Growth and Instability in Indian Frozen Scampi Export

Abstract

Giant freshwater prawn (Macrobrachium rosenbergii) or scampi is an important product in the Indian seafood export basket, the predominant form being frozen scampi. An analysis of the scampi export from India for the period 1995 to 2009 is attempted in this paper. The compound growth rates, market concentration and instability indices of the Indian scampi export were analyzed. The quantity and value of frozen scampi export from India increased by 67.22 and 117% respectively over the period, largely aided by the rapid growth of aquaculture. The study concentrates on major markets viz., Belgium, Canada, Germany, Japan, Netherlands, UAE, USA and UK since more than 80% of the scampi exports from India were to these markets. Results showed low and negative growth of Indian scampi export in terms of quantity, value and unit value for the period of study. There was evidence of high market concentration of Indian scampi export to various countries. High degree of instability in Indian scampi export was revealed using Absolute difference method and Coppock’s instability index (CII). The study revealed that India’s scampi export was concentrated mainly to those countries, which is either less desirable (low growth & high risk) or least desirable (low growth & low risk) category which in turn affects the economic growth of the country. The causes for the export instability index have also been discussed.