India’s shrimp production, the second-largest in the world, faces significant challenges. Shrimp farmers are making tough decisions to sustain their livelihoods amidst falling prices and rising competition from Ecuador.
Declining Prices and Increased Risks
Buddhadeb Pradhan, a shrimp farmer in Nandigram, West Bengal, has opted to risk a second shrimp crop soon after harvesting the first. With production costs rising and shrimp prices declining due to tariffs imposed by the United States, farmers like Pradhan are under immense financial pressure. He invested 300,000 rupees (approximately $3,380) into his shrimp farm, but fears he may not recover this amount due to a price drop from 300 rupees ($3.38) to 230 rupees ($2.59) per kilogram.
Impact of U.S. Tariffs
The tariffs, which started in May, include a rate of 58.26 percent, hindering access to the U.S. market, which accounts for around 48 percent of India’s shrimp exports. Farmers are expressing concern over maintaining profitability. Rahul Guha from Crisil Ratings remarked that the increased tariffs could discourage further investments in shrimp farming.
Production Statistics
- India produced approximately 1.1 million tonnes of shrimp in the financial year ending March 2024.
- Roughly 95 percent of this production consisted of vannamei shrimp (Litopenaeus vannamei).
- India’s frozen shrimp exports reached $5 billion globally through March 2025.
Competition from Ecuador
Ecuador poses a significant threat to India’s shrimp exports. It produces high-quality vannamei shrimp at lower costs due to lower tariffs of 15 percent. During the first nine months of 2025, Ecuador exported over 1 million metric tonnes of shrimp to the U.S., escalating competition for Indian farmers.
Challenges in Hatcheries
India’s shrimp hatcheries are feeling the pinch as well. About 550 private hatcheries rely on shrimp farmers for their livelihood. Many farmers have halted seed purchases, leading to the shutdown of at least half these hatcheries. Ravid Kumar Yellanki, president of the All India Shrimp Hatcheries Association, highlighted that these facilities produce around 80 billion seeds annually, with a marked decline in demand recently.
Conclusion: Finding New Avenues
Experts recommend diversifying markets. Aquaculture veteran Manoj Sharma suggested exploring the domestic Indian market as it remains largely untapped. As conditions evolve, farmers and industry stakeholders must adapt to survive in an increasingly competitive global landscape.
