Addressing a number of challenges faced by the Sri Lankan shrimp export industry, the Ministry of Fisheries and Aquatic Resources has introduced a new and comprehensive Standard Operating Procedure (SOP) for shrimp re-exportation.
This aims to further strengthen the shrimp export sector, which earns a large amount of foreign exchange for the Sri Lankan economy.
Although there is a huge demand for Sri Lankan shrimp in the foreign market, there has been a recent increase in domestic consumption (specially with the development of tourism) and a certain decrease in domestic production. The Government has permitted to import foreign prawns and to re-export them after value addition during the last few years for maintaining the export demand.
However, this process has raised various concerns and fears among local shrimp farmers. They also expressed views that their demand would be affected if foreign shrimp enter to the local market and there could be problems in export trade of Sri Lanka due to the risk of disease transmission and export restrictions in some countries. Furthermore, it was felt that it would not be appropriate to export shrimp imported from abroad as "Sri Lankan products".
Considering all these points, the Ministry appointed a special committee and prepared this new SOP with the participation of relevant government institutions (Department of Fisheries and Aquatic Resources, NARA, Aquaculture Development Authority, Department of Animal Production and Health, Export Development Board, Board of Investment, Department of Commerce) as well as stakeholders including members of the Aquaculture Alliance and exporters.
Key elements of the new SOP:
Import restrictions: Only frozen headless shrimp can be imported for re-exportation.
Recommendations on the country of origin: The import of shrimp from countries with trade problems or restrictions is prohibited, in accordance with the recommendations of the Department of Commerce.
Evaluation of Local Products: Import recommendations are made only after the Aquaculture Development Authority evaluates the data of shrimp farms and production information of the next three months
Health and Antibiotic Certificates: Health and antibiotic certificates from the relevant authorities of the importing country are mandatory to minimize the risk of disease transmission.
Value Addition: At least 25% of value addition of the imported shrimp stock must be done in Sri Lanka and thereby local employment opportunities and value can be increased.
Correct Labeling: Shrimp that is re-exported must be clearly marked as “Other Origin Shrimp, Processed in Sri Lanka” and cannot be presented as a product of Sri Lanka.
Mixing is Prohibited: Mixing of foreign shrimp with local shrimp during the processing is completely prohibited.
Storage Restrictions: Storage and processing facilities cannot be located in the vicinity of local shrimp farms.
Environmental Regulations: The discharge of wastewater and waste should be in accordance with the recommendations of the Central Environmental Authority.
Export Ratio: 75% of the imported shrimp must be re-exported, and only companies that meet this condition will be granted re-import permits in the future.
It is expected that this new standard operating procedure will resolve all the mutual fears and problems in the sector and provide a sustainable and bright future for the shrimp industry in Sri Lanka.
The video of the explanation of Additional Secretary (Fisheries Resources Management) Dhammika Ranatunga on this can be downloaded from the link below
