THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY

USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT

Voluntary - Public

Date: 2/22/2017
GAIN Report Number: IN7030

India
Post: New Delhi

India’s Shrimp Sector Growing Steadily

Approved By:
Mark Wallace
Prepared By:
Vijay Intodia

Report Highlights:
India’s cultured shrimp production in FY 2014-15 was estimated at 426,500 MT while wild shrimp
production was estimated at 450,000 MT. India’s export of shrimp was 382,959 tons in CY 2015, up
9.8 percent from the previous year. To support its shrimp production, India mainly imports shrimp
broodstock, shrimp feed, and Artemia Cysts (brine shrimp used as feed supplement).
Executive Summary:

India’s cultured shrimp production in FY 2014-15 was estimated at 426,500 MT while wild production
was estimated at 450,000 MT. From FY 2004-05 to FY 2014-15, cultured shrimp production increased
at a compound annual growth rate (CAGR) of 13 percent. India’s export of shrimp was 382,959 tons in
CY 2015, up 9.8 percent from the previous year. India imports shrimp broodstock, shrimp feed, and
Artemia Cysts to support its shrimp production. The United States is the largest exporter of broodstock
to India with exports of around $10.8 million (constituting 98 percent of total volume) in CY 2015.
Additionally, in CY2015, The United States exported to India $15.44 million worth of Artemia Cysts,
which was 97 percent of India’s total imports.

Production:

India’s cultured shrimp production in FY 2014-15 (April-March) was about 426,500 MT, up 30 percent
from the previous year (Figure 1). From FY 2004-05 to FY 2014-15, shrimp production has grown at a
compound annual growth rate (CAGR) of 13 percent. The introduction of white leg shrimp
(Litopenaeus Vannamei, or Vannamei) in 2009 spurred growth in shrimp production during the last few
years and displaced sales of the other major shrimp species, tiger shrimp (Penaeus Monodon). Farming
of tiger shrimp declined once it was found to be susceptible to disease. In FY 2014-15, the production of
white leg shrimp (Vannamei) rose to around 353,000 MT, which was 81 percent of the total shrimp
production in India. The Vannamei species is preferred due to its superior traits such as fast growth
rate, disease resistance, lower feed requirements, and higher survival rate. In FY 2014-15, the area under
shrimp production in brackish water aquaculture was 121,600 hectares, which was up from 102,500
hectares in 2009-10. Industry sources indicate that shrimp production accounts for 20-25 percent of the
brackish water aquaculture. Similarly, the wild production of Penaeid and Non-Penaeid prawns was
around 450,000 MT in FY 2014-15 according to industry sources. The major marine wild species of
prawns and shrimp are White Prawn (Penaeus Indicus), Tiger Prawn (Penaeus Mondon), Pink Shrimp
(Metapenaeus Dobsoni), King Prawn (Metapenaeus Affinis), and Marine Shrimp (Paraenaeopsis
Stylifera). Cultured shrimp has generally been favored for growth over wild shrimp.
 Figure 1. India: Cultured Shrimp Production Rising

India’s largest cultured shrimp production is in the state of Andhra Pradesh, which is followed by West
Bengal, Tamilnadu & Puducherry, Gujarat, and Odisha. Tiger shrimp (Penaeus Monodon) are farmed in
the states of West Bengal, Odisha and Kerala, while the Vannamei species is preferred in the states of
Andhra Pradesh, Gujarat, Tamil Nadu and Odisha. Andhra Pradesh produces around 65 percent of the
total shrimp production in India (Figure 2). Although most of India’s shrimp production is exported, its
broodstock is imported. According to industry sources, India imports specific-pathogen-free (SPF)
Vannamei broodstock from USA, Indonesia, Thailand and Singapore, with the United States being the
dominant exporter to India: U.S. sales reached $10.8 million (98 percent of total Indian broodstock
imports) in Calendar Year (CY) 2015. In addition to broodstock, Artemia Cysts, which are used as live
feed during the larvae raising operations in shrimp hatcheries, are imported as well. In CY 2015, 97
percent ($15.44 million) of India’s Artemia Cysts were imported from the United States.

