November 1, 2004

 

 

Pakistan Seafood Exports Expected to Grow 25%

 

Seafood exports in Pakistan are expected to increase 25 percent and cross the $170 million mark this fiscal year. This comes after the United States decided to impose a 43 percent anti-dumping duty on seafood imports from China and India, according to industry officials.

 

The US has recently stated the imposition of a 43 percent anti-dumping duty on Indian and Chinese seafood products, which share over 50 percent of the total seafood imports of the US.

 

The US move would benefit local exporters, who have started receiving seafood export orders from the US. The value of US orders is expected to double by the end of fiscal year.

 

"The 43 percent antidumping duty on Chinese and Indian products has been imposed recently," said Faisal Iftikhar, vice chairman Pakistan Seafood Industries and Exporters Association.

 

"The exporters here have now started receiving response of such development and the picture would be more clear in a month or two."

 

He said following the imposition of duty on Chinese and Indian products, Pakistani seafood exports to US would increase significantly and overall figures are expected to go up by 25 percent.

 

"We are expecting a 25 percent increase," said Mr Iftikhar. "Last year we exported some $130 to $135 million worth of seafood. Our products demand also increased in Europe and South East Asia this year."

 

The US is the third largest importer of seafood from Pakistan. This is followed by European countries, which buy 54 percent of total seafood export from Pakistan and South East Asian nations, which contribute almost 25 percent to the trade.

 

Exporters hope the US share this year would double due to the limited flow of Chinese and Indian products, which had earlier thrown out all the other products from the US market on the back of cheaper prices.

 

"The situation has changed to some extent for the last one month," said Akhlaq Hussain, of Akhlaq Enterprises, an exporter of shrimps to the US and EU. "White shrimps, which we failed to market in the US last year are now in demand."

 

He said during the days of seafood dumping by China and India, the US importers were not offering due prices of Pakistani products. The US importers cut the price of large shrimp by $2 a kilo while small size kiddi (PUD) slashed by 10 cents. He added that large size shrimp, which was exported at $16.50 per kilogram, was cut to $14.50 per kilogram.

 

"But now the situation has changed and prices are coming back to normal level," said Mr Hussain. "It would not only increase US share but also affect over export figures positively."

 

But some exporters said although the antidumping duty on Chinese and Indian products would benefit Pakistani exporters, the gains would not be substantial.

 

They said buyers are more quality conscious and prefer aqua-cultured products over marine species.

 

"The situation has proved profitable but not as much as we were expecting," said Abrar Ahmed of Seagreen Enterprises, another exporter. "Now there is a rising trend among importers that they are switching over to aqua-cultured products."

 

He said along with the US, European and Far Eastern countries prefer aqua-cultured shrimps and other species which is more benefiting to Iran and other countries who have well-developed shrimp farming and aquaculture system.

 

"But we have only marine products," said Mr Ahmed. "So there is a need to develop shrimp farming to explore more market and grab our due share."

 

Pakistan has a long 1,050-kilometre coastline and exclusive economic zone (EEZ) of 200 nautical miles producing 84,000 metric tons of seafood every year, which shares 80 percent in total seafood export.