New Delhi, Nov 21 (NationPress) India’s shrimp export industry has experienced remarkable growth during the initial five months of FY26, with the export value climbing by 18 percent year-on-year (YoY) to reach $2.43 billion, according to a recent report released on Friday.

Shipment volumes also surged by 11 percent to 3.48 lakh metric tonnes, indicating robust demand despite hurdles in the US market, as detailed in a report by CareEdge Ratings.

This expansion was primarily driven by increased exports to non-U.S. markets, which witnessed a 30 percent increase in value compared to the previous year.

These markets—including China, Vietnam, Belgium, Japan, and Russia—contributed $1.38 billion in the first five months of FY26, up from $1.06 billion the prior year.

As a result, their share in India’s total shrimp exports rose from 51 percent to 57 percent, indicating a significant shift towards market diversification.

Conversely, exports to the US, traditionally India’s largest shrimp buyer, saw only a muted 5 percent growth during the same timeframe.

The slowdown began in August 2025, when shipments plummeted sharply following months of front-loaded exports ahead of increased reciprocal tariffs.

From late August, the effective duty on Indian shrimp surged to nearly 58 percent, in stark contrast to the 18–49 percent rates imposed on key competitors like Ecuador and Indonesia.

This has adversely affected India’s price competitiveness across both retail and food service sectors in the US.

CareEdge Ratings highlighted that exports to the US had peaked earlier than usual this year, reaching $0.27 billion in May 2025. However, the agency anticipates a further decline in shipments during the second half of FY26, with signs of moderation already evident following a 35 percent month-on-month drop in August.

According to CareEdge Ratings, the overall momentum of India’s shrimp exports may decelerate in the latter half of FY26 due to ongoing tariff pressures in the U.S. and a slowdown in fresh orders.

Nonetheless, the impact may be somewhat mitigated by broader market access, increased approvals for Indian facilities in the EU and Russia, as well as early shipments in the first half of the year.

The rating agency also foresees operating margins declining by approximately 150 basis points, particularly in FY27.

Some support could stem from cost pass-through, declining farm-gate prices, and escalating demand for value-added shrimp products, which surged by 27 percent globally and 78 percent in non-U.S. markets during this period.