Figure 2. India: Andhra Pradesh is the Largest Cultured Shrimp Producing State
 Figure 3. India: United States comprise largest share of Artemia Cysts Imports

Industry sources indicate that demand for shrimp feed has grown with the spurt in cultured shrimp
production during the last few years. The CY 2015 shrimp feed sales volume was estimated at around
800,000 MT according to industry sources. Extruded floating feed has become more popular with
farmers than pelleted feed. Its advantages include better feed conversion ratio, improved digestibility,
and near-zero wastage. According to industry estimates, the total current production capacity for shrimp
feed manufacturing is around 1.33 million MTs per annum. Shrimp farms generally get feed conversion
ratios ranging from 1.4:1 to 1.8:1.

Although industry growth in the last five years has been phenomenal, industry sources indicate that
challenges exist in the form of diseases such as white spot virus, enterocytozoon hepatopenaei (EHP),
running mortality syndrome, and white feces. Some of the other diseases faced by the industry include
salmonella, hystria, and drug residues. High water temperature in summer and mineral imbalances,
which are common in shrimp culture areas low on salinity, also affect production. Meanwhile, known
development needs include additional infrastructure such as quarantine facilities and broodstock
multiplication centers. These would enable consistent supply of specific pathogen-free broodstock to the
shrimp farms.

Consumption:

India’s annual per capita fish and shrimp consumption is estimated at around 6 Kg, which is low in
comparison to the global per capita fish consumption average of around 18 Kg. Shrimp consumption
alone in India was estimated at around 500,000 MT for FY 2014-15. More than 70 percent of the fish
and shrimp harvested is sold fresh; the rest is dried, smoked or processed. The domestic fish market,
which receives more than 80 percent of production, is highly unorganized. Currently crushed ice is the
principal means of reducing spoilage and the insufficient cold chain infrastructure is a major challenge
for widespread distribution of fish and other aquaculture products across the country. In turn, limited
availability limits consumption growth. Greater availability of seafood products in coastal regions
naturally results in greater consumption, but so also does the growing awareness about the health
benefits of fish: quick service and multi cuisine restaurants are promoting that awareness to drive
consumption in those areas.

Trade:

Exports

From CY 2010 to 2015 shrimp export volume increased at a compound annual growth rate of 15.8
percent. India’s shrimp export volume reached 382,959 Tons in CY 2015 (equivalent to $3.19 billion),
an increase of 9.8 percent from the previous year’s volume, and the figures for 2016 show an increase of
13.3 percent year on year. This growth resulted both from the introduction of Litopenaeus Vannamei
shrimp in 2009 and from the decline in competing exports from East Asian and South-east Asian
countries due to early mortality syndrome (EMS) beginning in 2013.

In CY 2015, 97 percent (369,583 Tons equivalent to $3.07 billion) of Indian shrimp exports were frozen.
The United States is the largest market for Indian frozen shrimp, followed by Vietnam, Japan, Belgium
and Netherland. The frozen shrimp exports to United States were 123,971 Tons (equivalent to $1.17
billion) in CY2015, up 19.6 percent from CY 2014 (Figure 4). India’s imports of shrimp are negligible,
but feed imports are significant: in CY 2015, India imported about $48 million of shrimp feed from
Vietnam, Thailand, Malaysia, and Indonesia.

Figure 4. India: Frozen Shrimps Exports (HS Code: 030617)

GOI’s Marine Products Export Development Authority (MPEDA) regulates aquaculture production,
which includes shrimp. Through a variety of policies and activities, MPEDA supports aquaculture
production, development of processing infrastructure and value-addition, and establishing standards for
quality control and market promotion. MPEDA provides financial and technical assistance for
establishment of shrimp farms, hatcheries, disease diagnostic laboratories, processing infrastructure,
cold chain, and effluent treatment units. GOI’s Food Safety and Standards Authority of India (FSSAI)
define standards for fishery products, including shrimp, through the Food Safety and Standards
Regulations (FSSR 2011).

The veterinary health certificate required for exports is issued by GOI’s Export Inspection Council
(EIC) under Ministry of Commerce and Industry. EIC also regulates traceability and antibiotic residue
for shrimp products. For importation of Vannamei broodstock and Artemia Cysts, the required sanitary
import permit is issued by the Department of Animal Husbandry, Dairying, and Fisheries (DAHDF) and
the veterinary health certificate is certified by an exporting country’s competent authority. India’s basic
import tariff is 30 percent for shrimp products, 10 percent for Vannamei broodstock, and 5 percent for
Artemia cyst.