India’s export of shrimps to the U.S. grew 18 percent in value terms in April, the slowest pace in eight months.
Shrimp imports in the U.S. have been tapering off in the last couple of months because of the extended winter. The U.S.’ total shrimp imports grew by 4 percent in April in terms of volumes, taking the total imports to 45,688 metric tonnes, according to the latest data released by the U.S. Census Bureau and the U.S. Bureau of Economic Analysis. India remained the largest exporter of shrimp to the U.S., accounting for nearly 35 percent of the shipments during the month.
The increase in demand is primarily due to shrimp price correction during the month, KS Choudary, executive director of India’s largest shrimp exporter Apex Frozen Foods Ltd., told BloombergQuint.
We are confident that the increase in consumption will keep the demand firm and steady.K S Choudary, Executive Director, Apex Frozen Foods
Shrimp prices fell for the sixth consecutive month in April. Shrimp realisations fell to $9.56/kg due to strong supply conditions in the international market. However, this price correction has come to an end, said Choudary.
Indian Companies Gain
Seafood companies, such as Apex Frozen Foods, have gained from this rise in exports and price correction. Apex Frozen Foods generates nearly three-fourth of its revenue from exports to the U.S. market. Its revenue rose as much as 43 percent in financial year 2017-18, compared to last year on the back of rising exports. The company also benefited from lower raw material prices, which led to the three-fold jump in the company’s net profit.
India’s shrimp exports have been continuously rising. Domestic shrimp exporters have emphasised on lower-density shrimp farms to control diseases, while maintaining quality across the value chain, which has led to a rise in exports, according to a Crisil report. India’s shrimp production doubled, and helped it grab the opportunity created by lower supplies from Asia.