New Delhi, Jan 8 (KNN) Indian shrimp export volume growth is expected to slow down to 7-10% (CAGR during CY2018-CY2019) after a four-year period of robust growth of 17% (CAGR during CY2013-CY2017), according to ICRA note.

This is due to the fact that while demand from the European and Japanese markets is expected to remain weak, demand from China and USA is likely to grow.

According to the note, Chinese shrimp demand will be driven by low domestic production growth coupled with growing domestic shrimp consumption.

As for the other key export destination, the USA, the impact of implementation of Seafood Import Monitoring Programme (SIMP) for shrimp exports into USA is a key monitor able, the note say.

A strong uptick in major shrimp production since CY2017 has intensified competition amongst leading global shrimp exporting nations.

ICRA expects increasing shrimp production amongst the top shrimp producing nations to cause demand supply mismatches inducing volatile in prices.

“The country derives almost 87% of its shrimp export demand from the USA, EU, China, Vietnam and Japan. The healthy growth in the past four years was attributed to weak production dynamics in other major shrimp producing nations such as Thailand and Vietnam leading to strong uptick in demand for Indian shrimp,” said Pavethra Ponniah, Vice President and Sector Head, Corporate Sector Ratings, ICRA.

In terms of key export volumes, market-wise, over the last four fiscals, USA has accounted for majority of India’s shrimp exports accounting for 38% of the total Indian shrimp exported during 10M CY2018 (up from 31% during CY2014).

Exports to USA witnessed a robust CAGR of 25.2% (CY2014-17); outpacing the country’s demand growth of 7.1% (CAGR CY2014-17).

Exports growth to Vietnam and China (CAGR of ~40% during CY2013-17), which overtook EU in CY2016 to become the second largest destination for Indian shrimp exports (at 31% of total Indian shrimp exports).