Why India’s shrimp exporters are suddenly racing toward value-added products

Subscribe to enjoy similar stories. New Delhi: Indian shrimp exporters are increasingly shifting focus toward value-addition as global demand trends evolve and competition intensifies. With traditional frozen raw shrimp markets facing price pressure and stricter quality norms, exporters are broadening their product portfolios to include ready-to-cook (RTC) and ready-to-eat (RTE) shrimp offerings.

"This strategic move is aimed at boosting margins, reducing dependence on commodity-grade exports, and tapping into the growing preference for convenience foods across the US, Europe, and East Asia—India’s key seafood markets," said two government officials aware of the matter. The value-added exports not only fetch higher prices, but also help exporters build brand identity and long-term customer relationships, protecting them from volatile raw shrimp prices. "The price pressures have also prompted exporters to take advantage of a production-linked incentive (PLI) scheme for the sector," said the first of the two officials cited earlier, both of whom spoke on the condition of anonymity.

Indian shrimp in the US is subjected to a 50% tariff. This has put Indian seafood at a major disadvantage in the export markets compared to competitors like Ecuador, Vietnam, and Thailand, which respectively attract 15%, 20%, and 19% US tariffs. Several leading companies have already expanded capacity to cater to quick-service restaurant (QSR) chains and private-label retail segments abroad by availing benefits under the PLI scheme.