September 12, 2024
Optimism for India’s shrimp exports in 2024
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India’s aquaculture industry showed significant growth and development during the second quarter of 2024.
With the expansion of aquaculture activities, the country’s aquafeed market saw a surge in demand during the same period. The demand for low-cost feeds comes mainly from the fish farming and low-density shrimp farming sectors.
Shrimp farming, particularly of those focused on Litopenaeus vannamei and Penaeus monodon, continued to maintain its place in the Indian market. In the early months of the first quarter, while stockings were at lower levels, nearly 70% of ponds were later stocked by the end of the quarter.
The average export value per kilogramme of raw L. vannamei has shown a positive trend in Q1 but is still considerably below 2023. At the end of Q2, the farmgate price of shrimp fetched better prices.
In Q1, India’s shrimp export volumes rose slightly by 4% year-on-year. The country continues to depend significantly on the US and Canadian export markets, which absorbed a combined 46% of India’s raw L. vannamei exports, 23% of raw P. monodon exports, and 87% of value-added products in Q1.
India’s shrimp exports last year reached 712,914MT, slightly up from 2022. However, the total export value dropped from $5.5 billion to $4.9 billion.
Efforts to diversify export markets have been successful, with increased shipments to the Middle East and Southeast Asia. India has also reduced import duties on certain input products for shrimp in aquaculture production to benefit farmers and boost exports.
India, Ecuador, and Vietnam account for around two-thirds of global shrimp exports, while the United States, China, and Japan consume more than half of global produce.
In the past two fiscal years, Ecuador surpassed India to become the largest shrimp exporter, as the latter was supported by higher acreage, a favourable climate, and significant investments to improve the genetic quality of its brood stock.
Ecuador also possesses an advantage from its proximity to the US and the European Union as Asian exporters grappled with higher logistics costs amid container shortages.
As for Indian shrimp exporters, they will see their revenues grow by 8-10% this fiscal year as demand from key importing nations recovers.
Higher revenues and lower procurement costs will help exporters sustain an operating margin of around 7% for the fiscal period, despite supply chain disruptions and higher logistics costs due to geopolitical uncertainties.
– Dr. Dinesh Bhosale and Umakanth
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Publish date : 2024-09-11 17:48:00
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