An increase of $1 billion was recorded in just 12 months as exports were $3.5 billion during 2011-12 and 2012-13, a 30 per cent rise.
In Rupee terms, the estimates indicate earnings of Rs 20,000 crore. In 2012-13 India exported 928,215 tonne of seafood, valued at 18,856.26 crore and in 2011-12 these were 862,021 tonne and Rs 16,597.23 crore respectively, reports StocksMarket.
MPEDA now targets earnings of $10 billion by 2020.
This promising performance was due to two major factors – serious fall in the production and export of shrimp from South East Asian countries and the lowering of countervailing duty [CVD] on Indian shrimp in USA.
Production in South East Asian countries had been affected badly due to the spread of a disease called Early Mortality Syndrome (EMS). Supply from Thailand, world’s second largest shrimp producer, dropped around 50 per cent from their normal production size of 500,000 tonne per year. Likewise, other leading producers like Vietnam and Malaysia have been hit badly.
India cashed in on this global situation and enhanced its exports to the South East Asian countries. Processing plants in East Asian countries had to depend on imports from India to meet their commitments with European and US importers.
Countries like Viet Nam, China and Thailand imported more shipments from India last year, mainly for re-export.
“Rise in local demand in Korea also caused warming up of global prices,” said Anwar Hashim, leading exporter and former president of Seafood Exporters Association of India (SEAI).
Spread of EMS also caused shrimp prices to increase across the world and this in turn helped the steep rise in earnings, he added.
However, USA was the largest market for Indian shrimps in dollar terms as the country imported 51.24 per cent of the total Indian shrimp exports. This was followed by 16.10 per cent to South East Asian countries, 15.82 per cent to EU and 4.94 per cent to Japan.
Increase in the production of Vannamei shrimp, rise in the productivity of Black tiger variety of shrimp and increase in export of chilled items also helped to achieve higher exports, MPEDA said.
CVD withdrawal – A boon to India
Washington had reduced CVD to ‘nil duty’ [zero per cent] in last September. US had imposed CVD at a rate of 5.85 per cent against India and this affected the export very badly during the last couple of years.
The contribution of cultured shrimp to the total shrimp export is 77.68 per cent. Export of cultured shrimp showed a growth of 32.55 per cent in quantity. Vannamei shrimp also showed tremendous growth to 134,372 tonne from 69,565 tonne, amounting to $1,473.91 million from $540.76 Million compared to 2012-13, MPEDA data said.