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Kerala seafood industry in jeopardy as exports decline
Sanu George
The seafood industry in Kerala, which employs more than 100,000 people, is in jeopardy because of falling exports, according to officials of the Seafood Exporters Association of India (SEAI). The officials said that seafood exports from Kerala, which were expected to touch Rs 12 billion by the end of the current fiscal (2000-2001), might fall short by about Rs 1 billion because of a stand-off between the state government and the exporters over the former's refusal to withdraw a one percent levy charged on these exports. The levy charged goes to the Kerala Fisherman Welfare Board (KFWB), the state government maintains. "We have no option but to fall at the feet of the government to help us to solve our problems. We are meeting the government next week to express our concern against their adamant stand. We are prepared to pay a certain percentage, but not one percent as demanded by the government," Jose Thomas, SEAI president said in Thiruvananthapuram. The seafood industry crisis reached a flashpoint when theprotesting exporters in the state downed their shutters for seven days last week, resulting in business losses worth Rs 400 million.The exporters were objecting to what they called the state government's callousness to their long-standing demand. The SEAI has now threatened to go on an indefinite strike if the government does not relent. "We expect that the government will start revenue recovery against us if we do not pay the one percent. If they do it, then this industry in Kerala is finished. As things stand today ours is a dying industry," warned Mr Thomas. "The state government could charge a fee, but it is subject to providing us with basic infrastructure facilities. But imposing tax on export cannot be done," he added. However, State Fisheries Minister TK Ramakrishnan is adamant and has made it clear that the state government will wave the one percent levy aside. "The one percent levy collected goes for the welfare activities of the fishermen. We gave them opportunity to pay in installments, but even that was not done," Mr Ramakrishnan said. The total seafood export revenue returns from Kerala has reached Rs 9 billion as onDecember 31,2000. Last year, total exports from the state had reached more than Rs 11 billion. "Even though the figure this year might cross last year's figure, if one takes into account the rupee devaluation then the total turnover this year would be in the range of Rs 9 billion and this does not augur well for the industry," said Mr Thomas. Last week's exporters strike left thousands of fishermen and boat owners in Kerala, besides exporters in other states, disconcerted about their future. They are now thinking of starting a seafood processing plant of their own. "We would welcome this new plant with both of our hands, said leading seafood exporter Alex Ninan, who has factories in Kerala, Tamil Nadu and Karnataka. The gravity of the situation in this industry can be gauged from the fact that while several new factories have come up in Kerala's neighbouring states, not a single one has opened in this state. Today out of the registered 122 units in Kerala, there are less than 50 that are functional. (India Abroad News Service) Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
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