3 reasons why the shrimp industry has slumped lately

A background

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.

But, good times don’t last long

The industry has been facing a slump lately. Let’s find out why.

#1 COVID-19

A lack of demand and supply chain issues led the industry to suffer a massive blow of $1.5 billion due to the pandemic.

#2 Inflating feed costs

Owing to global scarcity, shrimp feed costs have surged by over 40%, affecting shrimp produce and profit margins for farmers.

#3 US favours Ecuador over India

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%.

Is there a recovery in sight?

Recognising this gap, major companies like Avanti Feeds are pivoting towards producing value-added shrimp products that promise higher profit margins.

The future remains uncertain

The evolving trade dynamics between China and Ecuador, marked by the signing of free trade agreements, loom as a potential storm on the horizon.

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