India

“This has killed the industry,” according to Roobzbeh Daruwalla, president of the Seafood Exporters Association of India (SEAI), Maharashtra Region, who was speaking to World Fishing. “We [might be able to handle] the 10 per cent duty but we cannot survive with the bond.” Indian shrimp exporters have launched legal action in an appeal to remove the imposition of customs bonds.

The tragedy of the Tsunami last December, has prompted a decision by the United States International Trade Commission to set up a 120-day "changed circumstance" review of anti-dumping duties.

Indians cannot understand the American attitude towards Indian shrimp. “Americans can see that while the rent of my office is only US$100 a month, for them it is US$10,000 a month. You cannot compare the standards of living in America and India. My fishermen and my farmers here are happy with maybe three or four dollars a day when people in New York can’t even get a ticket for the subway with that money" remarked Mr Daruwalla.

In January and February 2005, USA shrimp imports from India dropped 57 per cent compared with the same period in 2004. The figure is supposed to be a consequence of the Tsunami but it could also be a reflection of what Indian and other South East Asian countries may face in the future -- an anti-dumping review is due in February 2006, if the duties imposed by the USA continue.

Seesaw tilt

It used to be the political tilt between India towards Russia against the US and then back to India with the US against Russia when it came to foreign policy and superpower rivalry. Now it is fish. India turned to the US, Far East and Japan when Brussels imposed restrictions. Now India is turning away from the US and now looking for other markets like South Africa, and the EU again, the latter already representing between 18 and 20 per cent of Indian exports in terms of value. Unfortunately for India, exports to the Middle East and to Japan (at one time the main buyer from India) are now facing declining markets.

However, the prices that shrimp win in these new target markets are much lower than in America, where consumers are willing to pay higher prices for quality shrimps.

The SEAI recognises that the country’s aquaculture sector is still in a comparatively immature phase, but demand from the USA had indicated a significant and positive change of attitude towards Indian products.

“In the long run, red meat will go out of circulation, as it is a high-cholesterol product and seafood consumption is coming up. Shrimp is [just such] a non-high cholesterol protein”, says Mr Daruwalla. Americans “should look at us as a potential long-term supplier, which is what we can [become] because there is no other country in the world with a [low-cost working] population like ours, apart from China - and we have no legal, language or other barriers,” he added.

The Tsunami disaster that hit South and Southeast Asia and caused a crisis in people's lives and livelihoods, has also hit fish production, although it is not yet fully known to what extend and for how long. Indian exporters report that many hatcheries were washed away, affecting not only this year’s production but also next season’s harvest.

India's national Department of Ocean Development (DOD) announced that it has assembled an expert committee to assess the long-term effects of the Tsunami on the marine eco-system and its resources. The study will include changes to the ocean bottom, the impact on shrimp and other fishery resources and marine flora and fauna.

Dr. V.S. Somvanshi, director general of the Fishery Survey of India (FSI), told World Fishing that a preliminary analysis in January 2005, two weeks after the Tsunami, showed the highest catches of yellow fin tuna for January/February in two years. He said that changes in water colour and temperature could have positively affected oceanic resources. But he stressed this was just an observation and it was too early to know, one way or the other.

The lack of raw material for processing and expand direct exports are more causes for concern among Indian exporters. In terms of quantity, exports were down by 11.3 per cent in 2003/2004 compared with the previous year and only 15 per cent of the India's modern freezing facilities are being used. The Vice President of SEAI, Gul Kripalani, told World Fishing that there was potential to sell more but the product was not available. “In the last four years stocks have been depleting. This decline has been specially fast in the West Coast for the last 2 or 3 years,” he added.

Exporters are fighting for the implementation of new conservation measures and claim that some varieties of shrimp, such as white or tiger prawns have almost disappeared. Twenty years ago, annual stocks of lobster in India and Australia were about 300 tonnes, now Australian production has reached 6,000t while India's haul has dropped to 200t.

Indian exporters are asking for the existing two-month seasonal closure (15 June-15 August) to be extended for another month and complain about fishermen catching juveniles.

“Last year the government brought in legislation banning exports of lobster below 300g but fishermen still catch them and sell them to restaurants and supermarkets locally. So you can get juveniles of 25g, 30g and 50g . Even today, lobsters full of eggs are caught, but this is not illegal fishing because this rules do not apply to catching but to exporting,” says Mr Kripalani.

Regional politics

Some suggest that political conflicts between Pakistan and India and Bangladesh are also affecting the low catches reported by the industry. Fishermen from each country are routinely arrested by the other party, jailed and have their vessels confiscated for straying into the wrong territorial waters. “The fish is there [e.g. off Maharashtra and Gujarat] but fishermen don’t want to go to sea. There are up to 200 fishermen in jail in Pakistan and when fishermen are released they find that their fishing equipment has been stolen,” says Mr Kripalani.

