Kerala’s Shrimp Export Sector Faces Crisis as Japan Cuts Imports Following U.S. Ban

Kerala’s fisheries sector is grappling with a severe crisis as Japan has followed the United States in reducing its import of shrimp, exacerbating the situation for local export firms. The cutback by Japanese companies has resulted in unsold inventory of previously imported shrimp, causing a sharp decline in new purchases from India.

Japan’s reduced imports are attributed to its ongoing economic recession, while the U.S. has imposed a ban on Indian shrimp imports due to concerns over sea turtle protection. This double blow has left Kerala’s export firms struggling to ship their stock, worsening the impact on the industry.

The crisis is compounded by further reductions in shrimp imports by countries like the UK and China, which is now buying shrimp only at reduced prices. The entire seafood export sector in Kerala is facing unprecedented difficulties, particularly during the peak shrimp season, with workers who rely on shrimp fishing being severely affected.

The price of Poovalan shrimp (brown shrimp), popular in European markets, has plummeted from INR 200-220 per kg to INR 65-80 per kg due to diminished export opportunities. All shrimp varieties have seen similar price declines.

Workers are forced to sell shrimp at significantly lower prices, resulting in widespread job losses. Fish processing factories in Kochi and Alappuzha, along with peeling sheds that employ many women, have shut down. Some export firms have even ceased operations.
Efforts to Address the U.S. Ban. Alex K. Ninan, Vice President of the Seafood Exporters Association of India, has highlighted ongoing government efforts to address the U.S. ban. He suggested equipping fishing boats with special devices designed to protect sea turtles as a possible solution.

Call for MPEDA Intervention
Zubair Palluruthy, President of the Seafood Processors Suppliers Association, stressed the urgent need for intervention from the Marine Products Export Development Authority (MPEDA) to support the thousands facing economic hardship.

Call for Government Action
Charles George, State President of the Kerala Fishermen’s Union, has called for immediate action from the state government to address the plight of thousands left unemployed in the fisheries sector despite having available shrimp resources.

Source: Matrubhumi