Indian shrimp exporters have been hit hard by a ban imposed by Japan in July after the anti-oxidant ethoxyquin was detected in some consignments. Shipments from the states of Odisha and West Bengal have dropped 50% since then, according to Taj Mohammed, regional president of the Seafood Exporters Association of India
(SEAI).
Efforts to resolve the issue by the commerce ministry and Marine Products Export Development Authority (MPEDA) haven't gotten anywhere, Mohammed told the Business Standard. MPEDA chairperson Leena Nair and Export Inspection Council director S K Saxena have visited Japan and discussed the issue with the authorities, to no avail.
SEAI president Ravi Reddy said Japan had set up a committee to study the ethoxyquin issue and would take a decision based on a report by the panel. He added that exports were now gathering pace. The harvesting season in West Bengal and Odisha is almost over. Shrimp farming in the next season (beginning March-April)
wouldn't be affected, as by then, the issue is likely to be settled, he added.
Most black tiger shrimp produced in eastern India are usually exported to Japan. This has led to a substantial fall in the prices of shrimp in the global markets. In the last three-four months, prices dropped 25-35%. India's marine product exports in the April-June period had already been low, as the products lost appeal in major export markets like Europe, and the United States as well as Japan.
Anwar Hashim, a leading exporter and former president of SEAI, said Europe, America, Japan and China had reduced their buying, owing to the recession. Cumulative exports in the April-June period fell to 131,000 tons, valued at Rs 27 billion, against 165,000 tonnes, valued at Rs 28.7 billion a year earlier. This was a drop of 20% in volume and five per cent in value. In dollar terms, the fall was 20%. Over 2011-12, Japan imported 85,800 tonnes, valued at Rs 21.4 billion.
Europe and the US were interested only in low-value items, said Hashim. There is concern among exporters on the US, Europe and Japan fronts, as these three countries account for 55% of the total exports from India. In value terms, they import 65% of the total values. Over 2011-12, India exported 862,021 tons of marine
products, valued at Rs 165.97 blllion. The cumulative import of Europe, Japan and the US stood at 308,375 tons, valued at Rs 89.28 billion.
