'Ban on shrimp exports to Thailand, Kuwait won't hit industry'

The ban on country's shrimp exports to Thailand and Kuwait is expected to have a negligible impact on the frozen shrimp industry due to its increasing global demand, a report said.
The Department of Fishery (DoF), Thailand imposed a temporary suspension on five categories of shrimps including Penaeus Vannamai (vannamai) and Penaeus monodon (black tiger) from India due to a presence of virus - Infectious Myonecrosis (IMNV). The announcement of Thailand's suspension has come within a fortnight of Kuwait's ban on the import of Indian shrimp, due to the suspected appearance of an acute disease.
The ban on shrimp exports to Thailand and Kuwait is however, expected to have a negligible impact on the Indian frozen shrimp industry as they constitute only 0.3 per cent at Rs 43.5 crore during H1FY18 of the total frozen shrimp exports from the country, ICRA Ratings said in its report here.

"The majority of the Indian exports to Thailand are also for further re-processing and are in the medium count ranges of 31-40 counts. But closely following the Kuwait ban, the Thailand suspension could impact public perception of Indian shrimp quality; the same needs to be watched," ICRA Ratings vice president Pavethra Ponniah said.
During FY17, frozen shrimp exports from India witnessed a healthy growth of 25 per cent to Rs 24,370 crore in FY17 from Rs 19,492 crore in the previous year, supported by 19 per cent year-on-year volume growth and balance from growth in realization.
The robust volume growth was supported by increasing global demand for Indian shrimp and weak production in other major aquaculture regions such as Vietnam and Thailand. The growth trend continued during H1 FY18 with volumes rising by 33.6 per cent, the report said.

India's exports to USA witnessed 24 per cent year on year growth supported by robust demand and relaxations in the regulatory regime in FY17.
Country's exports to Vietnam also registered a 76 per cent year on year growth aided by the lower domestic production in Vietnam coupled with increasing demand from EU and USA.
Going forward, healthy growth in demand of Indian frozen shrimp exports is expected to continue despite the negative sentiments regarding the imposition of ban on Indian shrimps. The robust export growth is expected to be well supported by growth drivers in major export destinations, the report said.