September 27, 2007

Strong rupee hurting Indian seafood exporters 

The Seafood Exporters Association of India (SEAI) has asked financing institutions for lower interest costs for pre-and-post shipment finance as the surging rupee hit them hard.

The Rs 8,000-crore (US$2 billion) worth seafood export industry has also sought other measures like removal of service tax on exports and higher rates under the (Duty Entitlement Passbook Scheme) DEPB scheme.

DEPB is a duty credit entitlement issued on post export basis to reduce Customs duty on exports. Under the DEPB scheme, an exporter may apply for credit as a specified percentage of FOB value of exports, made in freely convertible currency.

These measures are necessary to make the Indian seafood industry competitive in the international market, said SEAI president AJ Tharakan.

Indian exporters are finding it tough to compete with Asian countries like China, Vietnam and even Bangladesh and Sri Lanka, he said.

The Indian products are priced out in the major markets of US, Japan and EU due to the strong rupee.

It is difficult for exporters to lower the price paid to fishermen or aqua farmers in line with the appreciating rupee, he said.

A slowdown in exports could have serious impact on the industry, he warned.