arable land or freshwater, can complement coastal livelihoods, and has carbon uptake potential. Mariculture seaweeds’ estimated carbon sequestration rates amount to 57.64 tonnes CO2 per hectare per year, while pond-cultured seaweeds sequester 12.38 tonnes CO2 per hectare per year. Kappaphycus alvarezii has been estimated to sequester 19 kg of CO2 per day per tonne of dry weight, or equivalently 760 kg of CO2 per day per tonne of dry weight per hectare.9 While claims around carbon removal should be made cautiously, Indian technical literature does indicate significant CO2 sequestration potential in cultivated seaweed systems, including Kappaphycus alvarezii.

India’s Seaweed Cultivation and Governance Landscape

The Department of Fisheries has made seaweed a priority activity under the Pradhan Mantri Matsya Sampada Yojana, approved about Rs 197 crore worth of seaweed-related projects during 2020–25, supported a Multipurpose Seaweed Park in Tamil Nadu with an approved investment of Rs 127 crore, designated Lakshadweep as a Seaweed Cluster, and notified the Mandapam Regional Centre of ICAR-CMFRI as a Centre of Excellence.10,11 The government has also issued germplasm import guidelines and set up inter-ministerial and technical coordination mechanisms. In response to these incentives, seaweed production has increased from 18,890 tonnes in 2015 to 74,083 tonnes in 2024.12

Research institutions, including ICAR - Central Marine Fisheries Research Institute (CMFRI) and CSIR - Central Salt and Marine Chemicals Research Institute (CSMCRI) have identified 384 sites across the coastline covering 24,707 hectares as suitable for seaweed cultivation (Appendix II).13 Gujarat, Tamil Nadu, Maharashtra, Odisha, Andhra Pradesh and island territories together provide a broad national base rather than a single-state opportunity.

Map of identified seaweed cultivation sites across India’s coastline.

Yet India’s seaweed economy remains well below its potential. Recent policy reforms have eased restrictions on the import and cultivation of seaweed and provided financial support through government grants and targeted programmes. While these measures have helped catalyse pilot projects and early adoption, they are insufficient to drive large-scale expansion of the sector. For seaweed cultivation to grow meaningfully, the industry will need to attract private investment. This, in turn, requires the creation of bankable and secure rights over cultivation areas that farmers and enterprises can use to raise capital, invest in infrastructure, and scale production.

The next section argues that the absence of a clear legal framework that makes seaweed cultivation a fungible and financeable asset is likely preventing its wider integration into coastal economic activities.

Conclusion

India has already recognised seaweed as an important contributor to the bioeconomy. But the full realisation of this potential will depend on providing incentives for seaweed cultivation that go beyond grants and legalisation. India already has a downstream industry that utilises seaweed, providing a domestic market for seaweed, in addition to the available export opportunity. A leasing mechanism that can be used to raise capital and investor/farmer confidence in investing in seaweed cultivation would catalyse this sector’s growth.

Appendix I

Category Global Market Size Basis
Food & food ingredients ~USD 12.4–13.6 billion Derived as roughly 80 per cent of the USD 15.5–17 billion global seaweed market, based on the FAO/World Bank use split of 40 per cent direct human consumption + 40 per cent processed food use.
Hydrocolloids (carrageenan, alginate, agar) ~USD 1.16 billion Historical consolidated benchmark from the World Bank table for hydrocolloids: agar USD 191 million + alginate USD 339 million + carrageenan USD 626 million. This is older and conservative, but still one of the few validated consolidated figures.
Agriculture / biostimulants ~USD 1.88 billion World Bank potential market size for seaweed biostimulants. The same report notes seaweed extracts in the broader biostimulants market were about USD 935 million in 2021.
Animal feed additives & pet food ~USD 2.20 billion Combined World Bank potential market size of animal feed additives USD 1.08 billion + pet food USD 1.12 billion.
Nutraceuticals & alternative proteins ~USD 4.40 billion Combined World Bank potential market size of nutraceuticals USD 3.95 billion + alternative proteins USD 0.45 billion.
Bioplastics, fabrics & other advanced biomaterials ~USD 2.99 billion Combined World Bank potential market size of bioplastics USD 0.73 billion + fabrics USD 0.86 billion + construction materials USD 1.40 billion.

