India may not be able to fulfill a target of exporting seafood worth USD 7.8 billion (EUR 6.9 billion) in 2021-2022 fiscal year due to trading hurdles caused by the COVID-19 pandemic, The Hindu BusinessLine reported 10 January.
Headwinds include stricter food-import inspections by Chinese authorities, the spread of the omicron variant hurting demand in Europe, and an ongoing shortage of containers and freight rate hikes.
“We are still having issues with the Chinese market,” Seafood Exporters Association of India-Kerala Region President Alex K Ninan said. “We now have apprehension on the E.U. market 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.”
India’s annual seafood export value through November 2021 was at USD 5.3 billion (EUR 4.7 billion), accounting for 67.9 percent of the country’s target. It needs another USD 2.4 billion (EUR 2.1 billion) in seafood exports to reach its goal by March 2022, according to data from India’s The Marine Products Exports Development Authority (MPEDA).
Exporters have been warned to take extra precautions to avoid any COVID-19 contamination tainting their products. The government has already formed inspection taskforces, issued health guidelines, and provided training to make sure exporters follow pandemic control regulations.
A continuing decline in catches caused byclimate change and rising fuel prices have hurt India’s coastal states, especially those on India’s west coast including Kerala, Goa, Maharashtra, and Gujarat. A jump in diesel prices has discouraged boat operators from making fishing trips, resulting in a shortage of shrimp, cuttlefish, squid, and octopus for export.
Meanwhile, farmers in India’s eastern states, where shrimp aquaculture is prevalent, are reluctant to begin stocking amid weaker demand from foreign amrkets. Therefore, India is likely to see lower material supply in the coming seasons, Ninan said.
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