Indian Shrimp Exports Set to Nearly Double to $7 Bn by 2022: CRISIL | CORPORATE ETHOS

Indian Shrimp Exports Set to Nearly Double to $7 Bn by 2022: CRISIL

By: | December 13, 2017
shrimp exports

Dec 13: CRISIL, a global analytical company providing ratings, research, and risk and policy advisory services, on Wednesday said that shrimp exports from India will nearly double to $7 billion by 2022, driven by strong demand, high quality, improved product mix, and an increase in aquaculture area in Andhra Pradesh, Gujarat, Odisha and West Bengal – even as its Asian rivals battle structural issues and rising domestic consumption.

In fiscal 2016, India became the biggest exporter of shrimps, pipping Vietnam by just $100 million. A year on, the country has decisively pulled ahead, racking up $3.8 billion exports even as Vietnam flatlined at ~$3 billion.

 Since 2010, shrimp production in Asia has been severely affected by diseases, floods, labour issues, and tightening environmental norms. Due to these reasons, major exporters like Vietnam, Thailand, and China marked huge decline in their productions. In addition, these countries also faced significant quality challenges.

On the other hand, Indian exporters have in the past few years emphasised on lower-density shrimp farms to control diseases, while maintaining quality across the value chain. What also helped was the use of resilient specific pathogen free (SPF) brood-stock imported from the United States. Consequently, between fiscal 2012 and 2017, India’s shrimp production doubled, and helped it grab the opportunity created by lower supplies from Asia.

Though the rival nations are trying to fix their problems and recover slowly, India’s primacy in shrimp exports is unlikely to be seriously challenged over the medium term, says the agency.

Additionally, larger Indian exporters are expanding infrastructure to cater to increasing demand for value-added products from big global retail chains and restaurants.

“Therefore, we foresee value-added exports also rising from the current 15% levels significantly,” it said.

“Going forward, how the rupee moves and protectionist tendencies and increasing stringency towards quality, among importer nations would be the key monitorables,” the agency added.