The seafood industry has something to rejoice at last as there is record production of vannamei shrimp in the first half of 2021, coupled with the introduction of pathogen-free black tiger shrimp broodstock, that has led to strong demand in the US and raised the hopes of the Indian seafood industry in hitting the $7 billion mark in exports in FY22. Seafood export from the country had declined by about 11 percent in FY21 to $5.96 billion from a year earlier as COVID-19 disrupted shipments. However, the last few months have seen demand in the US, India’s main market, booming and the farmers harvesting a bumper output of the vannamei shrimp that accounts for a major share of the export basket.
Despite the persisting shipping container shortage and high freight rates, the seafood industry is working towards achieving the export target set by the Centre.
According to the Ministry of Commerce, the industry has been asked to raise exports by 31 percent to $7.8 billion in FY22. At present, the market is looking good with prices moving up. The US demand is strong, while China, the second-biggest market for India, despite the COVID protocol, has started buying more,’’ said Jagdish Fofandi, president of Seafood Exporters Association of India.
Aquaculture farmers have produced more vannamei this year. There has been a record harvest of 3.28 lakh tonnes in the first six months of 2021. This is higher than even the production in the first half of 2018, which has been the best so far.
The reason behind this is good farm shrimp production in the second half of the year, along with a good catch from the seas, will help the industry touch the target set by the Centre, provided the logistics bottlenecks are solved fast.
Before the advent of the vannamei shrimp over a decade ago, the black tiger shrimp had dominated India’s seafood export. Its share has dropped to over 10 percent now, with the comparatively disease-resistant vannamei ruling the roost.
Specific pathogen-free (SPF) black tiger shrimp broodstock import has been permitted from two suppliers in the US and Madagascar, which may boost its share in the export.
The farmers were encouraged by the rising demand in the US, where the focus shifted to the retail market when the pandemic struck. “Now, restaurants have opened and the food-service sector seems to have bounced back with a vengeance. At the same time, people have become used to eating shrimp at home. So, the combined strength of the retail and the food service sector has raised the demand in the US.
India imports 90 percent of the vannamei broodstock from the US for the supply of seeds to farmers. Its import had touched a new high of over 2.5 lakh in FY21, which has been reflected in the higher production and export of seafood in the current year.
The export to the US has increased by 35-40 percent this year. And most exporters have completed their major shipments in the first few months of the fiscal.
Unlike vannamei, the tiger shrimp can be harvested in large sizes and fetch better prices. Japan, which lifted inspection on black tiger shrimp from India last year, accounts for about 40 percent of export from the country. Apart from the US, China, which is currently dependent on Vietnam for tiger shrimp supply, is also expected to buy more from India.
This year, many farmers have taken to black tiger shrimp. In the next year, 25 percent of the farmers are expected to shift to its cultivation.