India’s marine product exports have fallen year-on-year in the April-September 2012-13 period by 6.91 per cent in quantity and 16.60 per cent in USD earnings, according to provisional figures.
"The industry is passing through a tough phase right now. Just a few months back, we had been celebrating the conclusion of our most successful fiscal, surpassing all previous export records and the USD 3.5 billion mark. Though the current setback could be attributed to some unforeseen developments in the international scene, the impact has been devastating," wrote the Seafood Exporters Associaation of India (SEAI).
Various issues have been challenging the industry. For example, an increase in reefer base rates – all shipping lines have had to deal with an increase of USD 1,500 in freezer container freight rates for all destinations and sizes of containers.
This increase will dent the industry’s competitiveness in East Asia and the Middle East, and exporters believe this was done without proper methodology or justification.
Another issue is the “exorbitant” Terminal Handling Charges (THC) levied by the Indian terminal operator, which are higher than in neighbouring countries, including Sri Lanka.
Next, the US’s anti-dumping duty on frozen shrimp imports from India has caused many exporters to abandon the US market, from 270 in 2005 to 68 today.
Also in the US, the Coalition of Gulf Shrimp Industries has filed a petition with the International Trade Administration, the Department of Commerce (DoC) and the US International Trade Commission (USITC), asking for the imposition of countervailing duties on certain frozen warm water shrimps from India and other countries. The coalition argues that the countervailing subsidies provide India’s marine export industry with an unfair competitive edge.
Finally, the Annual Supplement of the Foreign Trade Policy (FTP) published last June excluded the term “marine products,” which precluded exporters from taking advantage of the benefits.
The industry is asking government’s support and assistance to overcome the present hurdles, largely in light of the current economic turmoil worldwide but especially in the US and the European Union (EU), which have led many to worry about its future as well as its current standing. The massive reduction in the support package for this sector only serves to exacerbate these problems, according to the industry.