Coronavirus impact: Seafood exports to China unlikely to be affected

India's seafood exports to China are unlikelyto be impacted due to the coronavirus outbreak. While exports have been sluggish due to the lean period, Marine Products Export Development Authority (MPEDA) is bullish that they will grow since seafood is considered to be healthy.

During April-December 2019, total seafood exports to China rose by 75 per cent to $1.032 billion from $0.589 billion. In terms of quantity, exports increased by 46 per cent, according to MPEDA. During the period, total seafood exports to China stood at 2,42,218 tonnes as against 1,65,950 tonnes in the same period last year.

Speaking to Business Standard on Sunday, KS Srinivas, chairman, MPEDA, said that seafood exports to China have increased substantially in the current fiscal as compared to the same period a year earlier. 

MPEDA functions under Union Ministry of Commerce & Industry as an autonomous nodal agency for holistic development of seafood industry.

Of the total seafood exports from India, nearly 18 per cent was exported to China in 2019-20 (April to September), as compared to 12 per cent in 2018-19. Total exports in 2019-20 (April to September) stood at $3.56 billion. In FY19, total exports stood at $6.73 billion.

He added that the coronavirus outbreak had not affected shrimp consumption in China.

All the buyers have stocked their inventory well in advance to meet the peak demand due to Chinese New Year  and new orders are placed usually after the holiday period, which lasts till second week of February. The coronavirus outbreak comes at a time which is actually a lean period as far as exports of seafood are concerned.

"Once the coronavirus epidemic stabilises,  we expect the forward movement to continue, especially as seafood is considered to be a healthy alternative," said Srinivas.

Commenting on pricing, he said, overall pricing is firm and it is too early to predict the price hike due to lack of availability of Chinese material in the international market.

Around 500 exporters export seafood from India to China and the exporting community, in general, has not raised any issue about exports to the country on account of the coronavirus scare, he said.

However, some exporters have expressed concerns about shipping to China as the consumption of shrimp might have gone down. However, there is a strong possibility of Chinese consumers switching to healthier seafood options leaving behind other items such as reptiles of various kinds.

India is the second largest aquaculture producer in the world and the largest exporter of shrimp to the US. The country also exports a significant volume of shrimp to Europe and other markets in South East Asia.