Philippines’ tuna and canning companies are eyeing expansion in India, which offers fishing areas that could yield up to additional 213,000 metric tons (MT) of tuna annually.
During the India-Philippines Business Conference on Marine Fisheries and Aquaculture, Frabelle Fishing President Francisco Tiu Laurel Jr. said India has the potential for additional yield of 213,000 MT annually and that “this is worth looking into”.
Laurel said the expansion of Philippines companies could either be through the establishment of processing facilities or through the importation of raw materials to supply their existing facilities.
Right now, Philippine fishing and canning companies also have canneries in Papua New Guinea, Indonesia, and Vietnam.
Tuna is currently one of the Philippines’ largest seafood export, with a yearly value of $350 to $400 million.
Some of the big players in the industry are Alliance Select Food International, Inc., Celebes Canning Corporation, Century Pacific Food, Inc., General Tuna Corporation, Philbest Canning Corporation, Ocean Canning Corporation, and Seatrade Canning Corporation.
These companies export most, or around 90 percent, of their total production to other countries like European Union, United States, Middle East, Japan, and Australia, while only 8 to 11 percent go to the domestic market.
“The tuna fleet is still willing to expand where they will be welcomed to fish. in India, if possible. As long as the Philippines fleet are allowed to fish there,” Laurel further said.
For his part, Francisco Buencamino, executive director of Tuna Canners Association of the Philippines, said it may be advantageous for the Philippines to just import India’s raw tuna production and process these locally. This is because the Philippines has preferential duty privileges to the European Union in tuna export.
During the business conference, Cherian Kurian, vice president of HIC-ABF Special Foods, said this is a perfect time to invest in the tuna sector of India because some of their fishing areas are still largely untapped.
Based in Kerala, HIC-ABF Special Foods Pvt Ltd produces value-added and ready-to-eat food products since 2001.
Kurian said India’s oceanic tuna resource potential within its exclusive economic zone reaches 2.13 million MT, with yellowfin taking up 54 percent and skipjack 40 percent of total yield.
“We understand that the Philippines is huge in the area of canning, and there are a lot of the Philippines companies willing to invest in India,” Kurian said.
“It's the right time to look at the possibility of investing in India,” he added.
He also emphasized that India doesn't have trade issues with the Philippines, which will make it easier for investment opportunities to push through.
Right now, the Philippines and India are looking at opportunities for trade cooperation on marine fishery and aquaculture.
“It will be the start of a long process of linking to raise productivity,” said Indian Ambassador to the Philippines Shambhu S. Kumaran during the aforementioned business conference.
“The blue economy is going to be one of the biggest driving forces in the world. It's important for the Philippines and India to work together. We have already made a lot of progress in India, creating an agriculture export economy,” he added.
For his part, Philippine Ambassador to India Ramon Bagatsing, Jr. said a technical working group (TWG) is being formed to explore and formalize potential technical cooperation on fisheries between the Philippines and India.
Coincidentally, on Thursday, the Federation of Free Farmers (FFF) said the recent decision of the Philippine government to reduce the tariffs on rice imports from non-ASEAN countries, including India, may have something to do with the latter's intention to please the Indian government. In a statement, FFF assailed the Philippine government for selling out the interests of three million rice farmers in exchange for increased Indian investments in the country.
Earlier in the year, Department of Trade and Industry (DTI) Secretary Ramon Lopez was quoted to have offered the tariff reduction as a “preliminary gesture to advance the proposed preferential trade agreement” between India and the Philippines. He reportedly added that “the adjustment of rice tariff could set the tone on the discussions of potential collaboration and cooperation on a wider range of initiatives”.
The FFF noted that the tariff concession to India, which was later expanded to include other non-ASEAN countries, was made without any meaningful consultation with farmers and other affected stakeholders. “There is really no need to encourage more rice imports from India and other countries through lower tariffs. The only beneficiaries here will be the importers who will just pocket the reduction in their import costs," FFF National Manager Raul Montemayor said.