New Delhi, Nov 21 India’s shrimp export sector recorded strong growth in the first five months of FY26, with export value rising 18 per cent year-on-year (YoY) to $2.43 billion, a new report said on Friday.
Shipment volumes also increased by 11 per cent to 3.48 lakh metric tonnes -- reflecting healthy demand despite challenges in the US market, according to a CareEdge Ratings report.
The growth was largely supported by higher exports to non-U.S. markets, which saw a 30 per cent jump in value compared to last year.
These markets -- including China, Vietnam, Belgium, Japan and Russia -- contributed $1.38 billion in 5M FY26, up from $1.06 billion a year earlier.
Their share in India’s overall shrimp exports rose from 51 per cent to 57 per cent, highlighting a clear shift towards market diversification.
Exports to the US, traditionally India’s biggest shrimp buyer, remained muted with around 5 per cent growth in the same period.
The slowdown began in August 2025, when shipments fell sharply after months of front-loaded exports ahead of higher reciprocal tariffs.
From late August, the effective duty on Indian shrimp rose steeply to nearly 58 per cent, compared with 18–49 per cent on key competitors like Ecuador and Indonesia.
This has hurt India’s price competitiveness in both retail and food service channels in the US.
CareEdge Ratings noted that exports to the US had peaked earlier than usual this year, touching $0.27 billion in May 2025. However, the agency expects shipments to decline further in the second half of FY26, with signs of moderation already visible after a 35 per cent month-on-month drop in August.
According to CareEdge Ratings, India’s overall shrimp export momentum could soften in the second half of FY26 due to continued tariff pressure in the U.S. and slower fresh orders.
However, the impact may be partially cushioned by wider market access, increased approvals for Indian units in the EU and Russia, and early shipments in the first half of the year.
The rating agency also expects operating margins to decline by around 150 basis points, especially in FY27.
Some support may come from cost pass-through, lower farm-gate prices, and rising demand for value-added shrimp products, which grew 27 per cent globally and 78 per cent in non-US markets during the period.
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