Thailand Floods May aid Indian Seafood Business.

KOCHI: Massive floods in major player, Thailand, are creating ripples in the global seafood industry. Destruction of fish farms in Thailand could become an opportunity for other producers such as India to fill the gap. However, India's export of mackerels may be lower with major buyer Thailand out of the market.

Thailand is one of the major producers of seafood. A clear picture of the extent of damage is yet to emerge but exporters have started shifting shipments from the Bangkok port. "Reports say floods have affected some aquaculture farms in low-lying areas. Cold storages and factories are also located in the region. Production may suffer," said Anwar Hashim, managing director of Abad Fisheries.

Shrimp farms in India had surplus material this year but were forced to sell at a cheap rate to Vietnam as a lower demand in the US and Japan led to a fall in prices of cultured shrimps there. Since a major part of consignments for Christmas and New Year holidays have already been sent, the seafood industry feels that the exact impact will be felt later.

The prices of cultured shrimps, particularly the Vannamei variety, have been more or less stable in the current year. "The flood damage is limited to central Thailand and Bangkok. The destruction may not have a major impact on global production," said TR Patnaik, chairman of Falcon Marine Exports.

As a buyer of Indian seafood, Thailand along with other South East Asian countries, has become a force to reckon with in the recent times. It accounts for 16% of the Indian seafood exports valued at Rs 12,900 crore. This has come as a blessing for the country as the major buyers the US and Europe are facing a financial crisis. Thailand is now a big buyer of mackerels and ribbon fish.

Source : economictimes.indiatimes.com