Seafood exporters are demanding incentives from the Union government to compete the increasing production cost and decreasing realisation.
In a memorandum addressed to Congress president Sonia Gandhi, Seafood Exporters Association of India (SEAI) informed her that the increasing fuel cost and limited availability of marine resources added their woes to the existing high production cost. Competition from cheaper species like vannamei shrimps is bringing down the export revenue also.
SEAI claims that the industry is facing the biggest crisis in its history and fighting for survival. It argues that the export revenue might drop to $1 billion from the present $2 billion (Rs 8,000 crore).
The sea food exporters’ body noted in the memorandum that unit prices of raw materials like shrimp dropped by more than 25% in the global market. Fuel price has increased by 60% in the last one year, while rupee has appreciated by 15% in the same period. US anti-dumping duty has virtually closed the biggest market.
SEAI has requested the government to eliminate state taxes and levy on diesel used for fishing to ensure level playing ground. They further requested that fishermen be provided with alternate means like cage fisheries for survival and to encourage the production of species like vannamei shrimps, which have lower production cost.