Seafood exports seen down in H1 on lower demand

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Kochi: Seafood exports during the first half of the current fiscal are seen lower in volume and dollar realisation because of slow demand from the US, Europe and Japanese markets.

Sustained buying from Chinese and south Asian buyers has substantially helped the Indian seafood sector manage in the time of crisis, but low demand from the US, Europe and Japan will push overall exports down, a source in the Marine Products Export Development Authority (MPEDA) said.

The sector was, however, aided by the dramatic increase in catch of certain species like ribbon fish in the west coast. China is a major importer of ribbon fish from India.

The volume of exports for the first six months of the current fiscal was lower by 6%, while earnings in rupee were seen higher by 9% compared to the performance in the same period of the previous fiscal (2008-09). Dollar realisation is seen lower by 7%.

During H1 of FY10, India exported 2,47,578 tonne of seafood valued at Rs 4151.84 crore ($ 857.13 million) as against 2,49,135 tonne valued at Rs 3879.41 crore ($927.92 million) during the April-September period 2008-09.

Interestingly, shrimp exports have gone up during the period as against the trend visible in the last fiscal. Shrimp exports are higher by 5% in volume, 18% in rupee earnings and 2% in dollar earnings, sources said.

Shrimp exports were seen decreasing in volume and value terms during the last fiscal due to the economic slowdown and competition from cheaper white shrimps. Exports of frozen shrimps decreased by 7.5% in volume and 4% in value while the unit realisation of a kilogram of shrimp exported dropped by 7.5% during 2008-09.

A source at the Seafood Exporters Association of India (SEAI) sources told FE that exports would pick up in the later half of the year, as landings are more compared to the first half.

The trawling ban in the monsoon period affects exports because of lower catch and high domestic prices. Exports of squid and ribbon fish have fallen marginally during April-June 2009 due to the trawling ban, he said. 

Even though frozen shrimps continue to remain the major item of exports from India, competition is seen affecting profit margins. Appreciation of Indian rupee is also a major area of concern for the exporters, SEAI source said. Emergence of China and other markets have helped the sector de-risk the business.