India’s shrimp industry is entering a structurally stronger phase as global pricing normalizes and long-standing supply distortions begin to unwind. A key factor is the erosion of artificial cost advantages once held by Ecuador, which had previously expanded its market share through unsustainable subsidies on electricity, tax waivers, and preferential financing. Deteriorating fiscal conditions have forced Ecuador to rollback these subsidies, restoring global pricing discipline.
The operational outlook for Indian producers has also improved, with the industry moving past the “worst margin environment in a decade” seen in FY23-24. Stable raw material prices and eased supply tightness have corrected feed prices, restoring profitability for farmers and manufacturers. Export volumes, which were weak throughout 2023 and 2024, showed a strong rebound by mid-2025 despite volatile demand in China and the U.S..
Trade prospects are further bolstered by proposed free trade agreements with the UK and the European Union. Indian producers are focusing on scale, traceability, and value chain integration to solidify their position. The industry’s annual export share is expected to remain above 40%, reinforcing India’s role as a primary global anchor supplier for shrimp.