The price of Indian vannamei shrimp continued to decline, orders are insufficient, and government intervention has not worked.

Lily - Senior Analyst
Lily - Senior Analyst
07 Nov 2022
Vannamei Tip
# 57
The price of Indian vannamei shrimp continued to decline, orders are insufficient, and government intervention has not worked.

The quotation of Indian Head on vannamei shrimp continued to decline this week, which was $0.2/kg lower than last week. The export volume to the United States, China and Europe is still not ideal. At present, the main specifications of orders in the Chinese market are 41-50. With the declining price of vannamei shrimp, there are already buyers in the Chinese market who have placed orders to purchase Head less vannamei shrimp.

In October, the Indian government set up the “Authorization Committee” for vannamei shrimp industry to supervise the local production, aiming to stabilize the market by controlling feed costs and setting the minimum price.

However, so far, the efforts of the Commission have not been fruitful. The price of raw materials in Andhra Pradesh has not increased significantly. Against the background of a stronger US dollar, the price of shrimp is even weaker.

At present, the consumption demand of vannamei shrimp in the world’s main markets is weak. The main export market of Indian vannamei shrimp: the United States has too high inventory, and India is facing fierce competition from Ecuador. The shipment speed has slowed down. The European market is affected by inflation due to the Russian Ukrainian crisis, and the consumption demand for vannamei shrimp is also declining. In another major export market, China, due to epidemic control, weak domestic consumption and other problems, many factories could not operate normally, so the export volume also slowed down significantly.

Although the recent decline has attracted orders from some Chinese purchasers, on November 3 and 4, when the Chinese customs conducted a video inspection of six Indian aquatic product manufacturers exporting to China, it was found that their prevention and control of COVID-19 did not comply with the COVID-19 prevention and control guidelines and requirements, and China has suspended accepting exports from these six enterprises to China.

 

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