Rajkot, India: The ongoing economic slowdown in China and decreased demand from the European market have taken a toll on fish exports from Gujarat, leading to an alarming inventory of frozen fish exceeding 1 lakh tonne. This poses a significant challenge for exporters in the region.
Gujarat typically exports seafood valued at approximately Rs 5,000 crore annually. Of this, seafood worth around Rs 2,500 crore is sent to China, constituting 50% of the total exports. However, exporters report a decline of 20% to 25% in exports to China in the current financial year.
Jagdish Fofandi, president of the All India Sea Food Exporters Association, highlighted the impact of China’s economic conditions on the demand for Gujarat’s coastal fish. He noted a decrease in restaurant-goers in China due to saving habits, affecting the demand for the popular fish. The slowdown in China’s growth rate in 2023-24 has led to high unemployment, further impacting seafood exports from Gujarat.
In addition to the China slump, the European market, which accounts for approximately 30% of Gujarat’s total seafood exports, is also witnessing reduced demand. High-end fish varieties like cuttlefish, pomfret, lobster, and jumbo shrimp, primarily destined for Europe, are affected by the European market’s struggles with soaring energy prices caused by the Russia-Ukraine conflict.
“The slowdown in demand from China and European countries has resulted in an inventory of more than 1 lakh tonne of frozen fish in our cold storages,” remarked Fofandi. Gujarat houses over 170 units involved in fish processing and export, with 150 of them located in Veraval. The overall export has seen a 20% to 30% decline, creating a challenging year for the industry. Exporters are currently holding onto their inventories, hopeful for improved conditions in the future.