Vannamei Shrimp Prices Surge in India Amid Supply Crunch and Global Market Shifts

by Fishery News

The farmgate prices of Vannamei shrimp in Andhra Pradesh, India’s largest shrimp-producing state, have spiked due to limited supplies and rising demand. Prices for 30-40 count per kilogram head-on shell shrimp have increased by ₹50 per kilogram, bringing the rate to approximately $595 per metric ton. Andhra Pradesh, which accounts for over 80% of India’s total shrimp production, has been grappling with disruptions from the “low season” between the first and second crop of the year.

Severe floods in early September further compounded the supply crunch by damaging farms that had recently completed seeding for the second crop. Market observers anticipate that the true impact of these floods will become more apparent when the second crop harvest starts in November.

Producers remain optimistic, hoping the current price rally will extend into the upcoming harvest, fueled by renewed buying interest from international markets. US retail buyers have already begun to re-enter the market, following the temporary suspension of a port workers’ strike on the East Coast, which is set to last until mid-January. According to exporters, the festive season has also prompted retailers to stock up in anticipation of higher demand.

The US continues to be India’s largest shrimp market, with peeled and deveined shrimp leading trade volumes. Additionally, farmgate prices for smaller shrimp sizes have consistently risen since June. The price of 50-60 count per kilogram head-on shell shrimp in Andhra Pradesh increased from ₹250 per kilogram ($2,993 per ton) in June to ₹335 per kilogram ($3,989 per ton) by mid-October.

China has also contributed to the upward trend, with increased demand for smaller headless shell-on (HLSO) shrimp. While China’s overall shrimp imports have declined in 2024, India’s shrimp exports to China surged by 11.19% year-on-year from January to July, underscoring a shift in demand toward smaller shrimp varieties.

Domestically, demand for smaller shrimp is growing, but the absence of a robust local shrimp market leaves Indian producers heavily dependent on international buyers to sustain prices. Meanwhile, Ecuador, the world’s largest shrimp producer, faces its own challenges with rising prices. Energy rationing in Ecuador has tightened supply, threatening to reduce shrimp export revenues by $75 million per month, as per the Ecuadorian Aquaculture Association (CNA). The energy crisis has disrupted not only shrimp farming but also associated industries like feed mills and processing plants.

Industry experts predict that Ecuador’s supply constraints could prompt global buyers to shift focus toward India, especially for value-added shrimp products, potentially driving further price increases in the Indian market.

 

 

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