Seafood industry hopes float on stimulus

The ailing seafood export industry of the country is hitching its hopes on the second edition of the economic stimulus package, set to be announced shortly. This sector had got two benefits through the earlier package, but is reeling from the deep crisis that has befallen it following the aggravating global economic turmoil. The reduction in interest rate on packing credit by 2 per cent and enhancement of post-shipment credit facility to 270 days and pre-shipment to 180 days had brought in some relief to the industry.

Anwar Hashim, president, Seafood Exporters Association of India (SEAI) told Business Standard, exports during the current fiscal would drop 25-30 per cent in volume due to a demand crunch, cancellation of orders and reduction in prices in markets like Europe, West Asia, Japan and USA.

This will be the toughest year as performance during November and December

2008 was poor. There will not be a turnaround in Q4 of the fiscal year since the situation is worse abroad. It will be very hard to achieve Rs 6000 crore through export value realisation in 2008-09. In 2007-08 India shipped 541,701 tonnes of seafood, valued around Rs 7,620.92 crore.

Most of the overseas buyers are keen on reducing the prices sharply which made the industry in troubled waters. Although the sea catch this season was better, the export units are not in a position to exploit the advantage due to a lack of demand.