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India's Shrimp Exporters Pivot to Value-Added Products
10 Dec
Summary
- Shrimp exporters are shifting to ready-to-cook and ready-to-eat products.
- This move aims to increase profit margins and reduce commodity dependence.
- A Production Linked Incentive scheme supports this strategic diversification.
Indian shrimp exporters are increasingly focusing on value-added products such as ready-to-cook (RTC) and ready-to-eat (RTE) options. This strategic shift is driven by evolving global demand trends and heightened competition in traditional frozen raw shrimp markets, which are experiencing price pressures and stringent quality standards. The move is intended to enhance profit margins and reduce dependence on commodity-grade exports.
The strategy also aims to tap into the growing consumer preference for convenience foods in key markets like the US, Europe, and East Asia. Value-added exports fetch higher prices, help build brand identity, and foster long-term customer relationships. Government support through a Production Linked Incentive (PLI) scheme is instrumental, encouraging substantial investments in modern processing, packaging innovation, and branding efforts by leading companies.
Several major exporters are expanding capacities to cater to quick-service restaurant chains and private-label retail segments abroad, availing PLI benefits. This diversification aligns with India's broader objective to capture higher value in global seafood trade and strengthen its competitive position. Even smaller enterprises are exploring value addition, recognizing its necessity for survival and improved financial stability in a challenging market.
