February 18, 2008

Indian seafood sector in crisis

Indian seafood exports have dropped by 20 percent in rupee value and could drop 50 percent this year, halving the US$1 billion trade and bankrupting a huge swathe of fishermen, farmers and exporters across India, the Seafood Exporters Association of India (SEAI) warned.

The association said the Indian 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 percent and an 80-percent rise in fuel prices.

The anti-dumping duty imposed by the US government and competition from producers in Thailand, Vietnam, Indonesia have further added to the woes of the Indian seafood industry.

More than 50,000 workers in seafood processing could be laid off and 2 million people in the industry affected.

Measures are now being proposed for fishermen to go into aquaculture, particularly of the vannamei shrimp which is rising in popularity. Other measures such as export rebates, removal of service tax and support on transport costs are also being looked at.

The association has highlighted their concerns in a memorandum to Ms Sonia Gandhi, Chairperson of the United Progressive Alliance party, which is leading the ruling coalition who promised the matter would be taken up with the Prime Minister and the Union Finance Minister.