Seafood industry is facing a crisis due to the disappearance of operating margins and the sector needs an urgent infusion of funds to stave off closures and lay-off, says A J Tharakan, vice-chairman of Marine Exports Development Authority of India. He was speaking at the inauguration of the India International Seafood Show-08 here on Friday.
Tharakan pointed out that the industry was facing a crisis and called on the Union government to increase the DEPB (duty entitled passbook) rates to 15% from the present 8%.
He warned that the nation could witness drastic reduction in aquaculture production unless the industry got immediate support.
“One must, today, be a very brave entrepreneur to be in the seafood business. Operating margins have disappeared and from fisherman to aquaculture, farmer to processor, all are battling negative cash flows,” he said. “Farm-level price of Black Tiger in India is the lowest ever and farmers are averse to seeding their farms,” he added. India must quickly switch on to the cheaper vannamei species to survive, as it is equally tasty and attractive, Tharakan said.
He called on the government body, National Fisheries Development Board (NDFB), to get its act together and formulate measures to save millions of people, who are dependent on this sector. Rights for cage fisheries in inland water bodies, rejuvenation of coastal fisheries, permission for vanammei species and further exploitation of tuna resources could be the solution to the crisis-stricken sector, he said.
Tharakan also called for a consolidation in the industry, similar to the Iceland model, to achieve global scale. “Without consolidation, Indian seafood industry will remain a marginal business incapable of effectively competing globally and creating a recognised international brand,” he said.