The shrimp market in India has seen a notable price increase, driven by tight supplies and disruptions in major shrimp-producing countries. Andhra Pradesh, India’s largest shrimp-producing state, is at the center of these developments, with both domestic and international demand pushing prices higher.

Rising Farmgate Prices in Andhra Pradesh

The average farmgate price for Vannamei shrimp in Andhra Pradesh, India, surged by INR 50/kg (USD 595/metric ton) in the week leading up to October 10. Andhra Pradesh, responsible for over 80% of India’s shrimp production, has experienced fluctuating prices, reflecting both seasonal factors and external demand.

Platts, part of S&P Global Commodity Insights, reported a rise in the price of peeled, deveined, tail-on (PDTO) shrimp, 31-40 counts per pound, to USD 7,438/metric ton on October 10, up USD 221/metric ton from the previous week. This trend has caught the attention of exporters and producers, as they anticipate continued price strength into the upcoming harvest season.

Seasonal Tightness and Impact of Floods

India’s shrimp industry is currently in a “low season” between its two annual crops, leading to constrained supplies. The low season coincided with severe floods in Andhra Pradesh in early September, which damaged many shrimp farms that had just completed the second crop seeding. While the full extent of the flood damage is yet to be seen, market sources expect the impact to be reflected in shrimp prices as the second crop harvest begins in November.

Despite the recent challenges, producers remain optimistic. The rise in prices is being supported by increased buying interest, particularly from international markets, which is expected to sustain through the next harvest cycle.

US Retail Demand and Holiday Preparations

One of the main drivers of the price increase is the renewed demand from US retail buyers, particularly following the temporary resolution of a port strike on the US East Coast. The US, India’s largest shrimp market, has seen an uptick in purchases ahead of the holiday season. According to one exporter, “Some retailers are looking to fill the gap in their inventories ahead of the holiday season,” reflecting the increased activity in the market.

Smaller shrimp varieties, such as the 50-60 counts/kg head-on shell-on (HOSO) shrimp, have also seen significant price increases. Farmgate prices in Andhra Pradesh for this variety jumped from INR 250/kg (USD 2,993/metric ton) in June to INR 335/kg (USD 3,989/metric ton) by October 10, demonstrating a consistent upward trend over the past few months.

Strong Chinese Demand for Smaller Shrimp

While China’s overall shrimp imports have declined in 2024, demand for smaller shrimp has remained robust. Year-to-date (January to July), India’s shrimp exports to China rose by 11.19% year on year, largely driven by a preference for smaller headless shell-on (HLSO) shrimp. This demand has helped support farmgate prices in India, as Chinese buyers continue to seek out Indian shrimp despite the broader slowdown in China’s seafood imports.