Crisis-ridden Kerala seafood industry seeks government help

New Delhi News.Net
Tuesday 5th February, 2008

Kerala's seafood industry, facing its worst crisis in more than 50 years following a steep fall in exports and decline in prices, has asked the central government for help to survive.

The Seafood Exporters Association of India (SEAI) has sought an immediate intervention of the central government to save the industry, which comprises fishing, aquaculture and its processing and export segments.

SEAI has sent a memorandum to the ruling United Progressive Alliance (UPA) Chairperson Sonia Gandhi, Prime Minister Manmohan Singh and the secretaries of commerce and industry ministries seeking urgent action to help the sector.

'If there is no immediate intervention, then the industry would be decimated,' the memorandum said.

Exports have come down by 20 percent and the price for seafood products have also sharply declined threatening the livelihood of fishermen, it said.

According to SEAI, the strengthening of the Rupee by more than 15 percent during the last few months was one of the main reasons for the drop in exports.

The other reasons for the crisis include rising fuel prices. Fuel accounts for more than 60 percent of the direct cost to the fishermen, it said.

The anti-dumping duty levied by the US on shrimps has virtually closed this market to shrimp exporters, as the duty on India, is double to that of Thailand, the association said.

'Already, nearly 25,000 workers have been laid off, during the last six months.'

'Exports to the tune of $2 billion, which could reach $5 Billion in the next five years with right policy initiatives, will drop to less than a billion if the situation is not corrected,' SEAI warned.

It demanded the central government eliminate local levies like excise and sales tax on diesel for fishing.

SEAI wants the government to promote 'vannamei' shrimp breeding similar to what Thailand, Ecuador, Vietnam and China has done.

'The cost of production of vannamei is Rs.80 to Rs.90 per kg of output as compared to Rs.180 to Rs.190 per kg of black tiger or monodon shrimp.

India has lost out to the other countries in aquaculture and export of shrimps by a long distance, due to unfounded and empty fears of risks of exotic species, whereas the same vannamei species have been very successfully cultured in Thailand and Vietnam,' SEAIU said.

Have your say on this story