Indian seafood exports have slipped during the first two months of the current fiscal. The slippage has been across all fronts — rupee and dollar earnings — as well as in the total quantum of exports.
“We had an unusually good first two months last year and that is one of the prime reasons for the current fall,” Mr Anwar Hashim, President of the Seafood Exporters Association of India (SEAI), said. Stating that the fall was not alarming, he highlighted that it could also be due to climatic factors such as the timing and the onset of rains, and fluctuations in stocking or shipping delays.
Coming as it were just before the revocation of the DEPB facility, some seafood exporters were more perturbed. They pointed out that the industry has been moving from one crisis to the next — anti-dumping duty imposed on Indian shrimp exports to the US, which was followed by import curbs from EU on account of the use of certain antibiotics.
Seafood exports faltered further as deep economic crisis gripped some of the major importing countries, arresting consumption of high-value seafood by the rich developed world. The revocation of DEPB scheme for exporters could be the last straw for the industry .
What is of further concern to the industry has been the fact that the months of April and May, for which figures are available at the moment, are productive months for the east coast, although relatively lean export season for the west coast. The following months of June and July invariably shows a decline in exports on account of the trawling ban along the coast of some States. By the time the exports pick up from August-September, the DEPB facility would be withdrawn for Indian seafood exporters.
Mr Hashim said the withdrawal of DEPB was the real concern as the exporters could pass on some of the benefits to the farmer and the fishermen. He said most of the fishing boats now use Chinese engines, which provides increased power and speed, although with reduced life span. The fishermen have to change the engines every 3-5 years, which is where the DPEB facility becomes useful.
Exports
Given the difficult times that seafood exporters have been confronting, SEAI is proposing to meet the Director-General of Foreign Trade next week to explore if the DEPB facility could be extended till the end of the current fiscal.
From 54,929 tonnes in April last year, seafood exports slipped to 53,458 tonnes in April and further to 44,879 tonnes in May this year. Realisations have slipped from Rs 798 crore in April last year to Rs 758 crore in April this year, and further to Rs 657 crore in May. Dollar earnings, meanwhile, slipped from $178 million in April last year to $170 million in April this year, and further to $146 million in May.