A Principal Component Analysis of the Problems Faced by Seafood Processing Export Firms in Kerala

Abstract

The significance of the seafood processing export units has been undisputed owing to its contribution towards employment of skilled and semi-skilled workers, and its potential to generate foreign exchange earnings through export. The State of Kerala has been contributing a significant portion towards the Indian export of seafood products both in terms of value and quantity. Yet, there are evidences that the contribution has a staggered trend over the years, and it is declining. Studies in the past have highlighted the existence of various problems that are faced by the sea food processing export firms. These problems include raw material prices, quality of products, export regulations etc. The present study is an attempt to identify the specific nature of these problems through Principal Component Analysis. It is found that the problems faced can be segregated into four major components, namely, Labour Problems, Technical and Training Problems, Raw Material Problems, and Power and Other Inputs Problems.