Indian Vannamei shrimp prices rise amid tight supplies

The average farmgate price of 30-40 counts/kg head on shell on Vannamei shrimp in the state of Andhra Pradesh increased by Rupees 50/kg ($595/metric ton) in the week to Oct. 10.

Andhra Pradesh is the biggest shrimp producer in India, contributing more than 80% of the country’s total production.

Platts, part of S&P Global Commodity Insights, assessed PDTO Shrimp FCA India, 31-40 counts/lb, at $7,438/t on Oct. 10, up $221/t week on week.

India ‘low season’

India's shrimp industry is currently in a “low season” between the first and second crop of the year, leading to tight supplies.

Andhra Pradesh faced severe floods in early September, affecting many shrimp farms that completed second crop seeding. Sources expect the impact of floods to be visible on prices in the coming weeks once the second crop harvest begins.

Producers are optimistic as they expect the current price trend to sustain into the second crop harvest by November due to an increase in buying interest.

Market participants said retail buyers from the US were in the market after the suspension of port strike in the US East Coast until mid-January, which is reflected in the increase in farmgate prices of 30-40 counts/kg shrimp.

“Some retailers are looking to fill the gap in their inventories ahead of holiday season,” an exporter said.

The US is India’s largest market, with peeled deveined shrimp dominating the trade volume.

Smaller shrimp prices steady

Prices of smaller shrimps have risen consistently since June. The farmgate price of HOSO 50-60 counts/kg in Andhra Pradesh rose from Rupees 250/kg ($2,993/t) June 10 to Rupees 335/kg ($3,989/t) Oct. 10.

Exporters said they had seen strong demand from China for smaller headless shell on (HLSO) in recent months, which has mostly supported farmgate prices.

Although China's overall shrimp imports have decreased in 2024, year-to-date (Jan-July) shrimp exports from India to China have risen by 11.19% year on year, largely due to higher demand for smaller shrimp.

Market participants also said they were seeing strong domestic demand for smaller shrimps.

The absence of a domestic shrimp market has been one of the key problems facing Indian producers as they rely heavily on international demand to support their prices.

Ecuadorian supply woes

Prices in Ecuador, the world's largest producer of shrimp, continued to rise due to tight supply and energy cuts in the country.

The intensified energy rationing in Ecuador could lead to a reduction of $75 million per month in shrimp exports, the Ecuadorian Aquaculture Association, or CNA, said, due to the cascading negative impact in the entire value chain, affecting feed mills and shrimp processors.

Market participants expect the upward pressure on Ecuadorian shrimp prices to lead to more buyers in the Indian market, especially for value added shrimp products.