Seafood Exports From India Fell By 13 Pc

Kochi: Seafood exports from India fell by 13 per cent to Rs 6,266 crore (Rs 7,224 crore) during April-January 2007-08. The prime trigger for this fall was a 13 per cent fall in value of shrimp exports. Shrimp continue to be the top export item in terms of value, fetching 54 per cent of the total export revenue.

The total quantity of export during the period fell by 18 per cent to 4,35,873 tonnes. The fall in quantity was moderately reflected in the dollar earnings which registered a marginal fall of two per cent to $ 1556 million. The major items of export were frozen shrimp which was followed by frozen fish at 17 per cent, frozen cuttle fish at 10 per cent, frozen squid at 5 per cent, dried items at 3 per cent and live and chilled items at one per cent. Other items constituted the remaining nine per cent of exports.

While there was a nominal fall of two per cent in the quantity of shrimp export, the value realized plunged by 13 per cent to Rs 3386 crore. However the dollar realization fell by a modest two per cent to $ 840 million. Frozen fish exports registered a significant fall 26 per cent in quantity and 20 per cent in rupee realization.

The European Union continued to be the biggest export destination for Indian seafood products accounting for 27 per cent of the total volume and 35 per cent in value realisation. However there was a marginal dip in both quantity and value realised from this export destination over the corresponding period of the earlier. Japan was second largest export destination with 12 per cent of the total quantity and accounting for 16 per cent of the rupee value realisation. This was closely followed by USA with 7 per cent of the total quantity and 14 per cent of the value realisation. China and South East Asia have emerged as the other two major export destinations of Indian seafood exports.

Kochi continues to be biggest port for export of seafood accounting for 18 per cent of the total value exported. This was followed by Chennai with 16 per cent, JNP Mumbai with 15 per cent and Vizag with 14 per cent. However, in quantity of seafood export Pipavav was the top port accounting for 27 per cent followed by JNP with 19 per cent, Kochi with 18 per cent and Chennai with eight per cent.

Measures Sought To Revive Seafood Sector

Kochi: The Seafood Exporters Association of India (SEAI) has suggested an array of measures to revive the seafood industry which has been going through one of its most critical periods in recent history. Run-up to Budget 2008-09

The revival measures include providing alternate sources of livelihood for fishermen through provision of land and finance for cage culture, encouraging culture of vanammae shrimp along with black tiger, increase in DEPB rates by an additional five per cent, removal of service tax, support on freight costs and additional supports under the Foreign Trade Policy.

Reasons for worry

The association pointed out that the fisheries sector is now faced with the biggest crisis of the last 50 years, caused by the strengthening of the rupee by more than 15 per cent, increase in fuel price by more than 80 per cent, anti-dumping duty levied by the US Government and the oversupply of shrimps of the vanammae variety by countries such as Thailand, Vietnam, Indonesia and others at prices which were 25-30 per cent lower than black tiger shrimp cultured in India.

This crisis has implications for over two million fishermen and farmers on their livelihood and could potentially lay-off of more than 50,000 workers in the processing establishments.

Exports have dropped by 20 per cent in rupee value and could drop by 50 per cent of the $1 billion export trade in the coming year, leading to bankruptcies of many fishermen, farmers and exporters, the SEAI warned.

The travails and suggestions for revival of the fisheries sector were submitted in a memorandum to Sonia Gandhi, Chairperson of the UPA, when she visited Kochi on Thursday.

Gandhi said the matter would be taken up with the Prime Minister and the Union Finance Minister

International Seafood Show From Tomorrow

Kochi: The biennial India International Seafood Show 2008, jointly organised by the Marine Products Export Development Authority (MPEDA), the Union Ministry of Commerce and Seafood Exporters Association of India (SEAI) is to kick off at Kochi from Friday. The three-day event, which has attracted delegates from 15 countries, is expected to bring together Indian seafood processors, exporters and overseas buyers.

Foreign delegates

The event which expects 500 delegates including 60 foreign delegates and an exhibition of close to 100 stalls will be inaugurated by the Union Minister of State for Commerce, Jairam Ramesh. Nine overseas exhibitors have booked their stalls at the event. Addressing a press conference, Mohan Kumar, Chairman, MPEDA, said the fair was being held when the seafood industry in India has touched an all-time high exports of $1.86 billion.

19% Fall in exports

However, several issues have cropped such as the appreciation of the rupee, acute shortage of raw material, adverse market situations particularly in the US with its anti-dumping duty on Indian shrimp, which are to be deliberated and corrective measures suggested at the seafood show.

The latest export figures for April-December 2007 show that all is not well in the Indian seafood export sector. The volume of exports for the first nine months of the current fiscal was down by 19 per cent while value realisation in rupees fell by 14 per cent. This was primarily because of the poor fish landings from the East and West coasts. The only segment which countered the slump in a significant manner was tuna exports which increased by 71 per cent in quantity.

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Anwar Hashim, President of SEAI said that a major avenue to overcome the slump was to form joint ventures with importing countries such as Japan. Joint ventures between Japanese companies and producing countries such as Thailand, Vietnam etc. are already operational.

The invariable demand for home country joint venture exports have dimmed the prospects of similar exports from India to Japan.