November 27, 2003

 

 

India Shrimp Market Hit Hard On US Move To Seek Anti-Dumping Proceedings

 

A move by the US-based shrimp producers to seek anti-dumping proceedings has hit the India's shrimp market hard, with the exporters having almost no options for sales.

 

Prices of black tiger shrimp in India have hit all-time lows and range at levels prevailing a decade back.

 

The US purchasers are awaiting developments; Japan, till recently the major buyer, has stayed away due to quality problems and South-East Asian producers are not in the market because of high inventories, according to trade sources.

 

Southern Shrimp Alliance, a group of shrimp fishermen from eight US States, is against shrimp imports into their country since they claim it affects the domestic industry. They are expected to file a petition by month-end seeking anti-dumping proceedings.

 

Some US buyers who picked up stocks at higher prices earlier are rejecting consignments, due to, what the industry describes as, "buyer-related problems.''

 

Prices to the US range around $4 per pound on 16/20 counts black tiger shrimps, down by 80 cents to $1 compared to a fortnight ago. So, a container load of 36,000 pounds of shrimps has dropped by $36,000 in value. US buyers, including a major food service chain, are rejecting consignments claiming shortfall in specifications and low quality, an exporter said.

 

Most US importers are not picking up stocks fearing levy of anti-dumping duty. However, some have placed orders taking advantage of low prices and hope to get the containers shipped early in December before any duty is announced or comes into effect.

 

The legal hassle could set the exporters back by more than $1million, which is to be met through contributions from the exporters. They do not have the luxury that the US shrimp alliance enjoys - Louisiana Government has expressed willingness to share the cost. The Union Commerce Ministry, while giving enthusiastic backing, has declined to share the expenses, they said.

 

With the problems in the US, the exporters find themselves without other marketing options. Japan, the major buyer till a few years back, has stayed away from the market for more than a year. It is expected to pick up about 23,000 tons of shrimp from India by 2003 end against 42,000 tons in 2001. The US in the last two years has purchased over 50,000 tons from India. The EU purchases are sporadic.

 

The reprocessors in Vietnam and Thailand, who normally pick up stocks at low prices, are themselves faced with a glut because of overproduction of vannamei, a low-priced species of shrimp, and are not interested in adding to their inventories.

 

Some clarity is expected once the anti-dumping petition is filed. It is only the huge quantities of vannamei, shipped by China and the other shrimp producers in the South-East Asia that has sparked the anti-dumping move, according to trade sources.

 

It was initially anticipated that at least 12 countries would be named in the anti-dumping petition. But the number could be pared because of the expenses involved, sources said.