India's Southeast Asian seafood exports on the rise

Seafood exports from India to neighbouring Southeast Asian countries have surpassed those to the West, as the country increasingly faces both tariff and non-tariff barriers as well as fierce competition in the western market.

Indian seafood exports to Europe and the US have declined in volume and value over last year mostly due to recession that had gripped the Western economies and reduced the purchasing power of the average consumer.

The slow revival in the US and Europe is in stark contrast to the rapid recovery witnessed in several Southeast Asian economies where Indian seafood exports are in demand. Although the EU remains India's biggest seafood export destination, there has been a nominal fall in both volume and value during the first ten months of the current fiscal. During the April-January 2009-10 period, China was the second biggest export destination, with export value grown by 27%, according to statistics.

Seafood exports to Southeast Asian countries have moved to the third position, relegating Japan and the US to the fourth and fifth position, respectively. Spurred by rapid economic revival, Southeast Asian countries are no longer merely big producers in the global seafood market, but are also emerging as significant consumers, according to Seafood Exporters Association of India (SEAI). As the demand is backed by increasing purchasing power, Indian seafood exports are increasingly getting diverted from the West to the East.

Accelerated growth in the Southeast Asian economies has generated a new demand for Indian premium seafood products. While Japan and China are traditional destinations for Indian seafood exports, emergence of new markets such as Taiwan, Thailand, Malaysia, and Hong Kong has elevated Southeast Asia to a higher pedestal. Seafood exports to Taiwan almost trebled in three years from US$12 million in 2006-07 to US$34 million in 2008-09, with demand spurred by value-added products such as surumi which Indian seafood exporters have been catering to.

Exports to Southeast Asia are poised to grow rapidly in the coming years, SEAI said.