Shrimp export revenues to climb 20% in CY21: Crisil
Revenues from the export of shrimp are forecast to increase by 20% year-on-year (year-on-year) to approximately $ 4.3 billion in calendar year 2021 (CY21), due to a recovery in demand and restoration of supply chains that were disrupted last year by the Covid-19 pandemic, according to a report by rating agency Crisil.
According to the study of 97 Crisil-rated exporters, accounting for more than two-thirds of industry revenue, lockdowns and supply chain disruptions caused exports to drop to $ 3.6 billion in 2020, from $ 4.7 billion in 2019.
Ecuador overtook India with $ 3.7 billion in exports, as it had fewer logistical pitfalls and focused on satisfying China’s voracious appetite for raw shrimp.
“India’s shrimp exports fell 23% in 2020 for two reasons: moderate demand in major export markets due to lockdowns and disruptions in the supply of broodstock from the United States. States, which had an impact on the national shrimp harvest cycle. The good part is that the second wave of the pandemic did not lead to strict restrictions on the movement of commodities and stocks, so it won’t be as disruptive as the first wave. Therefore, we expect exporters to run their operations well and grow an average of 20% this fiscal year, ”said Rahul Guha, Director of CRISIL Ratings.
India has established itself as an exporter of shrimp over the past decade, due to the emphasis on quality and disease control, and by moving to more resilient and free from broodstock. specific pathogens, or SPFs, from the United States.
Krishna Ambadasu, Associate Director of CRISIL Ratings, said: “The expected and gradual increase in the share of value-added exports this fiscal year also bodes well for exporters. Improved profitability and a controlled working capital cycle will limit overall debt to less than 0.4 times and interest coverage to more than 8 times. This should strengthen credit profiles. “
Crisil reports that the retaliatory tariff proposed by the United States on certain shrimp products will likely have minimal impact – estimated at only $ 6.3 million – on the growth of the industry.
The report adds that if the supply chain disruption in major shrimp-producing states continues into the second quarter of this fiscal year, it could dampen growth.