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Shrimp export volume may slow down to 7-10% in 2019: Report

Press Trust of India  |  Mumbai 

Indian export volume is expected to slow down to 7-10 per cent during this year after a four-year period of robust growth during CY2013-CY2017), according to a report.

During CY2013-17 exports grew at 17 per cent annually, ratings agency said in a report.

This is mainly due to weakness in demand in the European and Japanese markets even as demand from and USA are likely to grow, the report said.

EU and contributed to 11.6 per cent and 6.5 per cent of total exports during the first 10 months of FY2018, respectively.

However, EU's and Japan's demand remained muted for the period 2013-17 year with EU's imports growing at an annual level of 3.3 per cent, and Japan's shrimp imports declining by 4.6 per cent.

According to the report, Chinese shrimp demand will be driven by low domestic production growth coupled with growing domestic shrimp consumption.

This along with any potential trade agreements (under negotiation) between and is expected to augur well for the Indian shrimp exports.

"The country derives almost 87 per cent of its shrimp export demand from the US, EU, China, and The healthy growth in the past four years was attributed to weak production dynamics in other major shrimp producing nations such as and leading to strong uptick in demand for Indian shrimp," - Corporate Sector Ratings, Pavethra Ponniah said.

In terms of key export volumes, over the last four fiscals, USA has contributed to majority of India's shrimp exports accounting for 38 per cent of the total shipments during the first 10 months of CY2018.

This was driven by a steady increase in USA's demand for Indian shrimp due to the lower production in hit

Exports to USA witnessed a robust annual growth of 25.2 per cent during CY2014-17, outpacing the country's demand growth of 7.1 per cent.

This was followed by strong exports growth to and China, which overtook EU in CY2016 to become the second largest destination for Indian shrimp exports.

The same was due to healthy demand for shrimp in and weak domestic production.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, January 09 2019. 16:00 IST