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Rajkot: The slowdown in economy in China and the poor demand from European market have affected the fish exports from Gujarat in the current financial year, so much so that the inventory of frozen fish has reached a size of above 1 lakh tonne. This is a double whammy for the exporters.
Gujarat exports seafood worth around Rs 5,000 crore a year and of this, it sends to China seafood worth around Rs 2,500 crore, which is 50% of the total exports.Exporters say the export to China has been down by 20% to 25% in the new season that started in August.
Jagdish Fofandi, president of the All India Sea Food Exporters Association, said: “The fish of Gujarat coast is popular among restaurant-goers in China, but there is significant decrease in restaurant-goers there as they are in saving mode. There is a pocket of lower middle-class people in north China where there was a huge demand for our ribbon fish but that demand has shrunk.”
In 2023-24, China’s growth rate has been way below its earlier growth rate, which has resulted in high unemployment, thereby affecting the the seafood exports from Gujarat. In addition to the slowdown in China, the demand from European market is also down.
The European market’s share in total seafood export from Gujarat is around 30%. High-end fish like cuttlefish, pomfret, lobster and jumbo shrimp go to the European market. The European market is struggling with high energy prices, including high gas, electricity and fuel prices, because of the ongoing war between Russia and Ukraine and this has caused huge inflation.
“Because of the slowdown in demand from China and European countries, there has been an inventory of more than 1 lakh tonne of frozen fish in our cold storages,” said Fofandi. In Gujarat, there are over 170 units which process and export fish and 150 of these units are in Veraval.
Leading exporter Kenny Thomas said, “There is a 20% to 30% drop in the export and it is a tough year. The inventory of all exporters in Gujarat is full because of slow off-take from European countries and uncertain conditions in China. The exporters are holding the inventory hoping things will change.”
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Gujarat exports seafood worth around Rs 5,000 crore a year and of this, it sends to China seafood worth around Rs 2,500 crore, which is 50% of the total exports.Exporters say the export to China has been down by 20% to 25% in the new season that started in August.
Jagdish Fofandi, president of the All India Sea Food Exporters Association, said: “The fish of Gujarat coast is popular among restaurant-goers in China, but there is significant decrease in restaurant-goers there as they are in saving mode. There is a pocket of lower middle-class people in north China where there was a huge demand for our ribbon fish but that demand has shrunk.”
In 2023-24, China’s growth rate has been way below its earlier growth rate, which has resulted in high unemployment, thereby affecting the the seafood exports from Gujarat. In addition to the slowdown in China, the demand from European market is also down.
The European market’s share in total seafood export from Gujarat is around 30%. High-end fish like cuttlefish, pomfret, lobster and jumbo shrimp go to the European market. The European market is struggling with high energy prices, including high gas, electricity and fuel prices, because of the ongoing war between Russia and Ukraine and this has caused huge inflation.
“Because of the slowdown in demand from China and European countries, there has been an inventory of more than 1 lakh tonne of frozen fish in our cold storages,” said Fofandi. In Gujarat, there are over 170 units which process and export fish and 150 of these units are in Veraval.
Leading exporter Kenny Thomas said, “There is a 20% to 30% drop in the export and it is a tough year. The inventory of all exporters in Gujarat is full because of slow off-take from European countries and uncertain conditions in China. The exporters are holding the inventory hoping things will change.”
We also published the following articles recently
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Chinese Premier Li Qiang has pledged to deepen reforms, expand free trade zones, and relax market access for foreign investment in order to boost the country’s lackluster economy. He made these remarks at the opening of the China International Import Expo in Shanghai, aiming to attract foreign businesses to invest in China. Despite China’s economy expanding at a 4.9% annual pace in the third quarter, slower than the previous quarter, economists argue that wider reforms are necessary to address long-term growth issues. Li also expressed China’s intention to join trade agreements such as the CPTPP and negotiate more high-standard free trade agreements.
Chinese Premier Li Qiang has pledged to deepen reforms, expand free trade zones, and relax market access for foreign investment in order to boost the country’s lackluster economy. He made these remarks at the opening of the China International Import Expo in Shanghai, aiming to attract foreign businesses to invest in China. Despite China’s economy expanding at a 4.9% annual pace in the third quarter, slower than the previous quarter, economists argue that wider reforms are necessary to address long-term growth issues. Li also expressed China’s intention to join trade agreements such as the CPTPP and negotiate more high-standard free trade agreements.
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The Maharashtra cabinet has approved the state’s first export incentive policy, with the aim of generating investments worth Rs 25,000 crores. The state plans to have a 22% share in India’s target of $1 trillion exports by 2030. The policy aims to double the value of the state’s exports to $150 billion and introduce 30 export infrastructure projects in the next five years. It is expected to benefit 5,000 MSMEs, create 40,000 job opportunities, and reduce regional disparity. Financial assistance will be provided for specific projects and industrial parks.
Waterways to help UP become export hub
The Uttar Pradesh Interstate Waterways Bill-2023 has been approved by the state cabinet, allowing for the establishment of a regulatory body for tourism and transport on the state’s rivers. The bill will be sent to the Assembly and is expected to become an act during the Winter Session. The authority will be responsible for promoting and regulating water transport and tourism, with the Chief Minister appointing the head and the state government appointing the vice chairperson. This move aims to boost water transport, tourism, and exports in Uttar Pradesh.
The Uttar Pradesh Interstate Waterways Bill-2023 has been approved by the state cabinet, allowing for the establishment of a regulatory body for tourism and transport on the state’s rivers. The bill will be sent to the Assembly and is expected to become an act during the Winter Session. The authority will be responsible for promoting and regulating water transport and tourism, with the Chief Minister appointing the head and the state government appointing the vice chairperson. This move aims to boost water transport, tourism, and exports in Uttar Pradesh.
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