India’s seafood sector is a slowdown in exports due to cooling demand in its major markets.
The Indian government previously set a goal of reaching USD 8.6 billion (EUR 8.6 billion) in seafood exports in the 2022-2023 fiscal year, which began 1 April – up 10.8 percent from the USD 7.76 billion (EUR 7.76 billion) it recorded in the previous year.
However, India’s seafood sales to many of its major markets began to slow down in August 2022, and that trend is likely to continue in the months ahead, Money Control reported.
In the U.S., the top destination for seafood products from India, shrimp stockpiling has dampened demand.
“Compared with last year, there is a slowdown in exports to the U.S. They are holding stocks and the purchases have become sluggish from August,’’ Nekkanti Sea Foods Director M Nagesh said.
Jinny Marine Traders Managing Director Kenny Thomas attributed the slowdown in India’s shrimp sales to the U.S. to the competition from Ecuador.
“Cost of production in Ecuador is cheaper than in India and the freight rate to the U.S. is lower. Thus, Ecuador is able to sell shrimp at a more-competitive rate than India,” Thomas said.
Separately, COVID-19 lockdowns in several Chinese cities are dampening sales to China, according to Nagesh. But he said Indian exporters are still pushing to export to China due to a belief home consumption is likely to surge during the lockdowns – a trend reflected in data showing an increase in online deliveries within the past two months.
Europe, another key market for Indian exporters, is struggling with an energy crisis as Russia threatens to cut off its gas supply in retaliation for the arming of its opponent in the Russia-Ukraine war, forcing buyers there to reconsider their purchase plans, according to WestCoast Group Director Rahul Kulkarni.
“It is true that we are facing severe headwinds in the U.S. and Europe markets. But the impact is going to be felt more in the coming months when we go into the New Year season. China is O.K. now. but we are not bullish about the market because of the spread of the pandemic,’’ Kulkarni said.
Meanwhile, India’s production of shrimp, which accounts for a large share of the country’s total seafood export value, is likely to decline by about 10 percent, dipping below 900,000 metric tons (MT) this year, All India Shrimp Hatcheries Association President Ravi Kumar Yellanki said. He attributed the decline to the impacts of inflation, diseases, rains, and floods. Imports of shrimp broodstock into India have fallen and pond prices have gone up, but the global shrimp prices have not risen accordingly, Yellanki said.
While Andhra Pradesh, India’s top state for shrimp farming, is on track to meet its production goals, Odisha, West Bengal, and Gujarat are likely to see declines this year, Yellanki said.
Photo courtesy of WestCoast Group
