November 6, 2009

An outstanding amount of about US$50 million in bonds is still pending with the US Customs Department as it has not been liquidated in favour of Indian exporters.

The Seafood Exporters Association of India (SEAI) president Anwar Hashim said during 2005-06, Indian exporters had to execute close to US$20 million as bonds for shrimp exports of Rs950 crore to the US at the rate of 10.17 percent.

In the subsequent years, the value of exports and the rate of anti-dumping duty and custom bonds executed by Indian exporters have been falling.

Exports fell to Rs800 crore entailing a 7.22-percent duty, which would have required customs bond worth US$11.55 million in the succeeding year.

In 2007-08, the exports fell to Rs750 crore at 1.69 percent entailing close to US$2.55 million as bonds. Shrimp exports to the US shrivelled to Rs611 crore in 2008-09 and the bond requirement fell to 0.79 percent.

While Indian shrimp exports to the US may not confront such dismal days anymore, several exporters have complained that their liquidity positions have been undermined as bonds worth several millions of dollars have been pending with the US Customs Department for several years.

The problems of the Indian seafood exporters are expected to multiply as more strict and vigilant control regime is being enforced from the processing factories to the handling centres and fishing harbours to fishing boats and even fishermen.

The evidence of the extension in vigil is the latest ruling from the EU making it mandatory for all seafood exports to the union to be accompanied by a catch certification from a competent government agency.

In the recent past, rejections by health authorities in the US and the EU on detection of antibiotic residues in cultured shrimp from India have also been on the rise. Similar concerns have also been voiced by Japan, another major seafood export destination for India.

US$1 = Rs46.75 (Nov 6)