AP loses Rs 100crs Tuna exports to Kerala port

By SNV Sudhir

Visakhapatnam, June 25, 2014:  While every rupee of revenue is important at the time when the state is split and AP has got deficit budget, state is losing indirect revenue in the form of various local taxes from Vizag port as it is losing around Rs 100 crs of business every month to Kerala’s Cochin port due to lack of value addition facilities to the seafood that is exported to Japan and other Far East countries.

While at present around 20,000 tonnes of various seafood like various varieties of shrimp and tuna are exported from Vizag port to European countries and Japan every month, around an additional 10,000 tonnes worth Rs 100 cr catch is going from Vizag coast to Cochin port for export, where value addition facilities to seafood, especially, tuna are available.

Interestingly the seafood caught on east coast (Vizag and Odisha coast) is being exported to Far East from west coast (Cochin port), pinning holes in the pockets of exporters as it is considered as detour. While, the state gets revenue through various taxes on seafood biz, it also provides local employment in allied industries.

Products that have been modified by cut shape, coating, preparation or packaging to improve handling, presentation, profitability and convenience is called value addition, for which it needs assistance from the concerned government agencies for expertise.

“We found that lack of facilities for value addition here in Vizag half the present cargo which is being exported from here is going to Cochin where such facilities are available. On an average at least 1,000 containers are sent to various countries from here to many countries like Japam, Taiwan and of Europe. We will be very soon taking up the issue of establishment of facilities for value addition, with all the stakeholders and the government. As per our estimates around 500 such containers of Tuna of Vizag coast are going from Cochin port,” said an official of Vizag Container Terminal.

Value addition is primarily done to Tuna as it takes minimum 4 days to come to shore after the deep sea fishing. Japanese and Taiwanese either like a fresh Tuna, which is flown in a few hours after it was caught, or a value added fish.

 A tonne of fresh Tuna which is considered first quality is priced at a bomb, the tuna which is being caught on Vizag coast and exported through Cochin Port, is considered third grade and costs around  Rs 1 lakh per tonne. Around 500 tonnes of such tuna is going to Cochin from Vizag.

“Here in Vizag the tuna long line fishing is done individually and that’s the reason why the fish caught in the high seas takes at least 4 days to come to the shore, whereas Japanese and Taiwanese like fresh fish that has to be flown within hours it is caught. Or else value addition should be done to the 5 day old Tuna to export it to those countries. To send the tuna as and when it is caught we need to adapt  group fishing.  We neither facilities here in Vizag to send fresh Tuna or the one with value addition,” observed, Dolphin Boat Owners Welfare Association, president, Ch Satyanarayan Murthy.

Among the shrimp that is exported from Vizag, 80 pc is headless pink brown variety, which is priced at Rs 4.5 to 5 lakhs and the premium variety Tiger prawns are exported at Rs 10 to 12 lakhs per tonne. White and flower prawn is exported at Rs 5 lakh per tonne.