January 5, 2009
India seafood industry sets hopes on second economic boost package
The ailing seafood export industry in India is setting its hopes on the second edition of the economic stimulus package which is to be announced shortly.
The sector had benefited through the earlier package but is reeling from the deep crisis that has befallen it following the global economic turmoil.
The reduction in interest rate on packing credit by 2 percent and enhancement of post-shipment credit facility to 270 days and pre-shipment to 180 days had brought some relief to the industry.
Seafood Exporters Association of India (SEAI) president Anwar Hashim said exports during the current fiscal would drop 25-30 percent in volume due to cancellation of orders and reduction in prices in markets like the EU, Japan, the US and West Asia.
This will be the toughest year as performance during November and December 2008 was also poor.
In 2007-08 India shipped 541,701 tonnes of seafood, valued around Rs 7,620.92 crore making it hard to achieve Rs 6000 crore through export value realisation in 2008-09.
Although the sea catch this season was better, the export units are not in a position to exploit the advantage due to a lack of demand.
