India is the biggest producer of farmed-shrimps on the planet and one of many highest suppliers to the worldwide market. Last fiscal, India exported 12,89,651 tonnes of seafood price $6.68 billion. Jagdish Fofandi, nationwide president of the Seafood Exporters Association of India (SEAI), speaks to FE’s Rajesh Ravi concerning the influence of the Covid-19 pandemic on the seafood sector, and its outlook. Edited excerpts:
How was the export efficiency final fiscal?
The seafood exports have dropped 20% in each quantity and worth phrases within the final fiscal. The influence is extra within the sea-caught sector. Exporting to the Chinese market may be very troublesome now as a result of varied points and China has a 25% share within the complete exports. The US market is secure however the EU market is sluggish as a result of pandemic. The loss from the China market can’t be compensated from different markets. Unit costs of the exported gadgets have additionally declined marginally.
What is the outlook for the following fiscal with some coastal states imposing lockdown?
In a lockdown, motion is hard even with some concessions for the seafood sector. It seems to be like that we’d see an extra drop of 10% within the exports from the efficiency of FY21. Seeding in farms is on the decrease facet in response to reviews from a number of states. The seafood sector had a positive plan of `1,00,000 crore exports by 2025, however issues look bleak and really distant now.
The sea-caught sector is seen sluggish within the current previous. What is your outlook?
We want a concrete conservation coverage with all of the coastal states coming collectively. Four years again, we reached an optimum fishing degree and it has been declining repeatedly. The capability utilisation of processing vegetation and ancillaries have dropped 10-15%. More than 50% of the workforce within the seafood business is employed within the sea-caught sector. The share of sea-caught within the complete exports is declining and now represent solely 30-35%. The financial system of the coastal sector which employs lakhs will probably be affected.
What is occurring to the aquaculture sector which was seen rising robustly earlier than the pandemic?
In the prevailing circumstances, our focus for the following yr is to take care of the output and never have a look at progress. The aquaculture sector, which primarily includes shrimp aquaculture, grew from 70,000 tonnes in 2008-09 to eight,00,000 tonnes in 2018-19 and is now beset with severe issues of illness and mismanagement. It had the potential to double by 2025.
What about points with China and the non-tariff obstacles?
China has began extra stringent checking with the second wave of Covid-19 and this, in flip, results in delayed clearance and fee. Unreasonable delay in fee, transhipment and vessel ready for expenses by the delivery traces are including to the uncertainty. Issues are additionally there with white spot illness syndrome and Covid presence in packing supplies. The total west coast is dependent upon exports to China and is struggling.
There are additionally reviews of container scarcity?
Container shortages are nonetheless a giant downside and it’s a world problem. Another large problem is that freight expenses have elevated. For refer containers to the US, expenses have elevated from $3500 in March 2020 to $6500 at current. Maersk has now introduced that from May 2021 it is going to be $12,500. Other operators will observe. No business can survive with these sorts of price improve.
What about assist from the Government for the sector?
Sickness is brewing within the sector with many small exporters on the verge of being labeled as NPAs. So far there was no direct assist to the exports sector. Markets are secure, however we’re apprehensive concerning the incentives and insurance policies. Merchandise Export from India Scheme (MEIS) was withdrawn with out an alternate scheme. Interest subvention is restricted to MSME and large exporters don’t get the profit. We are in a patrons’ market and can’t survive with out Government assist.