Indian seafood exporters faced with rough weather

Indian seafood exports have been facing rough weather over the past few months due to poor demand from the EU and US, a fluctuating rupee and high cost of raw materials.

 

According to the Indian Seafood Exporters Association (ISEA), the total exports in the previous financial year amounted to Rp1.8 billion (US$36 million), down to approximately Rp1.7 billion (US$34.5 million) in 2008-09.

 

ISEA president, Anwar Hashim said that over the past few months, the economic downturn coupled with rising price of raw materials in India is making the business not viable for exporters.

 

Hashim said most of the boats were not leaving the Indian docks due to high diesel prices.

 

He added that most of the buyers in the US, EU and Japan are not booking any new consignments with Indian seafood traders as they site very low offtake and demand of the previous consignments.

 

As a result, a number of fishermen in Kerala have cut down production, pushing up price of fish in the local market.

 

Even though international rates have fallen due to low demand, the Indian seafood market is quoting sharply higher.

 

ISEA head of the Maharashtra chapter, Gul Kriplani said the price of seafood across the board is higher by nearly 15 percent in India, making it not very economical for purchase.

 

Kriplani stated that while business had been 'normal' during the first six months of the financial year, since November there has been a substantial decline in demand.

 

He expected that the export business across the country would have fallen by nearly 25 percent from the previous year.

 

He also estimates that even if the situation improves, the decline in demand during the peak season would dent the business considerably.