Financial restrictions hit seafood exporters
2016-11-16 11:27:56   copyfrom:    hits:

Shrimp processing plant (Photo: Stock File)INDIAWednesday, November 16, 2016,01:20 (GMT + 9)Seafood exporters in In
 

Shrimp processing plant. (Photo: Stock File)

 

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Wednesday, November 16, 2016, 01:20 (GMT + 9)

 

Seafood exporters in India are concerned about the likelihood of having to face the cancellation of orders as a result of the demonetisation of high value currency notes.

The financial initiative, which forms part of the anti-corruption measures adopted by the Government, hurdled exporters’ activities as they are finding it extremely difficult to make the materials available in time at ports for shipments, The Business Standard reported.

"Exporters are unable to make the shipments on time as they are running out of cash to make on road expenses of trucks carrying the cargo to the ports,” pointed out Ramesh Mohapatra, chairman of Magnum Seafood Ltd and president of Utkal Chamber of Commerce and Industry.

The executive explained that there are personal expenses of the drivers, fuelling, road taxes, loading and unloading costs to be met in cash only.

Those involved in the seafood sector also stated that the government's move to limit the withdrawal amount and cash transactions will also delay payments to workers.

"The problems will be there temporarily on payment of wages of labourers. We will make the payments to the contractors by cheques. The point is that the issue of cash crunch should be sorted at the earliest, else it will be problematic," commented Tara Ranjan Patnaik , chairman of Falcon Marine Exports Ltd, a leading exporter in the country.

For his part, Sea Food Exporters Association of India (SEAI)-Odisha Ajay Dash stressed that the Union government is taking measures whenever and wherever required and accordingly amending the restrictions.

According to SEAI's statistics, Indian seafood exports are pegged at USD 4.7 billion, with the US and the South East Asia region being the major importers. Frozen shrimp is the major export item, followed by frozen fish.

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