February 9, 2009

Indian seafood exports are likely to fall about 20 percent both in quantity and value terms this fiscal due to the global economic slowdown, an industry body has said.

Seafood Exporters Association of India president, Anwar Hashim said the global meltdown has taken a toll on the industry, and seafood prices are going down in international markets.

According to Hashim, a dip in production and unfavourable duty structure in the US pulled down exports last fiscal and the economic slowdown poses a more serious challenge this year.

Seafood exports have fallen from Rs.83.64 billion in 2006-07 to Rs.76.21 billion last fiscal.

Likewise, the total quantity of seafood exports has come down to 541,701 tonnes in 2007-08 from 612,641 tonnes in 2006-07.

Since 2006, exports to the US have been falling on account of trade barriers in the form of US customs bond, and imposition of a 10.17 percent anti-dumping duty on frozen shrimp.

Hashim also said the dumping duty come down to 1.69 percent, and they have not been able to make use of that because of the economic crisis, and exports to the US this fiscal is set to drop further.

Exports to the US fell from 43,758 tonnes in 2006-07 to 36,612 tonnes in 2007-08.

Exports to China are also facing challenges, he added.

Hashim said the depreciation of the rupee against the dollar did not have a great impact because by then the prices of seafood had dropped.

US$1 = Rp48.60 (Feb 9)