food exporters from the state are worried over strengthening of rupee against dollar fearing drop in volume of their shipment, which has become costlier for the buyers.“Exporters are worried over fast strengthening of rupee against the dollar. It has gained by about five per cent in last three to four days,” said Gorachand Mohanty, president, The Seafood Exporters Association of India , Odisha region.
It may have a cascading effect on the exports in 2014-15, he added.
Exporters said, marine products exports may touch about $4 billion in the 2013-14.
The rupee reversed last year’s losses of more than 11 per cent and hit an eight-month high of Rs 59.57 to against the US dollar on Wednesday.
“Prices of sea foods have fallen due to declining demand from the United States. Better production prospective in Thailand has added to the woes,” Mohanty said.
The cold wave in the United States has led to decline in demand for the aquaculture shrimps as importers were unable to sell their products in the wake of declining demand from the consuming units.
This has led to piling of the inventory in the destination country.
The temperature had plunged to even -52 degree Celsius in January as the bone-chilling weather gripped the United States, a key market for the Indian shrimp industry. USA is the third largest buyer of Indian marine products, after South East Asia and European Union, with a share of 21.29 per cent in terms of value realisation as per MPEDA figures in 2012-13.
The prices of aquaculture shrimps of 16-20 grade has fallen from $18 per kilogram to about $15 and prices of 31-40 grade has come down to $10 per kilogram by March end from $13 in January, exporters said.
Strengthening of rupee will definitely have impact on the exports. This may bring down the volume of exports and foreign exchange realisation from the sale, said Prava Ranjan Patnaik, managing director, Falcon Marine exports limited, a leading exporter of the country.
Exports of all goods will be affected including the seafood sector with rupee gaining against the dollar, said Ramesh Mohapatra, president, Utkal Chamber of Commerce and Industry (UCCI) and a leading sea-food exporter.
