Constant changes in macros causing exporters to change their forward-looking strategies: Report
New Delhi, Nov 28 (KNN) Some constant changes in macros making shrimp exporters relook at forward-looking strategies, said Drip Capital report on ‘Shrimp Commodity Insights’-outlining the evolving dynamics in the Indian shrimp export market in 2018.
The report said “When looking at the future, the story of Indian shrimp exports shows mixed signs. There seem to be many macro changes that are causing exporters to change their forward-looking strategies.”
On one hand, increased competition and decreased EU demand seem to be depressing sales. On the other, analysts expect that Indian shrimp exports to the US could continue to grow by 15-20% this year, it added.
Analyzing the data, the report found that the Indian shrimp exports to the US actually grew 13% this past September year-on-year while the overall export market contracted, making shrimp one of the few commodities able to weather even the most extreme ﬂuctuations in prices.
This growth is what continues to give many exporters hope as they think about their growth plans for the next year, according to report.
According to some estimates, India achieved a record output of 6 lakh tonnes in fiscal year, 2018 as well.
While disease and excessive supply could lead to a contraction in the market for this ﬁscal year, shrimp remains a highly valuable and marketable commodity for India’s export economy.
Shrimp has been a crucial component of India’s exports for several years, pushing the country to become the world’s largest shrimp exporter in 2016. In 2017, India exported more than 213,981 tonnes of the product, a 39% rise from the previous year, said the report.
According to the study report, Andhra Pradesh is the top performing shrimp exporter among Indian states for FY 2018, consistently contributing over 30% of the country’s shrimp exports over the last four quarters.
Many exporters are not currently hedged against currency ﬂuctuation; hence rupee depreciation has allowed exporters to keep losses to a minimum.
An Andhra Pradesh-based shrimp exporter, said, “Exporters dealing with regular buyers will keep seeing regular demand in the upcoming months, while those dealing with seasonal buyers will see a slowdown in demand.”
A Drip Capital spokesman said, “Depreciation of the Indian rupee against the dollar will likely support Indian exporters against those from other markets.”
As per industry analysts and trade sources, this could boost shrimp exports to the US by 15-20% this year. However, the entry of competing export countries in the global shrimp trade is also a factor to take into account, he added.
He further added that the resulting abundance of supply could cause a glut in the market, making the future of Indian shrimp trade difficult to predict for us at this juncture.
Drip Capital, a US-based fintech company, released this report. The findings of the report have been created based on data about 147 top shrimp exporters in India (with business worth $3.72 billion year-till-date).