January 2, 2013

The US-based Coalition of Gulf Shrimp Industries has sought the imposition of duties on Indian shrimp exports to the US valued at over INR4,000 crore (US$731 million) on grounds of "unfair subsidies".

The CGSI move comes a decade after Indian shrimp exporters have begun a fight against imposition of anti-dumping duty on the charge that they were selling the produce at prices lower than in other countries and thereby dumping the material in the US.

It was a decade-long legal battle that finally brought down the anti-dumping duty from 10.53% to 2.52%. Shrimp exports to the US had been picking up, and between January and October, they fetched around INR3,145 crore (US$575 million) against INR2,485 crore (US$454 million) during the same period last year.

Indian shrimp exporters, along with officials of the Marine Products Export Development Authority, are meeting in Chennai and the US International Trade Commission would make a preliminary determination by February 11. The US department of commerce (DoC) will also probe the matter.

The petition points to countervail-able subsidy programmes like the DEPB and VKGUY schemes, SEZ and EOU status for units and export credit guarantees and wants these to be included in the investigation by the DoC as they would affect the US domestic industry.