EU crisis could dent export orders for seafood | SupportBiz


EU crisis could dent export orders for seafood

Tough economic conditions in Europe could spell trouble for seafood exports out of India, which is looking to take home some $4.5 billion from the export of marine products’ this financial year, according to an official with a government agency.

India netted over $3.5 billion from marine products’ exports in the 2011-12 financial year, 23 percent of which was grossed from the European region alone. Countries in South East Asia together constitute India’s largest export market, according to data available with The Marine Products Export Development Authority (MPEDA).

"The season has just begun. The European economic crisis could dent orders coming in from that region We will have to watch developments over the next two to three months,” said the MPEDA official requesting anonymity.  

“Demand for our seafood will be lower this time around. Prices in the international market are not very attractive. But our production could be on the higher side,” the official said.

MPEDA is focusing on developing new markets, such as in Africa, for Indian exports. “But the challenge in Africa is that it is not a good market as yet for value-added exports,” the official said.

Export of marine products in FY2011-12 grew 28 percent over the previous year with frozen shrimp being the top export item out of India – it accounts for about 49% of our exports in value terms.  “This was partly because shrimp production took a beating in Thailand after severe flooding damaged shrimp farms in that country. Plague and disease took a toll on Vietnams shrimp production in 2011,” the official said.