August 12, 2009

India's seafood export sector is facing the threat of a substantial fall in export volume as the EU has been rejecting Indian shrimp consignments this year.

 

Besides the EU, Japan and the US have tightened the inspection of marine products from India, especially cultured shrimp.

 

As the EU is the largest importer of Indian marine products, a ban may hit the export sector hard.

 

During January to July, the EU rejected more than 50 shrimp consignments from India due to detection of an antibiotic residue, presence of bacteria, traces of heavy metals and unhygienic condition of the products.

 

The total number of rejections in 2008 was around 30. Belgium accounted for the highest number of rejections (20) this year, followed by England, Germany and France.

 

The sharp increase in the number of rejections would affect the prospects of Indian marine exports to leading overseas markets since there was tough competition from Southeast Asian countries, said leading Kochi-based exporters.

 

They added that the sharp rise of rejections should be taken seriously because it was brought about by the passive inspection approach of various government agencies.

 

The EU has already warned that they would introduce a cent percent inspection of consignments from India for antibiotic residue and presence of micro organisms.

 

If such a situation occurs, the Indian export sector would be in great trouble. The EU has urged the Export Inspection Council of India (EIC) that the consignments should come with an antibiotic-free certificate, besides the usual health certificate.

 

Sources said that EIC would soon introduce compulsory inspection of all shrimp exports.

 

India's exports to EU constituted 33 percent of the total export earnings from marine products in 2008-09. The EU, Japan and the US together contributed 59 percent of the total revenue of Rs8,607.9 crore. Around 44 percent of the export value was from frozen shrimp.

 

India exports 151,590 tonnes or 25 percent of total shipment to the EU, therefore even a slight setback to volumes sent to the EU will jeopardise's India's prospects.

 

The EU had recently warned that it would import only seafood items accompanied by a catch certificate. This would be strictly implemented from January 1, 2010, according to the official EU journal.

 

The requirement of the certificate is based on an EU regulation to prevent, deter and eliminate illegal, unreported and unregulated fishing.