MaritimeNews India : In a sweeping attempt to modernize India’s maritime sector, Union Minister for Ports, Shipping, and Waterways, Sarbananda Sonowal, has unveiled the One Nation-One Port Process (ONOP) — a bold initiative aimed at standardizing processes across all major ports. The government touts ONOP as a transformative step toward efficiency, global competitiveness, and reduced costs, but underneath the promises lies a growing concern about its impact on India’s coastal economy, particularly on small fishers, farmers, and traditional port-dependent communities.
The Maritime Sector’s Growing Importance — By the Numbers
- India’s ports handle more than 1.4 billion tonnes of cargo annually, contributing approximately 3% to the nation’s GDP.
- According to the Ministry of Ports, Shipping & Waterways, India aims to increase its port capacity to 2,500 million tonnes per annum (MTPA) by 2030 under the Maritime Vision 2030.
- Major ports account for 54% of cargo traffic, while non-major ports — many of which serve coastal communities — handle 46%.
- The fisheries sector employs over 14 million people directly and indirectly along India’s 7,500 km coastline, contributing nearly 1% to GDP and exports worth ₹60,000 crore annually.
- Agriculture accounts for ~12% of India’s total exports, much of it passing through coastal and minor ports near production clusters in Kerala, Andhra Pradesh, Gujarat, and Odisha.
Who Wins with ONOP?
Major Ports & Private Terminal Operators
- Standardization could reduce clearance times by 30%, according to a 2024 pilot study conducted at JNPT and Kandla.
- Improved processes are expected to reduce logistics costs from the current 14% of GDP to around 8%, aligning with global benchmarks.
Large Exporters & Corporates
- Streamlined documentation and compliance could cut export costs by up to ₹5 lakh per shipment for large exporters, particularly in automobiles, pharmaceuticals, and textiles, according to FIEO (Federation of Indian Export Organisations).
Tech Companies & Logistics Startups
- Digital trade platforms for ports are projected to grow into a ₹10,000 crore industry by 2030, driven by demand for e-documentation, AI-driven cargo tracking, and blockchain-based smart contracts.
Who Loses? Fishers, Farmers, and Coastal Traders at Risk
Fishing Communities
- A study by CMFRI (Central Marine Fisheries Research Institute) found that 85% of small-scale fishers rely on non-major ports and traditional landing sites, which often lack formal documentation processes.
- Fish export consignments from traditional fishers already face 20-30% higher rejection rates due to inadequate compliance documentation — a problem likely to worsen under ONOP’s stricter process regime.
- Industrial fishing companies, which already control over 60% of marine fish exports, could further consolidate market share, leaving small-scale fishers marginalized.
Coastal Farmers & Agri Exporters
- Nearly 60% of India’s agri exports by volume pass through ports, with rice, spices, fruits, and seafood being dominant products.
- ONOP’s one-size-fits-all approach could increase compliance costs for small farmer cooperatives by 25-40%, according to a 2024 survey by Agri-Export Promotion Council.
- Non-major ports in Kerala, Andhra Pradesh, and Tamil Nadu handle over ₹35,000 crore worth of agri exports annually, much of it from small producers who depend on flexible, locally adapted port processes.
Small & Medium Coastal Enterprises
- Small-scale exporters currently move cargo worth approximately ₹25,000 crore annually through minor ports, particularly in handicrafts, textiles, and marine products.
- Rising documentation costs under ONOP could push out 40-50% of these smaller exporters, making them reliant on large corporate aggregators, reducing their margins and control over pricing.
A Rising Tide or a Coastal Crisis?
While ONOP’s objectives — faster clearances, lower costs, improved competitiveness — are commendable, the cost of these reforms may disproportionately fall on the most vulnerable coastal stakeholders.
Fisheries and Farming: The Collateral Damage
Fishing Communities
- According to National Fishworkers’ Forum, 60% of traditional fishing harbours are already under threat from port expansion projects.
- ONOP’s emphasis on large ports sidelines decentralized, community-managed landing sites, where informal networks are crucial for survival.
- Port access fees at major ports could rise by 25-30% post-ONOP, creating new barriers for small-scale fishers who lack capital buffers.
Coastal Farmers
- In Andhra Pradesh’s Godavari belt, farmers’ cooperatives exporting rice and spices already report documentation costs eating up 15% of their export value.
- With ONOP mandating centralized digital platforms, non-digitally literate farmers and traders will face steep learning curves and dependency on intermediaries.
- This shift could reduce farmgate prices by ₹2-4 per kg for key crops, particularly for perishable goods like bananas, mangoes, and seafood.
What Must Be Done to Balance ONOP?
If ONOP is to succeed without triggering displacement and unrest in coastal communities, targeted safeguards and localized adaptations are essential.
Flexible Process Tracks for Traditional and Small-Scale Users
- A simplified compliance track for coastal cargo, fish landings, and small-scale farm exports.
- Digital documentation should be optional for specific categories, particularly in non-major ports.
Mandatory Coastal Livelihood Impact Assessments
- Every port transitioning to ONOP must conduct annual livelihood impact studies.
- These assessments should directly influence tariff-setting, zoning, and process design.
₹5,000 Crore Coastal Economy Transition Fund
- Direct support for fishers’ cooperatives, farmer export groups, and micro-enterprise clusters.
- Training programs on digital trade documentation, blockchain tracking, and global trade requirements.
Livelihood Protection Zones
- Mandatory reservation of space at every port for traditional fishers and artisanal traders.
- Protect informal fish landing sites and artisanal processing zones from conversion into commercial container yards.
Representation in Port Governance
- Fishers’ unions, farmers’ bodies, and small trader associations must have statutory representation on Port Advisory Boards, ensuring that policy decisions are vetted through a livelihood lens.
The Real Test: Growth with Justice
Minister Sonowal’s ambition to make India a global maritime powerhouse will ultimately be judged not by how fast cargo clears Indian ports, but by whether India’s coastal communities still see ports as gateways to prosperity — not barriers to survival.
The future of India’s Blue Economy hinges on striking a delicate balance between efficiency and equity, between global ambition and local protection. A truly ‘Viksit Bharat’ (Developed India) cannot emerge unless the rights of fishers, farmers, and small traders are anchored firmly within the port modernization process.
MaritimeNews.in Verdict
ONOP is a bold and necessary reform, but without strong safeguards for the vulnerable, it risks becoming a symbol of exclusion rather than efficiency. The time for course correction is now.
MaritimeNews.in – Amplifying Coastal Voices, Protecting Blue Economies
