The recent floods in Gir Somnath and Junagadh districts have caused a loss of around Rs 500 crore to the seafood industry in the region. An initial estimate says at least 400 tonnes of frozen fish got contaminated by the flood waters and are not fit for human consumption.
Veraval is the hub of seafood processing in Gujarat as fish from the entire state, including south Gujarat, Porbandar, Mangrol, Jafrabad, Okha and Diu, come here for processing. Around 100 units in Veraval GIDC and its peripheral area process fish. The state is a major producer of seafood and it contributes around 10% of India’s seafood export.
The processed fish is stored and transported in minus 18 degrees Celsius. When it rained heavily in July last week, the Veraval GIDC area got flooded and the flood waters entered the fish processing units. The water level was so high that SUVs were found under rain water.
Seafood Exporters Association of India (SEAI) president Jagdish Fofandi said, “A total of 400 tonnes of frozen fish got contaminated and the total damage to the frozen fish units in Veraval alone is estimated to be Rs 500 crore, including the damage to the plant and machinery.”
He said the machinery is now required to be repaired or replaced and it will take one more month before the full scale operation of fish processing starts. The new fishing season starts from August 10 but most of the exporters are not in position to buy new stock in the first month of the new season.
Leading fish exporter of Veraval, Kenny Thomas, said majority of the fish processing units suffered huge loss. When the warm water entered the cold room, it increased the temperature of the cold room and the seafood not contaminated by water got spoiled because of the heat in the environment. There was also damage to machineries.
“We need time to bring back the factories to the hygienic standards by removing all debris and there will be one- month delay in the season,” said Thomas.
Exporters say the flood has created a double whammy situation for them. Because of high inflation in Europe, the export had got affected. In May when the fishing season ended, the exporters had 25% more inventory compared to previous year and that stock got contaminated in the flood.
According to insurance company norms, the industry owners have to maintain the status co till the damage survey is completed. But the survey completion took time time as flood had caused damage in many areas.