Sharp fall in shrimp prices and surplus supply by Ecuador has cost the Indian seafood export industry dearer. Marine product exports from the country plummeted by $710 million in FY24 at $7.4 billion from more than $8 billion in FY23.
The decline comes after export of marine products shot up for two consecutive years post-Covid.
Data available with NIRYAT portal of the Union ministry of commerce and industry states that USA was a top market for India in the marine products segment at $2.5 billion, followed by China with nearly $1.4 billion and Japan at $412 million.
Shrimp is a significant item in the basket of India’s seafood exports. However, its price dipped by 20%-25% last year, according to industry sources.
Seafood Exporters Association of India (SEAI) national vice president K V V Mohanan said, marine products export value declined mainly due to the decrease in average export price of shrimp comparing to the previous year. “Our major markets for shrimp are the USA, China, EU, Japan, Vietnam and Middle East, where we suffered due to oversupply from other countries, especially Ecuador, whose production was almost 1.5 million tonne,” he said.
India shipped 17,35,286 MT of seafood worth more than $8 billion during 2022-23, the Marine Products Export Development Authority had announced last year. With export value to the tune of $5.5 billion, frozen shrimp retained its top position accounting for a share of 67.7% of the total earnings through seafood exports in that year (FY23). It was followed by frozen fish generating an export value of $687 million.
Noting that seafood exports is a labour-oriented industry, Mohanan said, it has a tremendous prospects for growth, wherein the role of the state government and Centre was pivotal.
Israr Ahmed, vice president, Federation of Indian Export Organisations (FIEO) said, softening of western market, particularly the US, also contributed to the reduction in marine product exports. “We believe that exports will turn positive as the US economy will start catching up again in 2025,” he added.