Higher unit value realisation to buoy seafood exports

Aided by a sharp jump in unit value realisation, technological upgradation, value addition and tapping of unexplored resources, seafood exports are poised to touch $4.7 billion by 2013-14 from the $2.84 billion last year. However, increase in unit value realisation is seen driving the rise primarily, Mr Anwar Hashim, President of the Seafood Exporters Association of India (SEAI), said.

New markets are emerging with increasing purchasing power from South-East Asia, Africa and West Asia over and above traditional markets such as the US, Japan and Europe. As global economic development is bringing greater prosperity and changing demand patterns to new homes, demand for high value seafood products is emerging from across the world.

As far as India is concerned, much of the growth is expected to come from increased production and exports of vannamei, which is a smaller and cheaper variety of shrimp.

Vannamei exports are expected to double from 12-15 per cent of the total shrimp exports of last year to 30-35 per cent this year, Mr Hashim said. While much of the growth in the coming years is expected to come from shrimp exports, the spurt in unit value realisation from other seafood items are also expected to contribute to the value growth. Citing an example, sources in the trade said the unit value realisation from ribbon fish exports have grown 2-3 times in the past couple of years.

Major new markets emerging for seafood exports are from South Africa, West Asia and South-East Asia. The new destinations have also brought new items into the export basket with live and frozen fish and live crabs exports holding sway to destinations such as South-East Asia.

A study conducted by the Assocham has pointed out that export of marine products from India have increased to a record 8.07 lakh tonnes in 2010-11, an increase of 18.96 per cent in quantity, 27.64 per cent in rupee terms and 33.17 per cent in dollar realisation over the previous year. Higher productivity of black tiger shrimp and increased squid landings are also attributed for the growth.

It has the potential to rise even faster in view of the growing demand from the EU, the US, South-East Asia, China and Japan, the study titled “Seafood Markets in India by 2014” has said. The catch from the seas can increase if the current fleet of 70,000 fish-catching vessels with a capacity of less than two tonnes is increased to nine tonnes along with the introduction of the latest remote sensing equipment.

There was also suggestion that the Marine Products Exports Development Authority should be financially strengthened through central allocations so that seafood exporters can get adequate fiscal assistance. States such as Andhra Pradesh, Tamil Nadu, Kerala, Maharashtra, West Bengal, Gujarat and Orissa have huge potential which needs to be harnessed in a manner that can enhance India's export potential further, the study pointed out.

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