The worst seems to be in the past as far as shrimp exports are concerned with a recovery in US demand. Seafood exporters foresee a further movement in prices, thanks to the impending Christmas season, which could accelerate the demand.

D Ramaraj, President, All India Shrimp Hatcheries Association, said that the farm gate price had shown an upward trend on account of the rupee’s depreciation and depleting inventory, especially in the 60pieces/kg and below segment. The current farm gate price offered is ₹230/kg for 100 pieces/kg and ₹460/kg for 30 pieces/kg. The price should continue to be firm and could increase till March due to these factors.

“Our main market is the US and there is a strong demand despite the available stocks in supermarkets there. When there was a price drop in Q1, many aquaculture farmers found the Vanammei species cultivation unviable and this has led to a delay in seeding in many farms on the East Coast for the second crop,” a leading seafood exporter in Kochi told BusinessLine .

Now, farmers have started re-seeding with the prices moving up. “We should be back on track. The only thing is that the second crop was late, but it is possible to reap the yield before November. It is early to say on the quantity of exports, as it depends on the second crop”, he added.

Though the rising price trend has enthused farmers, Ramraj pointed out that they are very cautious and stocking less. There have been sporadic outbreaks of white spot disease and farmers are worried about the EHP infections with which several farms were affected in the summer crop. The sale of seed from hatcheries has slightly picked up in mid September.

“Overall farmers are approaching the second crop cautiously due to perceived risks in production. With Gujarat, West Bengal and Odisha out of production, approximately 40 per cent of the farms would be stocked in the second crop. Being a cooler season, the output is expected to be less than normal. There could be shortage of raw material for the plants which could make the farm gate price go up further,” Ramraj added.

Milestone crossed

India’s seafood exports in FY18 crossed the $7 billion mark with frozen shrimp continuing to be the flagship item. The total export during the period was 13,72,244 tonnes and of this, shrimp shipment was 5,65,980 tonnes.

According to Alex Ninan, president of the Seafood Exporters Association of India, Kerala region, the uncertainty in the European Union market is a concern due to the fear of rejection over antibiotic issues. Coupled with this, the imposition of 50 per cent checking on all seafood consignments from India is causing inordinate delays. Earlier it was 10 per cent. The SEAI has asked the government to seek 10 per cent random checking by the EU. This is expected to revive demand in the EU market.

Rising demand in the overseas market also prompted many Indian shrimp processors to shift from commodity products to value-added products. Some have even started marketing breaded and battered shrimps and freeze dried shrimps to remain competitive.

However, the drive to promote value-added products is still at a nascent stage, requiring additional investments. The government, he said, should take steps to promote such ventures as part of its Make in India initiative.

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