Revenue From Export of Shrimps Likely to Increase 20% to $4.3 bn in 2021: Crisil

06/01/2021

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Sutanuka Ghosal | The Economic Times

Revenue from export of shrimps is expected to dart up 20% on-year to about $4.3 billion in calendar 2021, driven by a revival in demand and restoration of supply chains that were disrupted last year by the Covid-19 pandemic. That should help India wrest global leadership in shrimp exports after slipping to the second spot in calendar 2020, a study of 97 CRISIL-rated exporters, accounting for over two-thirds of the industry’s revenue, shows.

In calendar 2020, lockdowns and supply-chain disruptions meant exports declined to $3.6 billion from $4.7 billion in 2019. Ecuador edged past India with $3.7 billion exports because it had fewer logistical snafus and focused on catering to the voracious appetite in China for raw shrimps. India, Ecuador and Vietnam account for 55% of the global shrimp sales.

Rahul Guha said “India’s shrimp exports contracted 23% in calendar 2020 for two reasons: subdued demand in key export markets because of lockdowns, and disruptions in brood-stock supplies from the US, which impacted the domestic shrimp harvest cycle. The good part is, the second wave of the pandemic has not led to stringent curbs on movement of raw materials and stock, so it won’t be as disruptive as the as the first wave. Therefore, we expect exporters to manage their operations well and grow an average 20% this fiscal.”

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