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Rise in rupee value, fuel prices hit seafood exporters

KOCHI: The strengthening of the rupee and increasing fuel price are spelling doom to the seafood export trade, the Kochi-based Seafood Exporters Association of India (SEAI) has said in a memorandum to the Prime Minister.

The seafood industry is passing through a rough patch and a ‘grave crisis’ is staring the sector which may be the worst in the last 50 years, the memorandum pointed out.

It listed out the cascading effects of the rupee strengthening by 15 per cent and the surge in fuel prices by 80 per cent, which exacerbated the problems of the industry. Add to this is the anti-dumping duty imposed on Indian shrimps exported to the United States by the government there.

The oversupply of some rare shrimp species such as ‘vannammae’ by countries such as Thailand, Indonesia and Vietnam and other South East Asian countries were also posing a threat to the Indian seafood exporters, the memorandum pointed out. The immediate competitors were selling their products at prices that are almost 30 per cent lower than those of black shrimp cultured here. The SEAI pointed out that the crisis would deprive two million fishermen of their livelihood and 50,000 workers, in the processing establishment of seafood exporters, of their jobs.

Seafood exports have already dipped by 20 per cent in rupee terms and could plunge further by 50 per cent to $1 billion in the coming year, they warned.

In order to revive their livelihood, SEAI suggested that fishermen should be encouraged to explore alternative sources of livelihood by providing land and finance for cage culture and encouraging the culture of vannammae shrimp along with black tiger. A three-member team from SEAI comprising Anwar Hashim, national president of SEAI, Elias Sait, secretary-general and K.G. Lawrence, regional president from Kerala gave the memorandum to the Prime Minister.

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