According to trade sources, Indian aquaculture production is estimated to touch a record 7 lakh tonne during the current fiscal and reach 1 million tonne by 2020.
Indian shrimp production is estimated to increase by 10% in 2018, provided the climate does not create major problems, according to a report by Globefish, a division of Food and Agriculture Organisation (FAO). It said Indian shrimp exports to the US rose by 39% to touch 2,14,400 tonne in 2017 and the demand is expected to remain robust. The decrease in the anti-dumping tariff on Indian shrimp and its increased market acceptance led to a significant increase in shrimp supply from India and the average wholesale price of Indian shell-on vannamei was 6-10% higher than the Ecuadorian product.
According to trade sources, Indian aquaculture production is estimated to touch a record 7 lakh tonne during the current fiscal and reach 1 million tonne by 2020. However, entry of new players and countries in the supply chain has led to a glut in the market with shrimp prices in free fall. Some of the Indian farmers have not even seeded their farms after incurring huge losses in the first quarter harvest.
Regarding global supply of farmed shrimps, the FAO report said that the global production of farmed shrimp in 2017 was estimated between 2.9–3.5 million tonne. Nearly 75-80% of the production originated in Asia-Pacific.
On the demand side, there was a change in market direction from West to East, where China played a strong role in 2017. “Local demand in many producing countries was also good and at strong prices. An estimated 2.3 million tonne of shrimp and prawn were imported in the top seven global markets in 2017, approximately 15% more than in 2016. Demand in East Asia was stronger in 2017, attracting large volumes of supplies worldwide,” the report said.
Interestingly, despite increased production of farmed shrimp, prices in the international trade remained stable throughout 2017 and domestic prices remained higher than export prices. According to FAO, in India, 100 pieces per kg of vannamei was sold at $3.9 per kg in the fresh market. Regarding the outlook for 2018, the report says that a positive stock market will keep demand on the rise in the US, while China is likely to import more from India as it cracks down on illegal import from Vietnam. Major concern remains the likely El Nino in 2018 that may cause extreme weather such as drought and heavy rain, which are harmful to the aquaculture sector.