The Hindu Business Line : Shrimp exporters seek hike in ECGC cover

The seafood exporters here have sought the Export Credit Guarantee Corporation of India Limited (ECGC) to increase the export risk coverage from the present 75 per cent of the value to 90 per cent, in order to boost export of cultured shrimp, especially to the US.

The plea was made here by Mr T. Raghunatha Reddy, Vice-President of the All-India Seafood Exporters' Association, at an interactive session organised by the corporation. Mr S. Prabhakaran, the Executive Director of the ECGC, participated in it.

Difficult time

Mr Reddy said that 80 per cent of the cultured shrimp exports, undertaken through Visakhapatnam and Chennai ports, were originating from Andhra Pradesh. In recent times, due to the anti-dumping duty imposed by the US authorities, life had become difficult for the exporters and consequently for the shrimp farmers. However, he said, the exporters are doing well in spite of the constraints and an increase in risk coverage will go a long way in helping them.

He said the ECGC branch here, set up in 2003, had greatly helped the shrimp exporters at a difficult juncture and it should continue in future.

Mr K. Venkataraman, the Deputy Director, the Marine Products Export Development Authority, said 25 subsidy schemes were under implementation for the benefit of seafood exporters and marine exports during 2005-2006 had crossed Rs 7,000 crore. There is still a lot of potential to be tapped and the ECGC's role in promoting marine exports is crucial, he added.

Mr Sitarama Reddy, Joint Director, Director-General of Foreign Trade (DGFT), said exports from the country had risen by 30 per cent during the first quarter of the current financial year against the target of 25 per cent.

Mr S. Prabhakaran, Executive Director, ECGC, said the pleas and problems of exporters would be sympathetically considered. The corporation was serving the exporters in the State, through its three branches— Hyderabad, Visakhapatnam and Guntur. A number of products had been devised to suit the software and bulk drug exporters in Hyderabad and the exporters of agri-products from the coastal AP districts, he added.

More Stories on : Exports & Imports | Aquaculture | Andhra Pradesh

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