After five consecutive weeks of gains, can the Indian white shrimp market remain high?

Status of Indian White Shrimp Market 

Indian white shrimp farm prices have lost momentum after rising to a four-month high, according to UCN data platform.  This change is mainly influenced by multiple factors.  First, the price of 60 head white shrimp in Andhra Pradesh, India's largest white shrimp producing area, stabilized at 295 Indian rupees/kg (about 3.52 US dollars/kg), indicating that the market supply and demand reached a temporary balance.  However, the information provided by different data providers varies slightly, such as AquaExchange data showing that the price of 40 white shrimp in Nairobi is still rising, which may be related to factors such as regional farming costs, production and market acceptance. 

Indian white shrimp prices stabilized, partly thanks to strong demand in the United States market.  From January to May 2024, India supplied approximately 110,580 metric tons of white shrimp to the United States, accounting for nearly 40 percent of total shrimp imports to the United States.  This data not only highlights India's important position in the global white shrimp market, but also reflects the high dependence of the US market on Indian white shrimp.  However, high freight costs and uncertainty about trade tariffs cast a shadow over the export prospects of Indian white shrimp. 

Global Market Comparison 

White shrimp prices in other major exporting countries showed a different trend compared with the stabilization of the Indian white shrimp market.  Raw material prices in Indonesia's East Java region remained high after rising, while prices in Ecuador were relatively stable.  Prices in Vietnam and Indonesia fell again after rising in each of these regions, indicating the volatility of these markets.  White shrimp prices are rising inThailand, possibly linked to the recovery of its domestic aquaculture industry and increased export demand. 

It is worth noting that the price fluctuation of global white shrimp market is not only affected by the relationship between supply and demand, but also affected by many factors such as international trade situation, exchange rate fluctuation and production cost.  For example, strong demand in the United States market has driven up the price of Indian white shrimp, but high freight costs and uncertainty about trade tariffs may inhibit export growth. 

Forecast of future trends 

Looking ahead, the Indian white shrimp market trend will be affected by a combination of factors.  On the one hand, with the recovery of the global economy and the increase of consumer demand, the market demand for aquatic products such as white shrimp is expected to grow further.  On the other hand, factors such as rising farming costs, uncertainty in the international trade situation and fluctuations in global supply chains may also adversely affect white shrimp prices.