The shrimp industry holds a sizable portion in India’s seafood market. Of the total $8 billion seafood exports in FY23, it accounted for a whooping 70% share.
The industry has been facing a slump lately. Let’s find out why.
A lack of demand and supply chain issues led the industry to suffer a massive blow of $1.5 billion due to the pandemic.
Owing to global scarcity, shrimp feed costs have surged by over 40%, affecting shrimp produce and profit margins for farmers.
As freight costs increased post-Covid, the US looked to Ecuador for importing shrimp. This caused a dip in India’s shrimp exports to the US by 12%.
Recognising this gap, major companies like Avanti Feeds are pivoting towards producing value-added shrimp products that promise higher profit margins.
The evolving trade dynamics between China and Ecuador, marked by the signing of free trade agreements, loom as a potential storm on the horizon.