Tepid buying from the US, China, Japan and Europe is one of the factors. The US is getting a lot of shrimps from Ecuador cheaply as transportation costs and the time needed for delivery are less. The US is the leading buyer of Indian seafood.
Shrimp from Ecuador. Source: Stockfile FIS -->
Weak demand for peeled frozen products in the US retail market is expected to keep prices down. Exporters see no substantial improvement in the US market until early 2024 as it is saddled with a big inventory.
India is unlikely to meet its seafood export target worth $9.25 billion for FY24. Though there has been a slight improvement in exports in the last couple of months, the overall sentiment continues to remain sluggish.
The second half of FY23 seems to be holding some promise, after a slowdown in exports by over 5 percent in value from April to October 2023, at about $4.5 billion, year on year (YoY), according to market reports.
Though there was an increase in volumes during August and September, and a 4 percent YoY improvement in October 2023, at $778 million, the export community is doubtful whether it can be sustained.