February 12, 2014

 

India's earnings in shrimp exports rise 90% in Apr-Dec 2013

 
 

During April-December 2013 in the current financial year, a huge increase in the rupee value of shrimp exports was recorded, with earnings rising 90% to INR14,364 crore (US$2.3 billion).

 

The share of shrimps in total seafood exports' earnings scaled to 65%, which was 51% a year ago. The overall exports of shrimps during the period were 229,010 tonnes, worth US$2,396 million. Exports had a growth of 27.5% in quantity and 70% in dollar terms a year ago. The unit value realisation increased 34%, according to the Marine Products Export Development Authority (MPEDA).

 

According to Anwar Hashim, an exporter and former president of Seafood Exporters Association of India, this performance was due to two major factors: a major fall in the production and exports from south-east Asia and the lowering of   countervailing duty (CVD) on Indian shrimp in the US. Production in south-east Asia had been affected due to the spread of a disease called early mortality syndrome (EMS). Supply from Thailand, world's second-largest producer, dropped 50% from the normal production of 500,000 tonnes a year. Other leading producers like Vietnam and Malaysia had been affected, too.

 

Processing plants in East Asia had to depend on Indian exports to meet their commitments with Europe and the US. Vietnam, China and Taiwan imported more from India in 2013, mainly for re-export. The rise in local demand in South Korea also intensified global prices, Hashim said. 

 

The US was the largest market for Indian shrimps in dollar terms. It imported 51% of the exports. This was followed by 16% to south-east Asia, 16% to the EU and 5% to Japan.

 

EMS also caused prices to increase across the world. Average global prices increased to US$9-10/kg against the previous price of US$7-7.5.
 
The US had reduced CVD to zero in September and had imposed a CVD of 5.85% on imports from India. This had affected exports in the first quarter of 2013-14.
 

The contribution of cultured shrimp to total shrimp exports was 78%. Their exports showed a growth of 32.5% in quantity and 84% in dollar terms, a year ago. Vannamei shrimp exports grew to 134,372 tonnes from 69,565 tonnes and to US$1,473.9 million from 541 million compared to a year ago, MPEDA data said.