September 21, 2010

US, European demand boosts Indian seafood

India's seafood exports are being boosted as demand from the US and European markets are picking up, officials of the Seafood Exporters Association of India (SEAI) said.

Exports have been aided by higher catch in India, which has also contributed in lowering domestic prices.

"Better landing has helped in higher exports. Landings of cuttlefish, squid and black tiger prawns have been higher, which has also helped in lowering the domestic price and in turn making us competitive at the global level," Anwar Hashim, national president of SEAI said.

Traditionally, exports are lean during the months of June-August on account of trawling ban in coastal states during the monsoon.

Hashim feels that European buyers and US are back on track and consumption is slowly increasing. "Exports of shrimps to the US market are on a positive note despite the fact the anti-dumping duty has increased after the fourth review. The customs bond has been waived and exporters are returning to the US market," he added.

The effect of the anti-dumping duty and customs bond enforced from 2004 was dramatic on Indian seafood exports. Indian companies exporting shrimp to US fell to less than 75 from 228 at the time of imposition of punitive duties. Frozen shrimp exports constitute almost 50% of the value of India's total seafood exports and US actions had a deleterious effect on the numerous aquaculture farms spread over coastal India.

Exports to West Asian countries have increased by 27% during the last one year while Southeast Asian countries have imported 62% more during the last fiscal, Marine Exports Product Development Authority (MPEDA) sources said.

Seafood exports from India have witnessed a sharp increase of 22% in July. During the first four months of FY 2010-11, marine exports stood at US$638 million compared with US$517.40 million in the same period of last fiscal.

Exports to Japan, which have very high quality standards has increased significantly during the period, MPEDA said. Volume of exports as of Q1 was higher by 47%, while value has gone up by 30% for the period. Dollar realisation from Japanese trade has increased by 41% during the period. Japan mostly imports shrimps from India and this is reflected in the growth exports that was going through a difficult phase after problems in EU and US markets.