INDIA :Indian shrimp production could increase by 10 per cent in 2018, provided the climate does not create major problems, according to a report by Globefish, a division of Food and Agriculture Organisation (FAO).
The document outlines that Indian shrimp exports to the United States rose by 39 per cent and reached 214,400 tonnes in 2017, which it attributes to the decrease in anti-dumping tariffs on the resource imported from India and its increased market acceptance.
Meanwhile, trade sources state that Indian aquaculture production has been forecast to reach a record 700,000 tonnes during the current fiscal and hit 1 million tonnes by 2020.
However, they consider that the entry of new players and countries in the supply chain has led to a glut in the market with shrimp prices in free fall. In addition, some of the Indian farmers have not even seeded their farms after incurring huge losses in the first quarter harvest.
Regarding global supply of farmed shrimps, the FAO report said that the global production of farmed shrimp in 2017 was estimated between 2.9–3.5 million tonnes and that nearly 75-80 per cent of the production originated in Asia-Pacific.
The report points out that on the demand side, there was a change in market direction from West to East, where China played a strong role in 2017.
An estimated 2.3 million tonnes of shrimp were imported in the top seven global markets in 2017, approximately 15 per cent more than in 2016.
Interestingly, despite increased production of farmed shrimp, prices in the international trade remained stable throughout 2017 and domestic prices remained higher than export prices.
According to FAO, in India, 100 pieces per kg of vannamei was sold at USD 3.9 per kg in the fresh market.
Regarding the outlook for 2018, the report says that a positive stock market will keep demand on the rise in the US, while China is likely to import more from India as it cracks down on illegal import from Vietnam.
On the other hand, it says that one of the major concern is the likely El Niño in 2018 that may cause extreme weather such as drought and heavy rain, which are harmful to the aquaculture sector.