December 10, 2012

 

India seafood affected by recession and delayed exports

 

 

The global economic recession and delay in exports of shrimps to Japan have affected India's seafood exports during the April-September period of 2012.

 

Global economic recession, especially in the Euro zone, coupled with the slowdown in export of shrimps to Japan, led to this, said major Kochi-based exporters.

 

The EU fell to the second spot after US, after a gap of around four years, in the export table. New regulations and certification systems by markets like China also adversely affected exports during the period.

 

Detection of ethoxyquin, an anti-oxidant used in shrimp feed, above the permitted level, had stalled exports to Japan for weeks. This caused huge losses to exporters in Odisha and West Bengal.

 

The issue remains unresolved. India has sought intervention of the World Trade Organisation ( WTO) in resolving the matter. Though there has been a sharp reduction in prices of items, especially those of shrimps in the global markets, a nominal growth (0.47%) was recorded in export earnings in rupee value. This is due to the fall of the rupee against the dollar in the past six-seven months.

 

Compared to the corresponding period of last year, exports declined 6.9% in quantity and 16.6% in dollar earnings.

 

Frozen shrimps continued to be the major export item, accounting for 55.4% of total dollar earnings. In volume terms, its export decreased 1%.

 

Export of frozen fish, squid and cuttlefish also decreased in terms of quantity and value.

 

The unit value of exports also showed a decline to the tune of 10.4%, provisional data of the Marine Products Export Development Authority said.

 

The US became the largest buyer of Indian marine products, followed by the EU, Southeast Asia, Japan, West Asia and China.

 

Exports to the US registered a growth of 11.4% in terms of quantity and 9.3% in rupee value, while showing a decline of 9.8% in dollar terms.