The Hindu Business Line : Festive season demand for seafood yet to pick up abroad

THE surge in demand for seafood from the US and European markets during the coming Christmas and New Year season is still to become a reality in the order books of Indian marine export firms. However, sources in the industry said that it was still not too late and firm trends could emerge even during the current month.

Though steady trends have emerged from the European markets, increased demand from the US markets is yet to materialise. The US buyers have been delaying placing fresh orders, awaiting the outcome of the `Changed Circumstances Review' that has been undertaken by the US International Trade Commission on whether the anti-dumping duty on Indian shrimp should continue or should be withdrawn, sources in the market said.

The demand for seafood surges during the festive season of Christmas and New Year as household consumption and demand from hotels and restaurants of Europe and US peak.

The orders are placed months ahead with exporters in India, taking into consideration the time required for processing, packing and trans-shipment of containers overseas.

Battered by the anti-dumping duty imposed on Indian shrimp, most of the smaller Indian exporters have stopped exports to the US markets and the bigger players have stepped up their own marketing efforts, selling in smaller retail packs for the supermarkets and retail chains, sources in the Seafood Exporters Association of India said.

The poor pace of demand is also reflected in the sluggish price line in the US markets. The price of `Indian black tiger' has fallen across the board in the US markets.

Though prices are not available for counts ranging from 6/8 and 12/15 count of `black tiger' for the week ended September 2, prices of most other counts have fallen on a month-to-month basis.

Prices of `black tiger' of 16/20 count have fallen sharply to $5.55 on September 2 from $5.90 as on August 5. The 21/25 count fell to $4.25 ($4.35) and 26/30 count to $3.60 ($3.75). On the whole, August seems to have been a month of falling prices for Indian shrimp in US markets.

In the value added segment, both the tail-on and tail-off categories of Indian shrimp have held on to their price lines.

It has been a month of steady and uniform prices for Indian value-added shrimp varieties in the US markets.

The surfeit production in the global markets seems to be driving down the prices in the US markets for bulk shrimp exports, sources in the trade said.

The bulk importers are able to negotiate better prices, while the value-added segment has been able to hold the price line since the bigger exporters have been able to avoid the bulk exporter, repack and sell in the US retail market.

However, both Europe and Japan have been opening up for Indian marine exports, both in terms of quantity and value.

The anti-dumping duties and falling price line has hit Indian marine exports to the US. During the first quarter of the current year, exports to Europe grew to Rs 430 crore, overtaking the US, which accounted for Rs 300 crore. Marine exports to Japan stood at Rs 291crore. The US was the biggest destination for Indian marine exports last year.

Despite the handicap in exports to the US, total marine exports grew by 15 per cent to Rs 1,437 crore (Rs 1,252 crore) for the first quarter. In quantity terms, marine exports grew by 12 per cent to touch 88,063 tonnes (78,669 tonnes).

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