The next time you are relishing shrimps in a restaurant in US, Europe or Middle East there is high probability that those shrimps might well have been exported from our very own state of Andhra Pradesh.
The Aquaculture/Seafood industry in Andhra Pradesh has grown leaps and bounds over the past couple of decades with AP becoming the numero uno exporter of frozen shrimps from India.
Exports in the Frozen Shrimp category have skyrocketed from Andhra Pradesh with the lions share of exports going to the US followed by Europe, China and middle east.
During the financial year 2021-22, India exported a total of 13,69,264 MT of Seafood worth a massive US$ 7.76 Billion. This by the way was an all time high (in terms of value) that the sector had ever reported.
Frozen shrimp continued to be the major export item. Out of the total USD 7.76 billion exports a whopping USD 5,828.59 Million (i.e. USD 5.8 billion) was frozen shrimp with a quantity of 7,28,123 MT. These accounted for a share of 53.18% in terms of quantity and 75.11% of the total USD earnings.
AP continued its dominance in the seafood exports by exporting a whopping USD 2.72 billion in seafood exports out of the total USD 7.76 billion in FY 22. This in value terms marked Andhra Pradesh’s share at 35.07% while in quantity terms it stood at 23.73%.
‘There has been phenomenal growth of the marine products Exports from India especially from the state of Andhra Pradesh over the last 25 years.
Credit goes to all the stake holders of the Sea food sector which include Aqua farmers, Hatchery owners and Exporters for being very enterprising’ said Mr Padmanabham Vattikuti of SSF Limited one of the veterans of the seafood industry from Andhra Pradesh.
The aquaculture industry in Andhra Pradesh has undoubtedly brought in prosperity not only to the numerous exporters of this region but also provided meaningful employment to many.
And the industry is set to further grow in size with the demand for shrimps all set to embellish thereby positively impacting the aquaculture industry in Andhra Pradesh.
Outlook for FY24
As per a recent report by Rating agency Crisil India’s shrimp sector will see revenue grow 5% on-year in fiscal 2024, driven by increasing demand from China, which will shore up exports to near lifetime high of $5.3 billion seen in fiscal 2022.
This growth as per the rating agency will largely be volume-driven, allowing operating margin to bounce back to 7.5%, as costs soften.
‘Buyers from the US and Europe prefer shrimps processed in India because of better quality- and disease-control measures’ said Mr Himank Sharma, Director, CRISIL Ratings.
Echoing similar sentiments Mr Venkat Rao Nekkanti of Nekkanti Seafoods one of the biggest exporters of marine products from Andhra Pradesh said ‘Salmon is often considered to be the biggest alternative to shrimp however prices of Salmon have gone up 40% while shrimp still offers value for money’ opined Mr Venkat.
Finding New Markets
He albeit advocated the need for finding newer markets and diversifying the export basket.
Other countries are giving stiff competition to Indian exporters and luring buyers to their respective home turf.
Ecuador is one such country which has been giving Indian seafood exporters a run for their money.
As per industry sources, Ecuador’s production has doubled over the past 3 years.
‘In terms of production Ecuador is first and India second. However, we still remain the number 1 Exporter to the USA’ noted Mr Venkat.
The Crisil report stated that with supply chains getting restored, Indian exporters can replace Ecuadorian suppliers and regain their lost market share.
‘Revival in the Chinese economy will also aid growth in shrimp exports from India. Revenue will grow 5% in fiscal 2024 on the back of volume growth of 8-10% despite reduction in realisations’ said Mr Himank.
The Andhra Pradesh’s seafood industry has thus substantially evolved over the last 4 decades from the 1970s to the present. It has witnessed remarkable growth over the years and with the astuteness of our exporters coupled with enabling policy support along with adoption of newer technology (in aqua farming) the industry shall achieve even greater heights of success.
As Mr Kishore Kumar Cherukumalli of Sandy Bay Seafoods put it aptly ‘Its been a wonderful journey of last 4 decades. This industry is now poised for the next leap of growth in to value added products for the world markets’.
