Indian Shrimp Exporters To See 2-3% Uptick In Revenues This Fiscal

New Delhi: Indian shrimp exporters will see a marginal 2-3 in line with cent uptick in revenues this fiscal (FY26) on advanced realisations stemming from emerging costs and forex beneficial properties, a Crisil file stated on Friday. Though the low-value-added shrimp exports will most probably see larger pressures, Indian exporters have a aggressive merit within the value-added section over different Asian friends, comparable to China, Vietnam, Thailand and Indonesia, which face upper price lists however experience over one-third marketplace proportion in the USA.

However, export volumes can be flat on account of upper price lists anticipated to be imposed via the USA and subdued call for in key importer countries as gradual financial enlargement impacts disposable earning.

India exports on the subject of 48 in line with cent of its produce to the USA. The reciprocal price lists introduced via the USA, regardless that paused in the intervening time, will receive advantages south American exporters comparable to Ecuador, the biggest shrimp exporter on the planet. Indian exporters will face upper pageant from them within the uncooked frozen and peeled frozen classes, that have low cost addition and are much less remunerative.

According to the file, running margins can be below power since the tariff burden can be handed on handiest partly and steadily, as observed up to now, whilst exporters scout for different markets and beef up choices via cost addition.

Credit profiles will proceed to stand demanding situations as elongated running capital cycles induce additional recourse to credit score strains that, in flip, would reasonable debt coverage metrics. Capital constructions are anticipated to stay at ease, then again, the file discussed.

“Last fiscal, the waters turned choppy for Indian shrimp exporters as prices and competition increased after a countervailing duty of 5.77 per cent was slapped by the US,” stated Himank Sharma, Director, Crisil Ratings.

This fiscal, with the USA implementing reciprocal price lists — whilst different primary markets such because the European Union and China see gradual financial process — exporters will most probably see flattish call for. “But as realisations tick up, overall growth in revenues should be in low single digit this fiscal,” Sharma added.

Global shrimp call for has flatlined at 4 million tonne (MT) during the last few fiscals and can most probably stay subdued this fiscal, too. Indian exporters have round a 5th of the worldwide marketplace proportion as of now, whilst home manufacturing is observed flat at 1.2 MT because of non-remunerative world costs impacting shrimp tradition and enlargement, this fiscal.

Nagarjun Alaparthi, Associate Director, Crisil Ratings, stated that “Despite rising debt, the capital structures of shrimp exporters will remain healthy”.