December 5, 2012

India has called for World Trade Organisation's (WTO) assistance to resolve its current stalled shrimp exports in Japan after the country  withheld more than 140 containers of the frozen product at the ports.

Since Japan lowered the acceptable limit of ethoxyquin (an antioxidant used in shrimp feed) in shrimp, the country has rejected seven Indian consignments since August. Japanese authorities found the level of ethoxyquin in some shrimp to be in the 0.02-0.04 ppm range, where as the newly introduced health standards tolerate levels as high as 0.01 ppm only.

Shrimp exports from Odisha and West Bengal have been halved in the last four to five months due to Japan's stricter regulations. Most of the black tiger shrimps produced in this region are exported to Japan, which has left shrimp farmers in a difficult spot.

The drop in exports has caused a decline in shrimp prices in the global markets: prices dropped 25%-35% in the last three-four months alone.

"We have raised the issue with the sanitary and phytosanitary committee of the WTO. We believe the new standards that have been imposed are unscientific and unjustified," a commerce department official said.

In 2011-12, shrimp made up half of India's total seafood exports worth US$3.5 billion.

"Most of the countries, including the US and the EU, and international bodies like Codex have not prescribed any limit for ethoxyquin in fish and shrimp. So far, there has been no evidence to prove that ethoxyquin at a level above 1ppm is injurious to health," Marine Products Export Development Authority (MPEDA) Chairman, Leena Nair, said.