Marine exports on slippery ground

Indian marine exports faced a setback in 2007-08 as total exports declined to around 545,000 tonnes valued at Rs 7,600 crore from an all-time high of 612,641 tonnes valued at Rs 8,363.53 crore in 2006-07. But in dollar terms, earnings have shown a marginal increase at $1.9 billion against $1.8 billion in the previous year due to a weakening dollar.

The Marine Products Export Development Authority (MPEDA) had set an exports target of $2 billion for FY08.

Experts have given four reasons for the decline in exports "� introduction of low-cost variety (Vannamei) for shrimp acquaculture by rival exporters such as China, Vietnam, Indonesia and Thailand, a depreciating dollar, shortage of raw material in the domestic market and the imposition of curbs such as anti-dumping duty by the US administration.

Shrimp continues to be a major item of the Indian marine export basket providing around 50 per cent of the total value, followed by frozen fish. European Union (EU) remained the largest importer of marine products followed by Japan, the US and China. 
 

RUPEE EFFECT India's seafood exports
Year	Quality (tonne)	Value   (in Rs crore)
2003-04	412,017	6091.95
2004-05	461,329	6646.69
2005-06	512,164	7245.30
2006-07	612,641	8363.53
Source : MPEDA

Major Asian exporters have switched to Litopenaeus Vannamei shrimp while India still focuses on the Monodon species such as Black Tiger, Indicus etc. Due to a lower cost of production, almost 90 per cent of the global shrimp production consists of the Vannamei species. This has proved to be disadvantageous for India. An appreciating rupee also affected exports, especially during the first 8 months of 2007-08.

Rising prices of diesel and other inputs have put pressure on the domestic fishing sector. Prices of raw materials have increased 3-4 fold during the last financial year.

The imposition of anti-dumping duty and a Customs bond requirement by the US commerce department also affected exports. A large number of seafood exporters stopped their exports to the US. In 2001-02, 179 exporters were there in active business with the US, but their number dropped to 80 in 2006-07.

Rejection of the Indian consignment by EU dropped to 47 last year, while China faced 350 rejections.