Shrimp export sags under surge in Japan's rejection

Export to Japan has been stalled for the past six to eight weeks and exporters are not in a position to take the risk: T R Patnaik

The stalemate over the export of aquaculture shrimp to Japan is getting worse, with the number of recent rejections having risen to 131 consignments. Detection of ethoxyquin, an anti-oxidant, in shrimp consignments has badly hit India’s exports to Japan.

Exporters, especially in Odisha and West Bengal, are sitting on orders and trusting an official delegation now in Japan would resolve the issue. As an outcome of the meeting convened by the Union commerce ministry on August 27, the Marine Products Export Development Authority chairperson, Leena Nair, and the director, Export Inspection Council, S K Saxena, had gone to Japan. They are expected to return this Saturday.

Export to Japan has been stalled for the past six to eight weeks and exporters are not in a position to take the risk, said T R Patnaik, Chairman, Falcon Marine Exports Ltd. He told Business Standard exporters here had no prior information about testing for anti-oxidants, which suddenly begun. Exporters in the eastern region are badly hit, as a major part of the Black Tiger Shrimp produced here (about 60 per cent) was usually exported to Japan. He said at least 150 containers were in the pipe line and the potential loss was huge. If the government did not act without delay, marine exports would be in deep trouble, he added.

One outcome is a big fall in the price of shrimp in the global market, down 25-35 per cent over about three weeks.

India has, overall, suffered a serious setback on exports of marine products during the April–June period. This had dropped to 131,000 tonnes, valued at Rs 2,700 crore, against 165,000 tonnes valued at Rs 2,870 crore in the same period of 2011-12. Japan is usually the fourth largest importer in terms of volume. It had imported 85,800 tonnes, valued at Rs 2,140 crore, in 2011-12.

Anwar Hashim, a leading exporter and former president of the Seafood Exporters Association of India, told Business Standard the infection of ethoxyquin was through the fish meal used in shrimp farms.

He added the markets were also dull in Europe and America, as demand was poor from these regions due to economic turmoil. Exporters are worried, as America, Europe and Japan have a combined share of 55 per cent of all seafood export from India. Last year, the total export was 862,021 tonnes of products, valued at Rs 16,597 crore, as against 813,091 tonnes valued at Rs 12,901 crore in 2010-11. The cumulative import of Europe, Japan and the US was 308,375 tonnes, valued at Rs 8,928 crore. So, even a marginal fall in export to these countries would substantially hit the domestic sector.