New Delhi, 30 May (IANS). Crisil’s report on Friday said that Indian shrimp exporters will see a 2-3 percent increase in revenue in FY 2026, as the rising prices and currency have improved improvements.
Although there is a possibility of increasing pressure on low-valeu added shrimp exports, Indian exporters have a competitive advantage in the Value-edited segment as compared to other Asian counterparts such as China, Vietnam, Thailand and Indonesia, which face high tariffs, but have more than one third market share in the US.
However, the amount of exports will remain stable due to the decrease in demand in high tariffs imposed by the US and demand reduction in major importing countries, as dull economic growth affects disposable income.
India exports about 48 percent of its production to the US. Reciperochl tariffs announced by the US, although currently stopped, will benefit South American exporters such as the world’s largest shrimp exporter Ecuador.
Indian exporters will have to face more competition in Raw Frozen and Polested Frozen categories, which have a low value edition and which are less remuneration.
According to the report, the operational margin will be under pressure as the tariff burden will only be partially and slowly, as seen in the past, while exporters look for other markets and improve the offer through the value edition.
The report stated that the capital structure is expected to be in a better position.
Crisil Ratings director Himank Sharma said, “Prices and competition increased after imposing a compensatory fee of 5.77 percent from the US for Indian shrimp exporters in the last financial year.”
In this financial year, with the US imposition of reciperochl tariffs where economic activity in other major markets like European Union and China is dull, our exporters will see stability in demand.
The demand for global shrimp has been stable at 4 million tonnes (MT) in the last few financial years and it is likely to be low in this financial year.
Indian exporters currently have about fifth of the global market share, while domestic production is seen stable at 1.2 MT, as non-profit global prices are affecting shrimp culture and development.
-IANS
SKT/ABM
