Fisheries sector facing worst ever crisis
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18/02/2008
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Business Standard
In a memorandum submitted to UPA chairperson Sonia Gandhi, the Seafood Exporters Association of India (SEAI) has expressed serious concern over the plight of the marine exports industry in the country. In the memorandum, the association has said that the fisheries sector is facing the biggest ever crisis in its history mainly because of the rupee appreciating more than 15 per cent in the last one year. Besides, an over 80 per cent rise in fuel prices, the anti-dumping duty levied on shrimp by the US administration and abundant supply of the low-cost Vanammae species of shrimp by countries such as Vietnam, Thailand and Indonesia have also affected the export sector badly in the last 10-12 months. According to SEAI, the crisis has led to over 2 million fishermen, farmer and 50,000 workers in the seafood processing sector losing their livelihood. Exports have dropped by 20 per cent in the rupee term and could drop by 50 per cent in dollar term, leading to severe crisis in the sector. SEAI has demanded the UPA chairperson to eliminate local levies of excise and sales tax on diesel for fishing, provide land and finance for cage farming, introduce Vanammae shrimp along with Black Tiger in aquaculture, increase DEPB rates by an additional 5 per cent and remove service tax. It has also asked for support under the Foreign Trade Policy. Sonia Gandhi assured the association that the issues would be brought to the notice of the prime minister and the ministers of finance and commerce for immediate attention.