Omicron effect: Seafood export target to be missed on subdued overseas demand

Sajeev Kumar Updated on: Jan 10, 2022

Shortage of containers and restrictions by Chinese importers to impact shipments

MPEDA officials pointed out that 69% of the export target at $5.3 billion has been achieved as of November 2021

India’s seafood exports are unlikely to achieve the $7.8 billion target set for 2021-22, as the rising cases of Omicron have led to a business slump in Europe and the UK markets, besides host of other issues that put the exporters on tenterhooks.

The Chinese situation is still worse as it continues to suspend Indian plants due to the alleged presence of Covid nucleic acid on seafood packaging materials. This has led to reluctance on the part of exporters not to ship to China, which is a good market for Indian marine products, sources in the industry said.

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Chinese exports hit

“We are still having issues with the Chinese market. We now have apprehension on the EU markets as well owing to the Omicron breakout. The shortages of containers and untimely calling of vessels had led to non- commitment of deliveries for the Christmas and New Year sales”, Alex K Ninan, President, Seafood Exporters Association of India-Kerala region, told

BusinessLine.

According to industry sources, worldwide restrictions and lockdown due to Covid, multi-fold increase in freight charges, shortage of air cargo flights are some of the challenges faced by the sector, thereby adding to the woes of shippers.

The Marine Products Exports Development Authority (MPEDA) officials pointed out that 69 per cent of the export target at $5.3 billion has been achieved as of November 2021 despite Covid and logistics challenges. The balance exports to the tune of $2.4 billion are to be achieved by March this year.

Advisories have been given to exporters to avoid Covid contamination. Task forces have been formed and units are being inspected to ensure that Covid protocols are being followed in the units. Formulated guidelines for the seafood sector and gave extensive training to exporters, the sources added.

Ninan pointed out that there is a scarcity in the availability of sufficient catch from the seas owing to climatic changes. Moreover, the rising diesel prices have forced trawling boat operators not to venture into fishing. This has resulted in the scarcity of several export-oriented varieties such as shrimps, cuttlefish, squid, octopus and a variety of other fishes in fish landing centres. Generally, the West Coast, especially Kerala, Goa, Maharashtra, Gujarat where sea catch is more, has been badly affected.

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Aquaculture focus

The East Coast is mainly dependent on aquaculture, but farmers had shown reluctance to seed for the next crop last year in the wake of a subdued overseas demand due to the pandemic. Because of this, the sector expects a lower availability of materials in the next seasons, he added.

However, there is a ray of hope amidst the pandemic times from the Gulf markets that reported a 20 per cent growth between April and December. Against the target of $41.3 crore in 2021-22, the shipments to West Asia posted a 54 per cent growth, the industry sources added.

Published on January 10, 2022 07:51
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