India’s shrimp industry is preparing for a recovery phase as exporters shift their focus beyond the US market. While recent tariff concerns created uncertainty, industry experts say India has already found strong demand from other countries, helping reduce dependence on the US.
According to Divya Kumar Gulati, Chairman of CLFMA India, India exports about $4.8 billion worth of shrimp annually, with the US traditionally taking more than half of the total. Because of tariff worries, US buyers imported large quantities earlier this year, resulting in over $1 billion worth of shrimp exports already delivered to the American market.
China alone imports around $1.4 billion of Indian shrimp and has already met more than half its annual demand. This front-loaded buying has helped cushion the initial impact.
Even with this diversification, the country may still face a 10-12% shortfall in total exports by year-end.
Sandeep P, Director at CareEdge Ratings, said the shortfall will affect some exporters, but the situation is manageable. Most players have shifted to alternative markets, and early US buying has supported overall demand. From a credit perspective, he believes the disruption is “negative but not alarming.”
At the same time, India has expanded its presence in China, Vietnam, Japan and the European Union, with non-US exports rising over 30% so far this year.
To address the shortfall and strengthen the sector, Gulati highlighted three key steps: India has signed free trade agreements with the EU and Russia, and 106 Indian units have been approved for EU exports. Russia is expected to begin buying Indian shrimp from January once all import standards are finalised.
Countries like Japan, which already imports offer room for additional growth. Vietnam can also add value to Indian shrimp and export to global markets, including the US.
The industry wants shrimp farming to be recognised as part of the agriculture sector across India. This will improve access to credit, insurance and government support.