India to contest US move on shrimp dumping duty

The government said it would fight the decision of the US International Trade Commission (USITC) to give preliminary approval for the imposition of anti-dumping duties on imports of shrimp from India.

"We will fight it out. We are all ready to fight the case and the industry has already hired lawyers for this," SN Menon, special secretary, ministry of commerce, said here.

Observing that New Delhi had a very strong case, Menon said India was mainly exporting 'tiger shrimps' that were not found there and that too in unprocessed frozen form.

In fact, 80 per cent of shrimp consumption in the US was met through imports, Menon said, adding that imports of unprocessed Indian shrimps generated about one million jobs in the food processing industry there. "This move will affect their processing industry", he said.

The six-member quasi-judicial international trade commission said there was a "reasonable indication" that imported crustaceans from India and five other countries were allegedly being dumped in the US at unfair prices and could harm and threaten the local industry.

The ruling will be sent to the department of commerce, which will take a final view.

Meanwhile, the Indian shrimp exporting community is divided over the possible impact of the move.