June 14, 2007

Rising rupee crippling Indian seafood industry

The rising strength of the rupee is making a big dent on the profits of India's seafood industry.

A.J. Tharakan, president of the Seafood Exporters Association of India (SEAI), has asked the government to provide incentives to offset losses by exporters and alleviate the high interest rates banks had imposed.

Tharakan noted that the industry has lost Rs 5 billion due to the currency appreciation, and added that the current appreciation of the rupee has caused damage 100 times more serious than the tsunami of 2004.

The shrimp exports from India had been particularly hit for the last two years and thus some form of relief from the government is urgently required, he added. The Indian shrimp industry, saddled with anti-dumping duties and customs bonds required by the US, has seen declining market share in the world's largest consumer market for several years.

India's seafood exports last year was worth US$1.8 billion.