Frontier India Current Affairs

Written on April 26, 2008 – 4:08 pm | by FICA |

India’s seafood exports which stagnated few years back are likely to touch over $ 3.5 billion from current level of $2.2 billion by 2009 provided a key thrust area include value-addition, expansion of aquaculture, technological upgradation and tapping unexplored resources.

In a paper brought out by Associated chambers of commerce & industry of India (ASSOCHAM) on “Market of Seafoods in India”, it has been projected that India’s Seafood exports which remained at $ 1.6 billion in 2005-06 and is anticipated around $ 2.2 billion in 2007-08 have potential to accelerate faster in view of their growing demand in trading blocs like EU, Middle East, China, Canada, Tunisa, Puertorico, Russia.

Export of marine products from India set an ever time record of 612641 tonnes of value Rs. 8363.53 crore and US Dollar 1852.93 million during 2006-07. Nevertheless, marine products export have shown an increase of 19.62 % in quantity, 15.43 in Ruppes value and 12.69 % in dollar terms between 2005-06 to 2006-07.

In terms of export earnings, Frozen Shrimp continued to be the largest export item (54% in Value), followed by Fr. Fish(17%), Cuttlefish(10%), Squid(7%), dried items(2%) etc.

Export of tuna fish, which contributed highly of export earnings. Tuna fish exports are targeted to reach 400 million dollar by 2010. Andaman and Nicobar Island have been identified as holding 25-30 per cent of tuna potential in the country.

Exports were effected to 90 individual countries during the year 2006-07. Except USA, all other countries increased their import of marine products from India during the year.

The paper suggests that the strength of current fleet of fish catching vessels in India is less than 60,000 in numbers with each capacity remaining at about 1.8 tonne need to be expanded to 8 tonne to increase fish acreage with latest market available remote sensing equipment to exploit the deep shipping potential of India’s marine products.

“In a bid to realize the suggested measure and steps, MPEDA needs to be financially made stronger through central allocations to fatten its lending kits so that sea exporters get adequate fiscal assistance from this institutions”, said Mr. Venugopal N Dhoot, ASSOCHAM President.

The paper has pointed out the financial assistance extended by MPEDA to marine products exporters in the last 3-4 years has declined considerably from Rs. 784.01 Lakh to 735.83 Lakh in the following year and to Rs. 607.91 Lakh by March 31st 2006, adversely having its impact on seafood exports which has been growing consistently at an average rate of 10 % per annum. Poor financial assistance to marine product exporters is one of the causes for India’s poorer export performance to its potential market destinations overseas.

However, the paper cautioned that in emerging global thrust to adoption of hygienic production practices for adhering to the WTO standards, compliance to Hazard Analysis and Clinical Control Point (HACCP) by seafood exporters is a perquisite. The supply chain in India is not strong enough to meet theses rigorous standards at the bottom. Unless capacity building of the 1.5 billion fishermen is reinforced by MPEDA quality improvements would take longer than envisaged. Incidentally the whole area of attention to fishermen remains neglected as out of 40 exporting schemes of MPEDA, only 1 is devoted to fishermen.

The major markets for Indian Seafoods include the European Union (EU), its share is 24% in quantity, 33% in value, and 32.97% in US$ realisation. USA recorded a growth of 7% in quantity, 16.12% in value and 16.03% in US$ terms, said Mr. Dhoot.

The share of Japan to our export market was 11% in quantity, 16.18% in value, and 16.15% in US$. Export to Japan had shown a positive growth during the year 2006-07.

Export to Middle East countries showed a tremendous growth by 4% in quantity, 4.44% in value and 4.46% in US$ terms.

Export to Canada, Tunisa, Puertorico, Russia, Lithuania, Reunion, Fuji Island, & Bangladesh etc. showed a positive growth, whereas export to USA, Mexico, Cyprus, Australia & Maldives Islands showed a negative trend. India’s major export items include frozen fish, cuttlefish, squid and dried items.

States like Andhra, Tamil Nadu, Kerala, Maharashtra and West Bengal, Gujarat, Orissa have huge marine products potential which needs to be harnessed in a manner that can enhance India’s export potential provided all possible incentives and encouragement in terms of policies & finance is given to exporters conclude the paper.