The rupee's slide against the dollar has brought cheer to seafood exporters and shrimp farmers as exports now fetch higher value in rupee terms.
However, how much the industry stands to gain depends on a lot of factors - mainly how long the rupee slide will continue or at what level it will stabilise.
“Exporters are naturally happy about the rupee situation,” said Nobert Karikassery, Treasurer of Seafood Exporters Association of India, who is also the President of the Kerala Seafood Exporters Association.
“Those who have booked forward are happier as they gain more.”
The total value of seafood exports this financial year would definitely go up, he told Business Line.
East coast may gain Karikassery, however, said exporters on the East Coast would harvest better value than those on the West , as the latter relied more on sea catch while the former focused on aquaculture.
The aquaculture sector on the East Coast is expected to reap a windfall as this year there was record production of vannamei shrimps.
“This is the best year for vannamei shrimp industry in terms of production, productivity and prices.” The farmers had recorded aproductivity level of 24 tonnes a hectare.
The West Coast exporters would not gain much from the rupee depreciation as the 47-day monsoon trawl ban, which drastically cuts fish landings, has just begun.
By the time the fishing holiday ends, the rupee might recover.
Also, demand from Europe, one of the main markets for Indian seafood, was not very strong though the season has begun.
Advantage shrimp
One major factor in favour of Indian shrimp exporters was the drastic fall in shrimp production in Thailand, the main supplier to the US market.
Karikassery pointed out that there was 24 per cent fall in Thai production which equalled India's total shrimp exports to the US. The vannamei shrimp farmers and exporters could take advantage of this.
Coupled with the rupee depreciation and high production, it would be a boom time for the vannamei sector, he said.