The Hindu Business Line : Shrimp exports fall sharply post-tsunami

"On the heels of the December 2004 tsunami, according to the most recently compiled statistics, US shrimp imports from India dropped 57 per cent in January and Februarycompared to 2004.

Shrimp imports to the US from Thailand dropped 27 per cent during the same timeframe," a report in the US-based CITAC's Shrimp Task Force has said.

CITAC is the Consuming Industries Trade Action Coalition based in Washington DC, fighting against the imposition of anti-dumping duties on shrimp from countries such as India and Thailand.

"The export performance in the succeeding months was even worse. The prices in the domestic and international markets plummeted and the exporters liquidated their stocks. The aquaculture farmers barely got prices to cover their costs. Given the uncertainties in the market, it is doubtful if the farmer will begin stocking his aquaculture farm in the coming season," sources in the Seafood Exporters Association of India (SEAI) said.

Exporters to the US have also been badly affected. With shrimp importers into the US from countries such as India having to pay up duty before hand, a large number of Indian exporters have withdrawn from the market.

Only about five per cent of the shrimp exporters to the US are big-league players in the market.

But these players have aggressively begun acting as the `importers on record' in the US, opening subsidiary units to undertake their import operations, opening warehouses and diverting their consignments from bulk importers to retail processors to realise better value, and commenced distributing their products in small retail packs. But the large numbers of small exporters had shown no signs of returning to the market, sources in SEAI said.

Meanwhile, the US-based International Trade Commission decision to launch a 120-day "changed circumstances" review that could lead to the revocation of duties on shrimp imports from India and Thailand as a result of the damage caused by the tsunami has been welcomed by Mr Wally Stevens, Chairman of the CITAC Shrimp Task Force.

He said: "We support the ITC's decision to investigate whether or not shrimp imports from India and Thailand still pose any kind of `threat' to the domestic shrimp industry."

The Southern Shrimp Alliance (SSA), a loose confederation of shrimp producing states, trawl boat owners and operators' statement that they alone should not bear `the burden' of helping these countries, but that all Americans should share the burden of providing tsunami relief, rings hollow since duties collected on shrimp imports only benefit the shrimp industry.

Thanks to the Byrd Amendment, the money collected from the tax on shrimp imports is now redirected from the US Treasury, where it would have benefited all Americans, straight to the pockets of SSA members, Mr Stevens said. On the other hand, the American consumers are now paying more for the shrimp that they consume.

CITAC and the American Seafood Distributors Association (ASDA) formed the CITAC/ASDA Shrimp Task Force, joined together to promote the interests of US grocers, restaurants, processors, distributors, business councils and US importers.

"If lifting the duties on India and Thailand could benefit tsunami victims without hurting the US shrimp industry, then the obvious, rational action is to terminate this tax," Mr Stevens pointed out.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
REI Agro's $28-m FCCB issue

Shrimp exports fall sharply post-tsunami

`Catch declining due to fishing during breeding period'

The not-so-happy harvests

Spot rubber up on bullish TOCOM

Tamil Nadu blazes new trail to support small growers

TN tea subsidy scheme `timely'

Not much to cheer

Tripartite meet on Bengal tea workers' strike tomorrow

TN announces support price for copra