Appendix II

State No. of Sites (ICAR-CMFRI) No. of Sites (CSIR-CSMCRI) Potential Area (hectares)
Andhra Pradesh 37 3 1355
Diu 2 404.47
Goa 4 3 62.84
Gujarat 13 7 10704.13
Karnataka 11 3 1280.05
Kerala 7 1 79.67
Lakshadweep 11 212.80
Maharashtra 10 3 2871.31
Odisha 14 1483.76
Puducherry 23 382.53
Tamil Nadu 196 24 5332.24
West Bengal 5 448.84
Andaman and Nicobar 7 16.5

Footnotes

  1. United Nations Conference on Trade and Development, “An Ocean of Opportunities: The Potential of Seaweed to Advance Food, Environmental and Gender Dimensions of the SDGs,” UNCTAD, 2024. Link↩︎

  2. Global Market Insights, “Commercial Seaweed Market Size, Share, and Growth Forecast,” GMI, 2023. Link↩︎

  3. Khanjan Trivedi, Vijay Anand Gopalakrishnan, Vaghela Pradipkumar, Alan Critchley, Pushp Shukla, and Arup Ghosh, “A Review of the Current Status of Kappaphycus alvarezii Based Biostimulants in Sustainable Agriculture,” Journal of Applied Phycology 35 (2023). Link↩︎

  4. Vaibhav Mantri, Karuppanan Eswaran, Shanmugam Munisamy, Ganesan Meenakshisundaram, Veeragurunathan Veeraprakasam, Sangaiya Thiruppathi, CRK Reddy, and Abhiram Seth, “An Appraisal on Commercial Farming of Kappaphycus alvarezii in India: Success in Diversification of Livelihood and Prospects,” Journal of Applied Phycology 29 (2017). Link↩︎

  5. F. E. Msuya and A. Q. Hurtado, “The Role of Women in Seaweed Aquaculture in the Western Indian Ocean and South-East Asia,” European Journal of Phycology 52, no. 4 (2017): 482–494. Link↩︎

  6. United Nations Conference on Trade and Development, “An Ocean of Opportunities: The Potential of Seaweed to Advance Food, Environmental and Gender Dimensions of the SDGs,” UNCTAD, 2024. Link↩︎

  7. CEIC Data, “India Imports Volume: HS 12122110: Seaweeds,” CEIC, accessed March 2026. Link↩︎

  8. NITI Aayog, “Strategy for the Development of Seaweed Value Chain Fostering Diversified Livelihoods,” NITI Aayog, 2024. Link↩︎

  9. B. Johnson, G. Tamilmani, D. Divu, Suresh Kumar Mojjada, Sekar Megarajan, Shubhadeep Ghosh, Mohammed Koya, M. Muktha, Boby Ignatius, and A. Gopalakrishnan, Good Management Practices in Seaweed Farming, CMFRI Special Publication No. 148 (Kochi: ICAR-Central Marine Fisheries Research Institute, 2023).↩︎

  10. Press Information Bureau, “Pradhan Mantri Matsya Sampada Yojana: Seaweed Development,” Ministry of Fisheries, Animal Husbandry and Dairying, Government of India, 2026. Link↩︎

  11. Press Information Bureau, “Seaweed Cluster in Lakshadweep and Centre of Excellence at ICAR-CMFRI,” Ministry of Fisheries, Animal Husbandry and Dairying, Government of India. Link↩︎

  12. Press Information Bureau, “Seaweed Production Statistics 2024,” Ministry of Fisheries, Animal Husbandry and Dairying, Government of India, 2024. Link↩︎

  13. Press Information Bureau, “Seaweed Cultivation Sites Identified by ICAR-CMFRI and CSIR-CSMCRI,” Ministry of Fisheries, Animal Husbandry and Dairying, Government of India, 2026. Link↩︎

  14. Korea Legislation Research Institute, “Aquaculture Industry Development Act (South Korea),” KLRI, accessed March 2026. Link↩︎

  15. Republic of the Philippines, “Republic Act No. 8550: The Philippine Fisheries Code of 1998,” Official Gazette of the Philippines, 1998. Link↩︎

  16. Crown Estate Scotland, “Aquaculture Leasing: Seabed Tenure in Scotland,” Crown Estate Scotland, accessed March 2026. Link↩︎

  17. Arif Satria et al., “Property Rights and Conflicts in Seaweed Farming in Indonesia,” Ocean & Coastal Management (2018). Link↩︎

  18. Veera Gurunathan, Vaibhav Mantri, Karuppanan Eswaran, and Malar J. M., “Influence of Commercial Farming of Kappaphycus alvarezii (Rhodophyta) on Native Seaweeds of Gulf of Mannar, India: Evidence for Policy and Management Recommendation,” Journal of Coastal Conservation 25 (2021): 1–12. Link↩︎

  19. KapilDev Bhal, “Coastal Communities: Sustainable Livelihood Opportunities,” Marine Engineers Review (India) 18, no. 5 (2024): 31–36.↩︎