Strong demand from South Asian countries and revival in the US market are also helping the sector, national president of Seafood Exporters Association of India (SEAI), Anwar Hashim, said.

 

Hashim estimates that more than 20,000 tonnes of vannamei shrimps are expected to be exported in the current financial year giving a competitive edge to Indian exporters on prices. According to figures of the Marine Exports Product Development Authority (MPEDA), exports during the four-month period of April-July 2010 are up by 23% as compared to the same period last year. Exports in 2009-10 aggregated to 663,603 tonnes valued at INR99.2 billion (US$2.2 billion).

 

India started farming vannamei shrimps in 2010 following stiff competition from countries like Thailand and China in the global market.

 

India produces mainly black tiger shrimp and processing facilities are running at only about 30% of their capacity. Export rivals in Asia, such as Thailand, Vietnam, and Indonesia, have already introduced this variety which resulted in a jump in their production. Black tiger shrimps have higher production costs and lower yields than vannamei.

 

According to SEAI sources, the cost of production of vannamei is US$2.29 per kg -- which is just half the cost of producing other Indian shrimp species.

 

''Buying in the US and EU market has improved and a global shortage of shrimps is helping us get better value. Hopefully, after the fifth administrative review of ant-dumping duty things will improve very fast,'' Hashim said.

 

He added that buying from South Asian countries, which include China, has been sustained. China, with a share of 17.73% of the total exports in 2009-10, is proving to be major focus for Indian exports in the future. Southeast Asian countries with 14.61% of the share follow behind China.