From February 15th to 17th, the 23rd India International Seafood Expo was held in Kolkata. In the past period of time, the export of Indian shrimp products to the Chinese market is growing rapidly and filling the declining part of the US market.
According to data from the Indian Seafood Export Development Authority (MPEDA), from April to December 2022, the seafood trade between India and China will recover significantly. back to normal.
"China has suspended some overseas exporters, not only India, but also Ecuador, because of the new crown testing problem. Now, I am very happy to say that China has lifted more than 100 exporters from India, which is an exciting development. More companies in our country will be able to export their products to China,” said Jagdish Fofandi, Chairman of Seafood Exporters Association of India (SEAI).
Even excluding those previously blacklisted companies, India's trade with China has been improving in the first nine months of the fiscal year 2022-23 (ending March 31, 2023). According to statistics, the seafood trade volume between China and India increased by 26% year-on-year in nine months, ranking among the top among many exporting countries. Over the same time period, markets that experienced growth in exports (also Japan (+7%), Vietnam (+47%), Ireland (+32%), Spain (+20%), Belgium (+34%) and Canada (+6%).
In the first nine months of the 2022-23 fiscal year (ending March 31, 2023), India’s seafood exports totaled approximately US$6.28 billion, a year-on-year increase of 2%. The US market trade volume fell by 23% year-on-year, mainly due to the increasingly fierce competition from Ecuador, and the growth of the Chinese market (increased by 26%) just offset the shortcomings of the US.
Fofandi also noted that sky-high international shipping rates over the past two years have also mostly returned to normal. "Freight rates have come down significantly now, we're at pre-COVID levels, and in terms of logistics costs, there's nothing to complain about."
In the past two years, many Indian merchants have paid exorbitant transportation costs for overseas markets such as the United States and China, which has dragged down the entire industrial chain including processing and breeding. In this regard, Fofandi said that the goal of SEAI at this stage is to urge the Indian government to resume the "Transportation and Marketing Assistance Scheme" (TMA) suspended in early 2022.
"For subsidy reasons, the government had to withdraw the plan at that time. But for the seafood industry, the aid plan is necessary, because it is an industry at the bottom of society, and its main body is farmers and fishermen, so we must work hard to urge the government to restore it. This plan.” Fofandi said, “We now hope that the negotiations with the government will produce some results, in that period when everyone lost a lot, we hope to get some compensation, and hope that the government will take into account the rates paid by exporters and the resulting costs. The loss that is caused can provide them with some form of support."