The US commerce department’s decision to continue with the anti-dumping duty on shrimp imports from India may mar prospects of boosting shipments to that country, but it need not be viewed as a major setback for the country’s fisheries export sector. The decision follows the mandatory sunset review of anti-dumping duty after five years of its imposition in 2005. It is, however, yet to be ratified by the US International Trade Commission, which may or may not do so, depending on the true merits of the case. Besides, India also has the option of taking it to the World Trade Organisation (WTO). Nevertheless, the reality is that whatever damage the US move could cause to the Indian aquaculture export sector has already been caused in the past five years. Shrimp exports to the US fell sharply and, more significantly, the number of exporters dropped to 75 from around 200 earlier. What is really at stake today is the reversal, if any, of that damage which may not happen now. But the industry, fortunately, has got over that shock and is now exploring fresh pastures. In fact, similar is the case with the fisheries sectors of a few other countries, notably Brazil, China and Thailand, which were subject to similar treatment by the US. These countries did not even bother to present their case for the removal of the anti-dumping duty during the sunset review. The US move is not wholly devoid of any upside to it. With benefit of hindsight, one can say that it has done some good to the Indian aquaculture export industry by forcing it to look for newer markets and also diversify the export basket.
In 2005, the US was one of the most important export destinations and shrimp the main item of export. In fact, that was why Indian exporters had turned nervous on being subjected to anti-dumping duty. That is no longer the case now except for Kerala where the aquaculture sector still relies heavily on the US market and has a narrow export basket consisting primarily of shrimp, besides some quantities of cuttlefish, squid and frozen fish. The marine export numbers for 2009-10, released by the Marine Products Export Development Authority (MPEDA), bear this out. Frozen fish has now become the country’s principal marine export item in terms of quantity, though it is second in value. And the European Union (EU) is now the largest export market for India, followed by China and the South-east Asian region in that order. The US accounts only for 10 per cent of the Indian marine exports, a notch below Japan which has 13 per cent share. In fact, equally significant is the fact that fisheries exports are now taking place from the ports in almost all regions of the country, ending the Kochi’s dominance in this respect. Pipavav in Gujarat is, today, the premier port for seafood exports with Kochi, JNPT, Chennai, Kolkata, Vizag and Tuticorin being among the other major ones. This is an indication of the much-needed spatial expansion of the fisheries sector all along the country’s coast along with the freezing and processing infrastructure. The US and the EU must review their policy on fisheries subsidies and permit Indian exports to find their true, maket-determined level as WTO Director General Pascal Lamy has said last week.
