June 7, 2007

India's shrimp exports down 23 percent

The US anti-dumping duty imposed on Indian shrimps, coupled with the requirement on customs bond, has seriously affected the export of marine products in 2006-07. 

Shrimp exports have fallen 23 percent in dollar earnings terms compared with the previous financial year. 

Total exports to the US dropped by 21.44 percent on all items. Indian seafood exports had been growing steadily until it hit a peak of 61,703 tonnes in 2002-2003, since then it has been declining, thanks to tariffs imposed.

Last year's drop was the steepest ever, prompting a number of Indian companies to leave the US market to tap the Japanese and European markets.

The number of shrimp exporters exporting from India to the US halved from 179 in 2001 to 80 by 2007.

Both the duty and the continuous bond requirement had affected Indian exports were said to have severely cut shrimp exports to the US.

Meanwhile, at India's behest, a panel appointed by the dispute settlement body of the WTO has started to look into the matter.

Hopes were up after the US Court of International Trade gave a preliminary ruling that the shrimp bond imposed on shrimp imports was illegal.