Kochi, Jan. 27 Although Indian shrimp exports to the US are lower than the levels prevalent before anti-dumping duties were imposed on the country, export volumes made a decent recovery during the first half of 2009. However, India remains a small player in a market dominated by countries with huge volumes and high content of value-added products.
Indian shrimp exports to the US fell from 7,100 tonnes during January-June 2006 to 5,900 tonnes in 2007 and further to 5,400 tonnes in 2008. Shrimp exports recovered to 8,600 tonnes during the first-half of 2009.
But India remains a small player in the US shrimp import industry. Thailand is the top supplier, accounting for over 31 per cent of import volumes at 73,367 tonnes. This is over nine times Indian exports. The other major exporters are Indonesia, Ecuador, China, Vietnam and Mexico. The top six exporting countries together account for over 81 per cent of imports to the US market.
Despite the imposition of anti-dumping duty on shrimp imports, Thailand remains the biggest exporter to the US as a major portion of its shrimp exports consist of high value-added breaded shrimp products in the ready-to-cook category.
In contrast, Indian exports accounted for just 3.6 per cent of US shrimp imports by volume during the first-half of 2009 and consists mainly of low value-added frozen and chilled products.
However, the Third Administrative Review on shrimp imports to the US has reduced the duties on imports from India, Ecuador, Vietnam and China, while it was negative on Thailand, recommending higher duties.
Impact on thailand
However, sources in the industry say that the impact on Thailand would not be significant due to the composition of high value-added items. Shrimp imports from Mexico grew by close to 60 per cent, while that from China registered the steepest decline at 27 per cent.
A meeting of the National Fisheries Institute said US shrimp importers are now awaiting the results of the review process of the US International Trade Commission which was put into operation in January and which could possibly revoke the anti-dumping duties.
Meanwhile, the domestic production of wild caught shrimp from the Southern US States has been stifling prices in the US markets. Production grew 38 per cent during the January-August period and prices in some instances have fallen by close to 50 per cent. With adequate supplies forecast to meet demand, prices are likely to remain flat.
With US consumers eating out less frequently on account of the recession, agencies such as the US National Fisheries Institute are promoting efforts to enhance consumption. The US shrimp consumption was expected to remain stable until the recovery of the economy is certain and is recognised by the consumers.
Source : Business Line