'Cashew, seafood biz declines 25%'

KOCHI: Exporters from Kerala have started feeling the pinch of global financial meltdown with containers carrying cashewnuts, seafood and a host of other items starting to come back after being rejected by buyers overseas.
The export scenario is so bad that the Dubai Port, which runs the container terminal at Kochi Port, has already started witnessing a huge reduction in the export volume.
Sources said, till October this year, Dubai Port had been registering a growth of 16% compared to last year. However, ever since the meltdown melee broke out, export volume has come down by 22 to 25%. "At this rate, it's difficult to maintain 16% growth rate,'' a source said.
"In fact, buyers are re-negotiating prices for which the LC is opened when the shipment is in the mid-sea'' a cashewnut exporter said. Sources said nearly 150 containers of cashewnuts have come back to Kochi port after being rejected.
The exporter said off-take of cashews is usually huge in US and Europe on the eve of Christmas and New Year. During this season, over 350 cashew containers reach New York, Norfolk, Charleston, Savannah, Baltimore ports. Germany, the Netherlands, UK, Belgium, Italy and Spain put together also consume an equal quantity. Each container contains Rs 40 lakh worth of cashews.
"We didn't expect the meltdown. So, for the Christmas and New Year season, we'd bought cashews by paying a huge price. Now, we're doomed,'' said an exporter.
"Suddenly, our material is getting rejected. People have no money to splurge,'' said another exporter.
The problem faced by seafood exporters is more complicated than their cashewnut counterparts. Seafood has to be continuously refrigerated even after reaching the port. At the destination, electricity is free for the first two days. But, from third day, the port will penalize the carrier, who in turn will pass it onto the consignee.
Sources said, seafood containers are stranded at different ports. As buyers are busy re-negotiating prices, electricity tariff is mounting steadily. In fact, a carrier here is flooded with mails from seafood exporters requesting for waiver of penal electricity charges.