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Tuna exporters seek more concessions

by Elmo Leonard

Sri Lanka, which exported 258,007 tonnes of tuna valued at $179.3 million (Rs 171.6 billion) in 2002, is in critical danger of losing over 60 per cent of its export supply coming from the Maldives, consequent to the commissioning of two privately-owned tuna processing plants in the Maldivian archipelago.

The Maldivian tuna plants are capable of processing tuna to meet market specifications of the European Union and the United States. For years, Sri Lanka's exports of tuna comprising Yellow Fin and the Big Eye varieties, have been largely obtained from the Maldivian catch.

Most of Sri Lanka's tuna exports reach the European Union. In 2001, Sri Lanka's foreign trade in tuna totalled $205.1 million and in 2000, $586.8 million.

Sri Lanka's tuna exports are air freighted and fetches a minimum of $15 per kilogram, retail, in European supermarkets, the export trade said. The biggest importers of tuna from Sri Lanka in 2002 in descending order were the United Kingdom, Germany, Lebanon, the Netherlands, Japan, Belgium, Sweden, United States and Switzerland.

In the late 1990s, the Maldives commissioned a large tuna canning industry which cannot meet import demand from Europe and the United States, a Maldivian exporter said in Colombo recently. Local tuna exporters pointed out that the price of fresh tuna in European markets is 10 times higher than that of canned tuna.

Sri Lanka's largest exporter of tuna, the Tess group of companies, does not depend on the Maldives for its export supply. The Tess group obtains stocks of tuna from 40 fishing vessels, belonging to seven foreign tuna processing companies from countries such as China, Taiwan and Indonesia, operating under joint ventures here. Tess also owns two (a 33 and a 38 metre length) reconditioned Japanese fishing craft, its CEO, Roshan Fernando said.

With the monsoon in force for the past four months, the tuna catch by Sri Lankan-owned vessels is near zero. This is because 95 per cent of Sri Lankan-owned vessels which used to catch tuna are the gill-net type; they lack the technology to fish in deep sea waters. The Tess group and foreign vessels use longliners as opposed to gill-nets. Longliners are fitted with fishing (long)lines from 30 to 70 kilometres in length which have many attached sublimes bearing 800 to 1,500 hooks each. Reputed international buyers do not accept gill-net caught tuna as they tend to get crushed by this method.

The Tess group proposes that the 33 per cent duty on imports of tuna fishing vessels be abolished in this year's budget. Smaller-scale entrepreneurs could then buy a reconditioned 20 metre tuna craft with attached longliners for $105,263. This would also bring Sri Lanka into international focus in the fishing craft industry. It would heighten international attention on local companies which manufacture fishing craft for foreign buyers, even among First World countries.

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