Beating the odds, India's exports of seafood reach an all-time high.The highest tide ever of marine product exports from India washed onto foreign shores in 200506, as the nation netted over $1.644 billion in hard currency receipts from shrimp, fish and other seafood sales which tipped the scales at 512,164 tons.
This impressive 11.21% increase in value (from $1.478 billion) and 11.02% rise in volume (from 461,329 tons) over the previous year--which amounts to 2.15% of the nation's total exports--was achieved despite the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Department of Commerce's imposition of an anti-dumping duty on shrimp averaging 10.17%. The controversial penalty was compounded with a double whammy double whammy
informal a devastating setback made up of two elements
double whammy n (col) → palo doble
double whammy n (inf of continuous bond deposits that importers in the US must fork over to Customs officials to cover estimated dumping margins that might not actually be calculated for years to come, thus tying up working capital that could otherwise be put to productive use.
India, along with the governments of five other nations whose shrimp exporters are attempting to cope with anti-dumping duties, is working diligently to get the punitive tax and bond requirement revoked. The dispute has been taken to the World Trade Organization (WTO See World Trade Organization. ) for resolution, where advocates are asserting that bonding is an arbitrary customs procedure inconsistent with WTO rules covering anti-dumping. Furthermore, the Seafood Exporters Association of India (SEA[) has filed an appeal before the US Court of International Trade to overturn the bonding provisions. Meanwhile, on June 6 formal bilateral negotiations with Washington were requested by authorities in Delhi.
G. Mohan Kumar, chairman of the Cochin, Kerala-based Marine Products Export Development Authority The Marine Products Export Development Authority (MPEDA) was constituted in 1972 under the Marine Products Export Development Authority Act 1972 (No.13 of 1972). The role envisaged for the MPEDA under the statute is comprehensive - covering fisheries of all kinds, increasing (MPEDA MPEDA Marine Products Export Development Authority (India) ), addressed key points of the issue in a bylined article published recently by The Financial Express of India. Excerpts follow:
"The stipulation regarding continuous bonds is unjust, considering the fact that additional duty, if any, payable pursuant to an administrative review will be a fraction of the total duty. There is no need to provide a bond covering 100% of the dumping margin. This has the equivalent effect of almost doubling the anti-dumping duty, if the ultimate cost to the exporter is considered. Thus, the bond itself acts as a prohibitive non-tariff barrier.
"Further, in order to furnish a bond, an Indian exporter would be required to open a letter of credit through an overseas bank. This, in turn, calls for cash deposits with the bank, leading to additional pressure on working capital, which is especially bad for medium-and small-scale exporters. Consequently, the number of exporters to the US has declined from 180 in 2002 to 115 in 2005, and the value of exports declined to $293.55 million in 2005.
"As the margins of exports shrunk, the prices offered to the farmers by exporters have also declined, seriously affecting the viability of shrimp farming and the closure of many farms. This is causing major social problems and threatening the livelihood of thousands of farmers and farm workers, particularly in Andhra Pradesh Andhra Pradesh (än`drə prä`dāsh), state (2001 provisional pop. 75,727,541), 106,052 sq mi (275,608 sq km), SE India, on the Bay of Bengal. The capital is Hyderabad. . Overall, the anti-dumping duty and subsequent bond requirement by the United States have posed a major setback to India's seafood export industry."
US Market Still Tops for Shrimp
While exports of frozen shrimp to the United States market have fallen by $84 million since the high-water mark high-water mark
1. Abbr. HWM A mark indicating the highest level reached by a body of water.
2. The highest point, as of achievement; the apex. of $394 million was reached in 2002-03, the US nonetheless ranks as India's leading market for the product range. It accounted for 32% of sales (valued at $310.4 million) during 2005-06, compared to 28% ($271.6 million) purchased by customers in the European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the
European Community , and 20% ($194 million) bought by Japan.
However, in overall terms (which includes sales of fish, squid and other seafood items), the EU ranked as India's largest market. It took 29% of total exports, followed by the United States at 23%, and Japan at 16%. Next came China at 12%; Southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. , 8%; the Middle East, 4%; and other countries, 8%.
The Tiger continues to reign supreme in India, but not the wild Orange Bengal variety, burning bright in the forest of the night. Nor is it the Orissa White of Nandankanan, quite. Instead it's Black Tiger Black tiger may refer to:
a title given in England to peers and peeresses, to the eldest sons and all daughters of such peers as have rank above viscounts, and to all privy councilors; also, to certain civic officers, as the lord mayor of London, of York, and of Dublin.
See also: Honorable Right Peneaus genus and monodon species that is king of the land and sea when it comes to marine products exported from the subcontinent. Last year sales of the farm-raised crustaceans rang up the lion's share of the nation's $970 million in exports of frozen shrimp, a category that claimed an overwhelming 59% of total seafood and fishery product turnover.