India has more than 800 exporters of seafood, 265 of them with HCCP certification and 120 are approved to export to the EU. With these numbers going up, the growth will have to come from the huge potential of unexploited resources in the Indian Ocean as well as from aquaculture and the production of added value products. At the moment, most exports are block frozen fish and shellfish but companies are starting to invest in more and more machinery for processing added value products. Import duties for such machinery have been removed and in addition the government is giving up to 25 per cent subsidies for its acquisition as part of efforts to boost the sector.

Fish in the sea

Despite having an EEZ of just over two million sq km and an enormous fisheries potential for development beyond the coastal zone, most fishing activity is still concentrated in areas of up to 50-metre depth within territorial waters by fishermen in boats targeting the high-value wild shrimp. So, while oceanic resources are unexploited, coastal resources are being depleted due to heavy fishing pressure. As part of the new Comprehensive Marine Fishing Policy, the Government is now encouraging fishermen to go further out to sea and to invest in new and refurbished second-hand foreign fishing vessels. This would enable them to fish for as yet unexploited resources such as tuna and allied species -- shark or marlin. It is estimated that there are 3.9 million tonnes of fish potential but actual fish production is only 2.28mt.

Dr. V.S. Somvanshi, told World Fishing that there is 240,000t of unexploited tunas, 80 per cent of that being yellow fin and even this figure could be higher when future surveys are done.

At the moment there are 68 vessels above 20 metres which are fishing for deep- sea shrimp and deep-sea lobster but the FSI is advising the industry to reduce the number to 40.

The pelagic and columnar resources of the coastal zones, which have export potential, are also said to be inadequately exploited through fishermen using the wrong fishing gear and poor handling of the fish after the catch. An Indian fisherman can earn US$1 for a kilo of tuna, while his Sri Lankan colleague can make US$2.5. A few schemes are now being developed to upgrade fishermen's skills and the SEAI, in collaboration with the Marine Products Exports Development Authority (MPEDA) are bringing in experts from Singapore to teach longlining skills to Indian fishermen.

In addition, eight trawlers have recently been converted into monofilament longliners and have reported good catches of yellow fin tuna.

New foreign policy

Two decades ago, deep sea fishing in Indian waters started by charter, leasing of foreign vessels and joint ventures that mainly employed foreign labour. These policies met with strong political opposition from local fishermen who saw how foreign vessels had illegally fished in the country's territorial waters and endangered their livelihood. So the government gradually did away with the foreign licensing system. Now, under the new, deep-sea fishing policy guidelines, India is trying to build its own fishing capacity but as lead partner, hence “joint venture initiatives, with equity norms for package proposals, involving catching fish from the EEZ for processing on shore and for export would be considered,” says the Comprehensive Marine Fishing Policy paper. In addition, existing joint venture fishing vessels will be required fully to indigenise their operations.

Indian fishing industry needs high investment in infrastructure and IT technology such as fish finders and wireless communication. At the moment only the survey fleet and some selected fishing vessels have onboard vessel monitoring systems (VMS). This technology is necessary if vessels are going to go further from the coast and spend longer periods at sea, and if the authorities want to control the catches.

At the same time, advanced training of the fishermen is required as well as a change in their mindset towards deepsea work as well as the commercialisation of new species for sales into the Indian market.

Are the fishermen prepared to change? The answer is "Yes", as long as they get financial help from the Government, they are ready and willing. This was the message World Fishing was told when visiting Vesava Machhimar Vividh Karyakari Sahakari Society Limited and Madh Machhimar, two fishing cooperatives on the outskirts of Mumbai. Fishermen there complain about the low prices they get from selling to exporters and the declining of high value stocks such as prawns. They are willing to upgrade their vessels and switch to new species. They look forward to training in the use of more effective and environmentally friendly fishing gear. At the moment, mesh sizes are as small as 30mm, and they welcome any foreign investment involving local communities so they can improve their fishing activities. Perhaps India could follow other countries such as Namibia or Mauritania where fishing agreements and joint ventures with EU countries are reported to be successfully helping to develop the local fishing industry.

What remains to be seen now is if the Indian Government is ready to work towards a sustainable and profitable fishing industry.

Catchers vs Sellers

While exporters complain about the lack of raw material, fishermen look for a price guarantee from the buyers of their catches. Mr Bhaver, an expert in Indian fisheries from netmakers Garware-Wall Ropes, says that some voices have suggested applying minimum support price system, which is used for Indian farmers, to fishermen. This way, when prices are falling, the Government would buy the catches at a suitable price to ensure fishermen a minimum price depending on the market value of the different species. This system, however, has been difficult to implement as prices are based on stock availability and catches are uncertain.