Indian shrimp prices dip due to 'crash harvest', incessant rains in Andhra Pradesh

Indian shrimp prices fell in the week ended May 23 as incessant rains and power cuts in the main shrimp-producing state of Andhra Pradesh prompted producers to harvest early.

Market participants reported observing a "crash harvest" and a rise in the supply of smaller-sized shrimp. According to sources, the farmgate prices of head-on shell-on shrimp, or HOSO, 70 count/kg and smaller, fell by Rs 10/kg ($117/mt) over the week.

Platts, part of S&P Global Commodity Insights, assessed peeled, deveined, tail-on shrimp FCA India at $7,073/mt on May 23, down $70/mt from the previous week.

India is the second-largest exporter of shrimp after Ecuador and the third-largest producer after China and Ecuador.

Harvest yet to peak

Market participants said that erratic rain, high daytime temperatures and frequent power cuts in parts of Andhra Pradesh in the week ended May 16 affected the quality of water in the ponds, and many farmers opted to harvest early to minimize the risk of losing their crop. Major shrimp-producing regions of Andhra Pradesh experienced continuous rainfall in the week ended May 23.

Early harvest has led to increased landings of smaller-sized shrimp, and an increase in supply in other east coast states of Odisha and West Bengal has also affected prices in Andhra Pradesh.

A processor based in Nellore, Andhra Pradesh, said that they were receiving 50 mt of raw material daily at the processing plant, and the majority consists of HOSO shrimp, 70 count/kg.

Offers for HOSO shrimp, 70 count/kg and 100 count/kg, were heard at Rs 275/kg and Rs 225/kg, during the week to May 23. However, sources indicated that procurement was ongoing at least Rupees 15-20/kg below the offer levels.

One trader said that processors have been reluctant to raise prices because of an ample supply in the market. The trader said that harvest could peak only by June, and they were concerned about a further decline in prices amid steady supply.

The output from the first main crop is expected to be higher in 2025.

Market participants said that if the rains disrupt the harvest, the prices of larger-sized shrimp might strengthen in the coming weeks.

Slow demand, tough competition

Indian shrimp prices rebounded after the US announced a 90-day tariff pause April 9. Demand for raw materials increased as exporters started to push out shipments to be delivered to the US before the tariff pause ends July 9. The US is India's biggest export market.

However, the rise in prices has not sustained as buyers have been reluctant to make fresh purchases, fearing that potential future tariff reductions could result in overpriced inventory that would be difficult to sell at a reasonable margin.

Exporters said that market activity toward the US has been limited to fulfilling shipments of existing contracts signed in the first quarter of 2025, and fresh demand has been slow. Market participants also hinted that inventories in the US were sufficient until Q3 2025.

An exporter based in Visakhapatnam said that the "impact of tariffs has not trickled down to the consumer level yet, but if the retail demand slows down, the rest of the year would be difficult for Indian suppliers." The exporter reiterated that there was no supply glut now.

Meanwhile, healthy supply and lower prices in Ecuador have been giving India tough competition in markets such as the EU and China.

An exporter based in Nellore said Ecuador was offering HOSO shrimp, 30-40 count/kg, at a discount of 60-80 cents/kg on a CIF China basis, which has been difficult to compete with. "China is an opportunistic buyer, and they buy from India mostly to fill inventory gaps," the exporter said.

"Unlike sales to the US and EU, the unit value of returns from China sales is lower, and even if there is an increase in demand from China, it cannot lift the market mood in India," said the exporter.