Today, aquaculture aquaculture, the raising and harvesting of fresh- and saltwater plants and animals. The most economically important form of aquaculture is fish farming, an industry that accounts for an ever increasing share of world fisheries production. production is responsible for approximately half of India's total output of shrimp. Broodstock is caught at sea by fishing vessels Customary International Law provides that coastal fishing boats and small boats engaged in trade, as distinguished from seagoing fishing boats and large traders, are immune from attack and seizure during war. This Immunity is lost if fishing vessels take part in the hostilities. , as importing broods is prohibited in a measure imposed to guard against the spread of disease and species contamination.
KV Marine Bucks Tide
"Some exporters are in a drowning state at the moment," frankly stated K.V. Viswa Mohanan, managing director of Chennai-based KV Marine Exports. "Consistent availability of raw materials is problematic, but workers have to be paid whether or not there is sufficient shrimp to process. Complicating matters for those doing business in the US are unfair duties and bond requirements."
"India had 338 exporters of marine products three years ago, but the number is greatly reduced today," he continued. "In spite of the fact that there are 146 plants certified to export to Europe, in fact there are only about 70 that are actually doing so currently."
Fortunately, KV Marine Exports is one of them. Its customers ate some of Europe's leading shrimp marketers and further processors, including Ruskim Seafoods Ltd. of the UK, Escal SA of France, and Gold Fish BV of Holland.
The company packs frozen Double Happiness brand raw king prawns for Hoo Hing Ltd., London's largest oriental food cash and carry network. Other products go to clients in Thailand and Vietnam. Exports to Southeast Asia picked up significantly this year, as heavy rains and flooding in the Mekong Valley left some processors in the region short of raw material needed to fill orders.
KV Marine also ships a good amount of headless black tiger and white shrimp White shrimp may refer to
Morning, Noon and Night is a 1995 novel by Sidney Sheldon. ," said Mr. Mohanan.
Agents source top quality wild-caught white shrimp and cuttlefish cuttlefish, common name applied to cephalopod mollusks that have 10 tentacles, or arms, 8 of which have muscular suction cups on their inner surface and 2 that are longer and can shoot out for grasping prey, and a reduced internal shell enbedded in the enveloping for KV Marine from more than 25 landing centers along a 150-kilometer swath along the east coast of India that stretches from southern Chennai and Kovalam to Mahabalipuram, Pondicherry and Cuddalore. Farm-raised black tigers are procured from ponds in southern Tamil Nadu Tamil Nadu (tăm`əl nä`d), formerly Madras (mədrăs`, mədräs`), state (2001 provisional pop. and Nellore. Almost daily deliveries are made at 8 AM to the processing plant by the company's insulated truck fleet. Shortly thereafter deheading, peeling and deveining Deveining is the removal of the gastrointestinal tract of a shrimp, a common part of preparing them for eating. The digestive track is a dark band running from the head to the tail of the animal, where the spine would be if they were vertebrates. of shrimp is performed by hand.
The highly hygienic hy·gien·ic
1. Of or relating to hygiene.
2. Tending to promote or preserve health.
3. Sanitary. factory's labor force, which is overwhelmingly female, numbers about 100 young ladies who skillfully execute every phase of production--from pre-processing and washing to icing, grading, checking, weighing, slab placing in preparation for pan-freezing, and packaging. Most of the women live adjacent to the plant in comfortable quarters provided by the company.
Fresh-frozen 16/20-count blocks of headless, shell-on whites and blacks dominate output, which ranges in size from large U/5 to small 91/100 counts. Other varieties available are flower shrimp, browns and scampi. In addition to exporting 100 tons of shrimp per month on average, KV Marine processes and ships about 25 tons of frozen cuttlefish. Two coldstores on the premises hold stocks of finished goods prior to dispatch.
Having been part of the Indian seafood industry since 1975 and an exporter for the past 15 years, Mr. Mohanan has seen business tides ebb and flow the alternate ebb and flood of the tide; often used figuratively.
See also: Ebb and companies come and go. When Quick Frozen Foods International magazine asked for an assessment of contemporary market conditions, he responded positively: "Europe is picking up and volumes going to Japan are steady. Exports to the Mid-East are doing fairly well--especially to Dubai and Sharjah. When business gets back to normal with the US, then all will be fine."
A From-the-Field Report
By JOHN M. SAULNIER
QFFI QFFI Quick Frozen Foods International Chief Editor & Publisher
Marine Product Exports from India: 2004-05 and 2005-06 Export Details 2005-06 2004-05 Growth Rate Quantity 512,164.00 461,329.00 11.02% Tons Value 7,245.30 6,646.69 9.01% Rs.crore $ Million 1,644.21 1,478.48 11.21% Unit Value 3.21 3.20 -- $/kg. Indian Marine Products MAJOR EXPORT ITEMS (In USS Millions) Others 8% (130) Frozen Shrimp 59% (970) Fish 14% (226) Cuttlefish 8% (124) Squid 8% (130) Dried 2% (30) Live 1% (14) Chilled 1% (18) Note: Table made from pie chart.