November 9, 2009
 
India Aqua weekly: India seafood exporters worry on poor US, Europe demand (Week ended Nov 7, 2009)
 
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Price Summary
  
This concluding week, Hilsa traded at Rs25, 000 per 100 kilograms (kgs) compared to last week's price of Rs25, 000 per 100 kgs.
 
Rahu (Local) was stable and traded at Rs8, 000 per 100 kgs, same as last week.
 
Prawn 'A' category settled at Rs35, 000 compared to last week's price of Rs30, 000 per 100 kg giving an upward trend of Rs5, 000 in the concluding week.
 
In Prawn 'B' category, this category was also up by a huge high price margin of Rs10, 000 and traded at Rs25, 000 in comparison to last week's price of Rs15, 000 per 100 kgs.  
 
Prawn 'C' category was also up by Rs4, 500 settled at Rs15, 000 per 100 kgs as against the previous week's price of Rs10, 500 per 100 kgs. 
 
 
Market Analysis
 
It is turning out to be a sober festival season for Indian seafood exporters. With Christmas and New Year approaching, October and November usually are busy months for Indian exporters with orders piling up, consignments getting ready and containers taking off to European and the US.
 
However, despite the European and US economies beginning to shed the lag effects of global recession, the demand for seafood is yet to pick up, said Anwar Hashim, President of the Seafood Exporters Association of India (SEAI). The demand is still confined to low-value items and enquiries for high-end value added products are minimal, he noted.
 
Part of the reason for the subdued demand in the US is due the plummeting value of the dollar which plunged by 13 percent against the rupee recently. The purchasing power of the US consumer has also been blunted and demand has not perked up significantly.
 
Consequently, the US orders are still confined to low value seafood products, according to SEAI sources. The saving grace for the US market remains the successive slashing of the anti-dumping duties, which has enabled the Indian shrimp exporters to hold their own in the fiercely competitive US markets.
 
The situation in Europe is slightly better. With the Euro strengthening against the dollar and most other global currencies, the purchasing power in the hands of the European consumer has gone up.
 
And demand is also beginning to pick up. But, given its relatively high costs, seafood would be one of the last items to get into the shopping list of the average European even in the festival season, exporters warned. The orders and consignments for the festival season should have been executed by now, exporters said.
 
With demand for low-value seafood items continuing to remain firm, exports to China are likely to pick up this year. China became the second largest seafood export destination, accounting for 15 percent of the total value.  Europe, which has accounted for 33 percent of the value of seafood exports, is likely to remain the biggest export destination this year as well. US, which was relegated to the fourth position accounting for 10 percent of India's total marine exports last year, is not likely to make much headway this year as well.                  
On the other hand, an outstanding amount of about US$50 million in bonds for shrimp is still pending with the US Customs Department as it has not been liquidated in favour of Indian exporters.

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. 
 

38th To 45th Weekly Transacted Prices of Major Seafood Species in India:

Varieties

Week 38

Week 39

Week 40

Week 41

Week 42

Week 43

Week 44

Week 45

Hilsa

27500

27500

27500

27500

25000

27500

25000

25000

Rahu Local

7500

7500

8500

8500

8500

8500

8000

8000

Prawn Zambo 'A'

27500

N. T

30000

30000

35000

N. T

30000

35000

Prawn Zambo 'B'

15000

17500

20000

20000

22500

20000

15000

25000

Prawn Zambo 'C'

9000

12500

12500

12500

12500

12500

10500

15000

US$1 = Rs.46.54 (Nov9, 2009)
 

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