India's seafood exporters are being strained by the impacts of the COVID-19 pandemic in a number of markets.
In the last fiscal year, the country exported seafood worth USD 6.67 billion (EUR 5.6 billion). But it is unlikely that it will exceed that target this fiscal year, which will end on 31 March, The Hindu BusinessLine reported.
Many Indian exporters could not ship their cargoes to the European Union and have had to hold their stock because of new pandemic restrictions imposed in the bloc. Furthermore, a container shortage and lack of mainline vessels from transshipment ports have added more pressure on the exporters, forcing them to change their delivery schedules, according to Seafood Exporters Association of India Kerala Region President Alex K Ninan.
The situation is no better in the U.S. market, as many exporters from India said their shipping schedules have been affected by tepid demand caused by cold weather conditions.
The changes in shipping schedules have caused cargoes to take longer to arrive to their destinations, prompting foreign buyers to delay payments, Kings Group of Companies Managing Director Shaji Baby John said.
India's seafood processors may not be able to fulfill their production targets due to raw material shortages resulting from a decline fishing activities and yields, Hindu BusinessLine reported.
India exported nearly 1.29 million metric tons (MT) of seafood, with a value of USD 6.4 billion (EUR 5.4 billion), during the 2019-2020 fiscal year, the newspaper said, citing data from the Marine Products Exports Development Authority (MPEDA).
However, MPEDA has not set any business targets in the last two years. Low shrimp prices between 2017 and 2019, and a decline in exports to the E.U. in 2018 and 2019 have hampered the seafood sector's growth, it said. The decline was clear last year as India shipped 595,169 MT of seafood products between April and October, down 24 percent year-on-year. The associated value dropped by 16 percent to USD 3.28 billion (EUR 2.76 billion).
John said exporters are hoping demand from China will recover after the country's long Lunar New Year holiday in February. Additionally, a jump in vannamei shrimp prices by around 10 to 15 percent due to a global shortages may encourage farming to expand, he said.
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