The shrimp industry in Kerala, India, is facing a crisis due to a significant reduction in imports from Japan and the United States. This double blow has left fish export firms in Kerala struggling to cope with the fallout.

Japan’s Economic Downturn Cuts Import Demand

Japan’s decision to reduce its shrimp imports is attributed to the country’s economic recession. With a significant decrease in new purchases from India, Japanese companies are opting to use up their existing stockpiles instead of buying new shipments. As a result, Indian shrimp exporters are finding it challenging to sell their products.

The United States has banned shrimp imports from India due to concerns over sea turtle protection, further exacerbating the crisis. This ban has resulted in a substantial reduction in shrimp exports to the US market, leaving many Indian exporters without a major customer.

Global Market Shifts Away from Kerala Shrimp

The problem is not limited to these two countries. Other major importers, such as the UK, are also reducing their shrimp imports, while China is purchasing shrimp at significantly lower prices. This shift in the global market has led to a drastic price drop for all types of shrimp, including brown shrimp, which has fallen by about 65%.

The crisis is having a devastating impact on workers who depend on the shrimp fishing industry for their livelihoods. Thousands of workers have lost their jobs as exports have come to a halt, and fish processing factories in Kochi and Alappuzha, as well as peeling sheds employing women workers, have shut down. Some export firms have even been forced to close their operations altogether.