December 03, 2019|
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India is the second largest aquaculture producer in the world after China. China and India along with Indonesia, Vietnam and Thailand form nearly 80% of the world’s total aquaculture production. The country’s aquaculture production exceeds USD 10 billion of which about 80% is exported. India’s aquaculture industry is one of the major forex earners for the country. Shrimps form about 70% of India’s aquaculture market. Cuttlefish, frozen squids and dried fish form the other products in India’s basket of aquaculture production. India’s shrimp exports have increased by about 20% since FY 2010.
The US is the largest market for India’s shrimp exports accounting for about 40% of the country’s shrimp exports. South-east Asia and the EU are the other large markets for Indian shrimps.
India has numerous advantages in production of shrimps such as its large coastline with salty water that is favourable for shrimp production and conducive weather.
Shrimp prices fell during mid-2018 as a result of overstocking in the US, the largest market for shrimps. As a result, Indian shrimp farmers shifted from shrimp production to other crops. Since early-2019s, US imports of shrimps have been on the rise. With a combination of lower production in India and increase in demand, shrimp prices have been on the rise.
India currently faces an advantage with disease-free production and low labour costs as against other exporters facing diseases in their shrimp production and high labour costs. By 2022, India is expected to achieve production of about 1 million tonnes growing at a CAGR of more than 10%. Shrimp consumption has been on the rise globally. India is one of the top exporting countries and has also increased its share in the global markets from about 16% in 2010 to more than 20% currently.
Shrimp feed is one of the largest inputs in the aquaculture industry forming more than 60% of input costs. The fortunes of this industry are linked to the overall aquaculture industry. This segment is expected to grow in sync with the overall aquaculture industry.
India is on the growth path to increasing its market share of shrimp value-added products, which command a higher margin. This segment requires specialized skills and different ingredients. Exports of value-added products are expected to grow at about 40% CAGR, going forward.
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