NEW DELHI (Commodity Online): India’s sea food exports plunged by 4% as compared to last year because of sluggish demand and the appreciation of rupee against US dollar.
Country’s marine export stood at $148.54 million in August this year as against $154.70 million in same period last year, said a data compiled by Marine Products Export Development Authority.
The contribution of sea foods from India to the global market was minimal as compared to other countries. The decline in demand was mainly because of global economic crisis and the realization of India rupee.
The weakening of dollar results in falling margins for exporters as their rupee realisations drop, which in turn affects their negotiating power with the global buyers.
The dollar is trading at below Rs 47, weakening by over 10% from Rs 52.17 in the first week of March 2009. During the first five months of this fiscal, marine products exports plunged by about eight per cent to $648.75 million from $703.70 million in the same period last year.
European Union is the largest market for Indian marine products with a share of 33%, followed by Japan 14.89%, China 14.44% and the $11.92%.
Source : commodityonline.com