Ecuador has been eating into India’s shrimp exports to the US by supplying it at a lower price, they said.
Shrimp exports the US “has shown a decline” year on year in the first nine months of this fiscal year ended December “owing to high inventory and stiff competition from Ecuador”, DV Swamy, chairman of Marine Products Export Development Authority (MPEDA), told ET.
Finance minister Nirmala Sitharaman in her budget speech on Wednesday had announced a reduction in customs duty on fishmeal and other shrimp feed ingredients to 5% from 15%.
“The duty reduction will help more than one lakh shrimp farmers in the country and give a competitive edge for seafood exporters,” Swamy said, pointing out that the cost of production of shrimp will fall by 5%.
“Also, the duty reduction will bring down the incidence of juvenile fishing used for fish meal in domestic production,” he said.
Fishmeal contributes to 30% of shrimp feed. India imported 36,230 tonnes of fishmeal at a value of $48.54 million in FY22.Cultured shrimp account for 65% of India’s seafood exports, which stood at $7.76 billion during FY22.
The share of Indian shrimp to world shrimp trade is around 26%. The country also contributes 42% of the US’ shrimp imports. As much as 43% of Indian seafood exports in value goes to the USA.
Despite the slide in shrimp exports to the US, overall seafood exports from India so far this fiscal have increased 2.7% year on year. In the first nine months of this fiscal, seafood exports from the country stood at $6,278 million once morest $6,110 million during April-December 2021.
Exports to China, Japan, Spain, Belgium, Italy, Canada, Vietnam and Thailand have increased this year, the MPEDA chairman said.
