November 26, 2008
India's seafood export is not looking bright due to low demand and world economy slowdown, according to a Food and Agricultural Organisation (FAO) outlook.
Prices of shrimp, a key export item for India, are seen to fall further from low demand resulted from the financial crisis.
While the US and Japanese markets have been gloomy in recent years, the EU has been providing hope for shrimp exporters. However, latest estimates indicate that the EU market is also facing problems in importing seafood.
Shrimp imports by the EU had declined 10 percent to 337,600 tonnes in the first two quarters of 2008. Imports by Spain and Italy suffered the most, while the only EU member state that increased imports was France.
Already countries such as Brazil and Argentina have seen their meat exports declining as importers in Russia and the EU find it difficult to secure credit to make their purchases, with some importers even wanting to renegotiate contracts.
The report said India is suffering from the same problem, as the economy slowdown and financial crisis hurt the prospects of Indian seafood exports, and cancellations of seafood orders are on a rise.