Shrimp exports to be hit as EU keeps rejecting consignments

The Indian marine products export sector is facing the threat of a substantial fall in export volume as the rate at which the European Union (EU) has been rejecting shrimp consignments has been alarmingly high this year. To add to the crisis, the EU has also threatened to ban imports from India.

Along with the EU, Japan and the US have tightened the inspection of marine products, especially cultured shrimp, from India. As the EU is the largest importer of Indian marine products, a ban may hit the export sector hard.

During January-July, the EU rejected more than 50 shrimp consignments from India due to detection of an antibiotic residue, presence of bacteria, traces of heavy metals and unhygienic condition of the products. The total number of rejections in 2008 were around 30. Belgium accounted for the highest number of rejections (20) this year, followed by England, Germany and France. The sharp increase in the number of rejections was a matter of concern, said leading Kochi-based exporters. This would affect the prospects of Indian marine exports to leading overseas markets since there was tough competition from south-east Asian countries, they added.

They said that in spite of various government agencies examining shrimp consignments, the sharp rise in rejections should be taken seriously. Because of the passive approach of these agencies that the number of rejected consignments had increased this year, they observed.

The EU has already warned that they would introduce cent per cent inspection of consignments from India for antibiotic residue and presence of micro organisms.

If such a situation occurs, the Indian export sector would be in great trouble. The EU has urged the Export Inspection Council of India (EIC) that the consignments should come with an antibiotic-free certificate, besides the usual health certificate.

Sources said that EIC would soon introduce compulsory inspection of all the shrimp consignments exported from the country.

India’s exports to EU constituted 33 per cent of the total export earnings from marine products in 2008-09. The EU, Japan and the US together contributed 59 per cent of the total revenue of Rs 8,607.9 crore . Around 44 per cent of the value realisation was from frozen shrimp. On the volume front, 151,590 tonnes or 25 per cent of the total shipment of 602,835 tonnes, were exported to the EU. So, even a mild setback to the exports to EU will jeopardise India’s prospects.

EU had recently warned to import only those seafood items that had a catch certificate. This would be strictly implemented from January 1, 2010, according to the official EU journal. The requirement of the certificate is based on an EU regulation (EC No. 1005/2008) to prevent, deter and eliminate illegal, unreported and unregulated fishing.