March 17, 2008

India seafood industry faces new threat of higher rupee and high fuel price
 

The appreciating rupee and rising fuel price are hurting the seafood export trade in addition to already existing problems, according to a memorandum submitted to India's prime minister by the Seafood Exporters Association of India (SEAI).

The seafood industry is going through a hard time and the sector could be facing its worst crisis in the last 50 years, said the memorandum.

The industry is saddled with more problems with the rupee strengthening by 15 percent and a rise in fuel prices by 80 percent, according to the memorandum.

The current problems that the industry is facing include the US anti-dumping duty imposed on Indian shrimps and that the market are now switching to the vannamei shrimps from India's black tiger shrimps. Vannamei shrimp producers, which include Thailand, Indonesia and Vietnam, are also selling their shrimps 30 percent lower than Indian black tiger shrimps.

SEAI warned that seafood exports have already dropped 20 percent and could plummet by a further 50 percent to Rs1 billion (US$24.7 million), and that the crisis could deprive millions of their livelihood.

Solutions

SEAI suggested that land and financial aid could be provided for fishermen to encourage them to explore alternative sources of livelihood. The association also suggested that the domestic industry should cultivate vannamei shrimp along with black tiger shrimp in order to compete more efficiently in the seafood export trade.