Euro zone debt crisis impacts seafood exports.

Kochi: The prevailing economic crisis in the European Union (EU) seems to have impacted India’s seafood trade, with exports dropping both in volume and value terms during the first month of financial year 2010-11. India seafood exports to EU comprises about a third of its total seafood exports.

Traders said after the record-breaking performance in 2008-09, when exports crossed $2 billion for the first time, much hopes were pinned this year as well, but the decline in April 2010, compared to the same period last year, is disappointing.

Volume of exports is lower by 8.4% at 38,817 tonne while in value terms exports are down by 3% at Rs 578.48 crore.

However, dollar realisation is higher at $128.60 million as against $ 118.50 million in April 2009. Exports during 2009-10 aggregated to 663,603 tonne valued at Rs 9,921.46 crore ($ 2105.60 million). MPEDA has set a target of achieving $ 2.5 billion worth of exports during 2010-2011 and an 15% increase in volume terms.

“Export of shrimps are lower during April. Squid and dried items have shown some improvement,” MPEDA sources said.

The decline in catch from east coast of the nation is worrying while there is marginal increase in capture from the west coast, Seafood Exporters Association of India (SEAI) sources said.

Traditionally, exports are lean during June-August because of the ban on trawling ban in coastal states during the monsoon.

Exporters are worried that new regulations by the European health authority for aquaculture imports could impact growth in the exports sector.

An increase in anti-dumping duty on shrimp by the US government could also work against the aquaculture sector, which depends mainly on the US market.

Frozen shrimp continues to be the major export item from India accounting for almost 41.74% of the total earning in US dollars in 2009-10. Shrimp exports during the period increased by 3.14%, 10.14% and 4.72% in quantity, rupee value and dollar value, respectively.

Traders said revival of the US economy and increased trade with southeast Asia could offer some hope for the sector during the current financial year.

Source : Financial Express