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Shrimp units look for competitive rates in U.S. markets

— PHOTO: K. K. Mustafah

FALL IN SHRIMP EXPORTS: Shrimps kept for sale at a retail outlet in Kochi. Shrimp exports to the U.S. have consistently fallen in recent years due to decline in the strength of the dollar against major global currencies, slower growth of the U.S. economy, anti-dumping tariff disputes and reduction in consumer confidence. U.S. shrimp imports in the first half of 2008 are almost unchanged at 2.36 lakh tonnes.

KOCHI: The Indian seafood industry is placing much hope on the latest move of the United States to cut dumping duty on Indian shrimp imports. Industry sources here said that it would be quite a while before they try to recover their past status and become competitive in the U.S. markets.

According to sources in the Kochi-based Seafood Exporters Association of India (SEAI) here, the Third Administrative Review in the U.S. on the anti-dumping duty for Indian shrimp exports to the U.S. has suggested a rate cut to 0.79 per cent. This is expected to go down further in July when the final review of the U.S. administration comes into force, sources said.

Earlier, the second review conducted by the U.S. Department of Commerce had brought down the anti-dumping duty on Indian shrimp exports to the U.S. to 1.69 per cent. Now with the latest cut, Indian exporters are expected to make much gains, sources said here, adding that this is a “great achievement”.

Successive efforts by the Union government, the Marine Product Export Development Authority and SEAI had resulted in the first review bringing it down to 7.22 per cent, the second review to 1.69 per cent and the preliminary findings of the third review now bringing it down to 0.79 per cent.

Though the anti-dumping duty and the customs bond rates are expected to come down sharply when the final findings are announced in July, it is too early to say that the seafood industry has really made a come back, said sources.

Indian shrimp exporters also stand to gain compared to the exporters from some of the competing destinations like Vietnam and the Far East. Shrimp imports from Ecuador will attract an anti-dumping duty of 2.09 per cent, Thailand 4.51 per cent, Vietnam 25.76 per cent, China 112.81 percent, SEAI sources said.

Though 170 Indian shrimp exporting companies came up for review, the respondents were restricted to two marine exporters from here.

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