Indian shrimp exports from growth to turnaround, prices continue to climb

In recent years, India has been an important country in global shrimp exports, especially in July 2024, the export volume of Penaeus vannamei reached 70,070 metric tons, an increase of 5% year-on-year, and the annual total export volume also achieved a year-on-year increase of 4%. 

However, after entering August, India's shrimp export market has taken a turn.  Although India has been a major supplier of shrimp to the United States, August export data showed a significant decline in exports to the United States, down 14 per cent in both volume and value compared with July.  This change resulted in a year-on-year decline in both the volume and value of Indian shrimp exports to the United States in the first eight months of this year. 

At the same time, the price of Indian white shrimp has recently shown an upward trend.  Shrimp prices across India continued to climb especially in Week 41 (October 7 - 13), with farm shipment prices for most specifications rising by INR 5 per kg compared to last week.  Behind this price rise, there are multiple factors driving. 

On the one hand, strong demand from the United States has driven up Indian shrimp prices.  On the other hand, domestic production constraints also seem to be driving up prices.  India's shrimp production has recently declined due to disease outbreaks and flooding, leading to an imbalance between supply and demand in the market.  Exporters scrambled to snap up limited supplies of raw materials, adding to the price hikes.  In addition, a surge in demand for larger-sized shrimp has pushed farmers to raise prices. 

In Andhra Pradesh, for example, the price of 60-size shrimp rose to 330 Indian rupees per kilogram at the beginning of the week, up 1.5% from the previous week.  At the same time, the price of 70, 50 and 40 size shrimp in the state has also increased by 5 Indian rupees per kilogram.  This upward price trend is not limited to Andhra Pradesh but is widespread across the country. 

Faced with the challenge of rising prices, some exporters and processors are responding by improving efficiency in value-added packaging.  They hope to offset the cost pressure of rising raw material prices by increasing the added value of their products, and industry insiders generally believe that the market may last until the end of December.