Decline in India’s shrimp exports makes them cheaper by 30% in domestic market

A sharp decline in India’s shrimp exports to China, the second largest buyer of Indian shrimps after the USA, has made shrimps cheaper in domestic markets by 30-40 percent since March.

More than 1000 containers of shrimp have been estimated to be stranded at Chinese ports as the country raised concerns about following covid protocol in the packaging of the shrimp, waiting for clearance.

“China was a very large market for the small sized shrimps weighing 10 grams to 17 grams. Now, as the exports to China are facing problems, the demand for these sizes is soft. The farm gate prices of shrimp have declined by about 14% since March,” said Ramakanth Akula, CEO, The Waterbase Limited.

Jagdish Fofandi, president, Seafood Exporters’ Association said, “We have advised exporters to strictly follow the covid protocol established by Apeda (Agricultural and Processed Foods Development Authority). While the country is trying to resolve the issue through diplomatic channels, we have also advised exporters to avoid exporting to China for some time.”

Fall in prices of shrimp coupled with increased cost of production due to record high prices of shrimp feed ingredient soyabean, has forced the small players to shut operations. Gulrez Alam, secretary, Shrimp Feed Millers’ Association said “Shrimp industry has been suffering due to lower exports, low demand in India due to fall in out of home consumption and increase in cost of shrimp feed by about 40%.”

Exporters have started seeing the impact of problems in Chinese market on the prices in other countries. “Of late, importers from other countries have started bargaining about price,” said a shrimp exporter, who did not wish to be identified.

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