Chennai, Nov 21 (UNI) Indian shrimp exporters are finding friendly tides in non-US markets after the US imposed heavy import duty this year.
According to an industry report by the credit rating agency CARE Ratings, the shrimp exports grew strongly in the first five months of FY26, driven by non-US markets such as Vietnam, Belgium, China, Russia, and others, which accounted for 86 percent of the incremental export value.
While export momentum may soften in second-half (H2) of FY26 due to continued US pressure and weaker fresh orders, the industry is cushioning the impact through various measures, including opening access to previously inaccessible markets and an incremental number of approvals for Indian units for export to the European union (EU) and Russia.
India’s shrimp export sustained healthy growth during the first five months of FY26 (5M FY26), with total export value rising 18 percent year-on-year to USD 2.43 billion, supported by an 11 pc increase in shipment volumes to 3.48 lakh metric tonnes (LMT), said CARE Ratings.
The growth was led by strong traction in non-US markets, where exports surged by 30 pc in value (USD 1.38 billion vs USD 1.06 billion), reflecting the strategic shift of Indian shrimp exporters into other geographies. Non-US markets exports, which accounted for 51 pc of overall exports in 5MFY25, increased to 57 pc in 5MFY26 on a higher base.
Shrimp exports to the US — the traditional anchor market for Indian shrimp — registered muted growth of around 5 pc in 5MFY26 compared with the corresponding period last year.
The moderation was broadly in line with expectations, with a significant drop in August 2025 following sharp growth in the earlier months of the fiscal year due to front-loading of exports ahead of the imposition of higher reciprocal tariffs effective August 27, 2025, the report notes.
Since early FY26, Indian shrimp exports to the US have faced higher tariffs, including reciprocal duties alongside existing anti-dumping and countervailing levies. Between April and August 2025, India’s effective tariff was about 18 pc, compared with 13–14 pc for Ecuador and Indonesia, the two other major shrimp-exporting nations to the USA.
Post-August, effective duty on Indian shrimp surged to about 58 pc, while competitors remained at 18–49 pc. The higher tariff exposure has weakened India’s relative price competitiveness in US retail and foodservice channels, benefiting Ecuador and Indonesia.
According to CARE Ratings, exports to the US reached USD 0.27 billion in May 2025, exceeding the average monthly export for the previous financial year. Exports to the US typically peak in the third quarter, but this year’s peak has been front-loaded.
CARE Ratings expects US exports to decline in the latter half of this year, with signs already visible from August 2025, when exports dropped by 35 pc from July 2025.
On the other hand, exports to non-US destinations surged 30 pc year-on-year to USD 1.38 billion in 5MFY26 (from USD 1.06 billion in 5MFY25), driven by a broad-based demand across geographies.
Shipments to China, which accounted for the largest share of non-USA exports, grew by 16 pc, while Japan, the erstwhile reprocessing hub, remained largely stable.
Vietnam, with export value doubling to USD 0.18 billion, highlights its increasing role as a re-export hub.
Export to Belgium also doubled to USD 0.14 billion, supported by stronger EU demand and enhanced compliance with traceability standards by the Indian players.
“India’s shrimp export performance is expected to remain moderate by 10-12 pc on the back of US tariff headwinds, partially cushioned by diversification into other geographies and frontloaded shipments during the initial months of the fiscal,” said Ratheesh Kumar, Associate Director.
“In the near term, US buyers are likely to continue partially absorbing elevated tariff costs on existing orders, aided by holiday-season demand. However, a slowdown in fresh orders and sustained tariff pressure could weigh on export momentum in the last quarter of the financial year,” Kumar added.
Sandeep P, Director said: “Operating margins are likely to moderate by 150bp, more so in FY27. Support to operating margins is likely to arise from partial cost pass-through and softer farm-gate prices.”
The growing share of value-added shrimp products—which surged 27 pc year-on-year globally and 78 pc in non-US markets in 5MFY26—is expected to support margins and reduce dependence on commodity-grade exports.
Recent Reserve Bank of India (RBI)’s relief measures—including temporary moratoriums, extended export credit tenures and others are expected to ease liquidity pressures for shrimp exporters in the near term, Sandeep added.
