Indian shrimp prices fall amid talks of recovering supply

Indian shrimp market had a bearish undertone as market participants expect an increased output from the first main crop harvest due by mid-March to April.

India has two major shrimp cropping patterns in the main producing East Coast states: the dominant summer crop, and a monsoon crop, with harvest by November.

Platts peeled, deveined, tail on shrimp FCA India fell by $420/mt on month to $7,274/mt March 3.

Sources said that market talks of recovering supply and sluggish retail demand from the US and EU have weighed on the Indian shrimp prices, as export offers for value-added shrimp dropped consistently through February.

Though farmgate prices remained firm earlier in the month, displaying a disconnect with export demand, the prices softened in the second half of the month as processors paused any fresh procurement citing prices to be unviable.

Increased stocking, recovering supply

Vannamei prices had gone up towards the end of 2024 due to lower output of second main crop in 2024 following floods, cyclones and disease outbreaks.

Market participants said that the increase in prices had prompted many farmers to raise the stocking of ponds for the first main crop in 2025.

A trader based in Chennai said the Vannamei seed (post larvae) prices spiked early in January due to increase in demand from farmers and limited supply.

"Seed prices usually hover around Rupee 0.25-0.30 per seed, but prices shot up to Rupee 0.35 in early January which indicates an increase in stocking by farmers," the source said.

"The (crop) output is most likely to be higher than last year," one exporter based in Nellore said.

Prices fall ahead of harvest

Farmgate prices of head on shell on shrimp in the state of Andhra Pradesh had fallen by at least Rupees 50/kg ($573/mt) month on month, a trader based in West Godavari said March 3.

Sources said that the prices are likely to fall further as harvest picks up pace in the largest shrimp producing state, Andhra Pradesh.

One producer based in Bhimavaram, Andhra Pradesh said that "the input costs were higher, and feed prices remain firm despite a drop in domestic soybean meal prices."

Indian farmers were reeling under low shrimp prices due to a global oversupply since 2022 and the prices showed signs of recovery in the second of 2024.

The fall in shrimp prices ahead of the new crop harvest is of great concern to many producers.

Some exporters also echoed the same sentiment as they expect the unit value returns of shrimp exported to drop.

"The headless shrimp prices have fallen significantly in the last two weeks, and we expect other value-added shrimps to follow suit," one exporter based in Visakhapatnam said.