The Indian shrimp industry is expected to have a low-yield harvest in the next few months as farmers limit stocking due to high input costs, limited demand and bad weather. The second main harvest of the year usually takes place in August and September. This year’s harvest, production is expected to be lower than usual.
The output of the second crop is estimated to be only 50% of that of the first crop. Whiteleg shrimp production in India is still falling after the end of the main season, according to Sheraz Anwar, CEO of seafood processing company Abad Fissher.
Mr. Durai Murugan, owner of Sea Gem Aqua Farms vannamei also believes that shrimp production in the upcoming harvest will be lower than usual. Many hatcheries experience a shortage of demand. Compared to last year, this year many hatcheries suffered losses due to insufficient demand. Another source said that currently only about 20% of shrimp farms in Andhra Pradesh state are active and the shortage of raw materials could repeat in the next few months.
Shrimp production in India in the 2nd season is expected to decrease significantly
The price of shrimp size 20 – 30/kg in India has decreased significantly compared to the beginning of the year. At the same time, the price difference between medium and large shrimp is also much different. Many households do not raise large-sized shrimp because of the lack of demand. Processing companies choose to raise shrimp size 40 – 70 shrimp/kg/kg. Especially, shrimp size 50-60 shrimp/kg is popular.
Shrimp farmers are blaming Ecuador’s offering in the US at too low a price, so the current market situation is very difficult when feed prices and other input costs are high. Coming to the winter crop, the supply of raw materials may decrease.
Sebastián Jacob, CEO of processing company Continental Seafoods, noted that demand from the US foodservice segment was “fairly good” but retail demand was weak. However, there is still hope that prices will increase due to a decrease in raw material supply after the early summer harvest. Buyers in the US are starting to place orders for the year-end festivals and shrimp prices tend to increase. Small size shrimp attract more market.
Jacob added that Chinese market demand has remained stable over the past two months. Recently, there are many orders from China for small shrimp. I think the demand of the Chinese market will increase strongly in the coming months. Especially in the period from September onwards, Chinese import companies start buying goods to prepare for the Lunar New Year. India’s reduction in prices for small size shrimp makes this segment more attractive to the Chinese market.
Flooding is affecting shrimp farming areas around the Godavari River region north of India’s main shrimp farming province, Andhra Pradesh. Diseases and high mortality rates make people harvest early when shrimps are at the size of 100-200 shrimps/kg.
EHP disease has devastated the Indian shrimp industry in recent years. This year, the shrimp mortality syndrome was really serious when the survival rate in many ponds decreased by 40 – 50%.
