Seafood exports dip on falling prices.

KOCHI: Declining prices, improved supply and economic turmoil in the overseas markets have pushed down the value of Indian seafood exports by 25-30 % this year although the quantity of shipments may have shown a nominal increase.

Good production in foreign markets has pulled down the prices. "Prices are lower this year in several Southeast Asian countries. We feel that there has been a 25-30 % drop in the value of exports this year.

However, the quantity should have increased," said D B Ravi Reddy, president of Seafood Exporters Association of India. Except the US, purchases by most of the other countries have been sluggish.

Southeast Asia was the largest buyer last year, accounting for 25% of the over $3.5 billion worth of marine products exports from India. Increased buying was prompted by a shortage in production, particularly the now-popular Vannamei shrimp variety.

"But this year the supply situation has vastly improved in most of the markets, reaching almost the normal production level ," said an officer with the Marine Product Export Development Authority. Vannamei prices have dropped from $8-12 a kg to $6 a kg, dragging down the earnings of seafood exporters . High demand has raised Vannamei production in India, which is expected to go over 1 lakh tonne this year.

The European Union continues to be in economic turmoil, which has hit the demand. The detection of anti-oxidant ethoxyquin used as shrimp feed has led to the detention of Indian consignments in Japan.

A high-level delegation from India went to Japan to discuss and settle the matter . But large quantities of Indian seafood exports are still detained in Japan which has caused a setback to exports.

Source : economictimes.indiatimes.com