June 29, 2026
 

India's Andhra Pradesh shrimp farmers pivot to local sales as export disruption cuts prices

Rising freight costs linked to Middle East shipping disruptions have curtailed export activity from India's largest marine exporting state, forcing producers to offload stock at depressed domestic prices.

Shrimp farmers in India's Andhra Pradesh are selling produce directly to local markets at around ₹400 per kg (US$4.68/kg) for large-sized tiger shrimp, as disruptions to international shipping lanes and rising freight costs have curtailed export demand and pushed down farmgate prices.

Andhra Pradesh accounts for roughly 35% of India's total marine exports, making it particularly exposed to the freight cost increases that have accompanied elevated global crude oil prices and regional shipping disruptions over recent months. Farmers and traders say export shipments to the Middle East and other markets have been disrupted for several months, with higher freight expenses directly reducing the competitiveness of Indian seafood in overseas markets.

With export channels constrained, producers of tiger shrimp and crab - commodities that normally command strong demand in Vietnam, Thailand, China and the Middle East - have been diverting stock to domestic shandies and roadside sales, particularly on weekends, at locations including Eluru, Gudivada, Kaikaluru, Machilipatnam and Avanigadda. Kumba Kondalamma, a farmer selling on the outskirts of Vijayawada, said 20-30 count prawns were moving at ₹450-500/kg (US$5.26-5.85/kg) in the local market.

The price weakness comes on top of existing margin pressure in the state, where farmers have been contending with rising feed costs and disease losses. The combined impact on the aquaculture sector's hundreds of thousands of stakeholders in Andhra Pradesh represents a significant setback during what is typically a key production period.

- The Hindu