Seafood Exports Up On Better Demand.

KOCHI: Higher demand and better prices have helped seafood exporters step up their business in the current fiscal. The exports are likely to achieve the target of $2.5 billion set for 2010-11. “There is an improvement in demand from the main markets like the EU, Japan and the US,” said Anwar Hashim, president of the Seafood Exporters Association of India .

He said that the industry could match the higher demand with increased supplies due to the improvement in catch and a better output from the shrimp farms. In the April-December period of the current fiscal year, the exports grew 6.6% in quantity terms to touch 5,13,373 tonne. The total exports stood at 6,78,436 tonne last year. The increased shipment of shrimps, including the less-expensive vannamie, to major markets, was one of the main reasons for the better show.

In rupee terms, the exports saw a 19% jump to `9,187.18 crore. In dollar terms, the exports were up by 24% to touch $2,028.58 million. “Apart from shrimp, we could also ship out a larger quantity of squid this time,” Hashim said. The oil spill in the Gulf of Mexico has led to a higher US off-take of shrimp and other items from the country. There was a better demand from the Japanese market also. “We were fortunate to have a better catch of squid, which was largely exported to the EU,” the SEAI president said. The export of squid saw a 60% rise in this fiscal year while the value of exports registered a 78% increase.

The EU was the major market for Indian seafood in the April-December period while the US and Japanese markets recorded a healthy growth. However, the strict conditionality associated with the import licence for the industry and the high costs of export credit have posed problems for the industry. The export turnover would improve if raw material can be imported for re-exports, Hashim said. “But even for small lapses, exporters are penalised severely,” he added.

Source : economictimes.indiatimes.com