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Gaurav Raghuvanshi

Ahmedabad , Dec 30

EXPORT Credit Guarantee Corporation of India (ECGC) is designing a special insurance policy for seafood exporters that would cover the risk of rejection of consignments by western countries.

"Often it happens that consignments are rejected despite the necessary certification on antibiotic count in the sea food. We have offered to cover the expenses of getting such consignments back to the country," Mr S. Prabhakaran, Executive Director, told Business Line.

The tolerance limit for antibiotics in seafood is two per cent. Before sending out the consignment, the exporter has to get a certification that the levels are under the limit.

However, sometimes consignments are rejected as inspection on arrival reveals that the levels are higher. In such cases, the entire shipment is rejected and has to be shipped back, Mr Prabhakaran said.

ECGC recently discussed the matter with the Marine Products Export Development Agency (MPEDA) and offered to design a product for the sector.

"MPEDA has asked us for certain modifications and we are working with them to design the product that will be offered to exporters who are our existing policy holders," Mr Prabhakaran said.

ECGC has been trying to design tailor-made products for different segments of clients in order to maintain its leadership position. ECGC covers the credit-related risk of about 11 per cent of the total exports flowing out of the country and has exposure in about 200 countries.

Given that not all exports have a credit element and not every exporter takes insurance cover on its dues, ECGC is virtually the market leader in its field, Mr Prabhakaran said.

More Stories on : Aquaculture | Foods & Food Processing | Insurance

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ECGC plans product to cover marine exports

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