Indian vannamei price is always firm in 2021. At the beginning of the second quarter of 2021, the whole vannamei industry predicts that Indian will still take the most significant share of the vannamei market in the second quarter. But the pandemic outbreak changed the situation of the Indian vannamei market. As a leading seafood exporter and supplier in China, Ocean Treasure sees the trend.
The outbreak pandemic in India put tremendous pressure on the Indian vannamei industry. The workers in the processing plant are only 30% which makes the whole processing line under huge pressure to finish the products on time. So the regular supply volume is less than before. Also, for the transportation, packaging, and raw material collecting, the lockdown affects these processes.
Early harvest, small size oversupply
For vannamei farmers, the serious condition pushed some of them to start the early harvest since the total lockdown will make it hard for them to take care of the vannamei. If they do not have the early harvest, they will lose more. And also, their vannamei is hard to reach the factory during the lockdown. Farmer’s early harvest makes the small size raw material oversupplied, and the price decreased. After the fishery department introduces a benchmark price mechanism to prevent market manipulation, the price tends to be stable.
The big size meets significant shortage gradually; importer tries to seek for options
The early harvest will cause a significant size shortage in the future. Also, the collecting of big-size raw materials is more challenging than before. The daily volume for the big size is even less than half of what it was before the pandemic outbreak. Most of the factories are busy preparing the orders for the USA market. Due to the slow supply of the raw material and fewer workers in the factory, many orders have been delayed.
Importers predict that the situation in India will last for a while. So they turn to put more orders in Vietnam and Ecuador, which makes the price in these two countries increase so fast. They are full of orders until the end of June.
The farming cost increase and the workers are less, India vannamei needs a solution.
The farming cost of vannamei also increased, especially the oxygen machine. Many farmers can hardly keep their business. We hope that situation in India will be under control soon. For factory and processing plants, the quickly processed products or the HOSO products can be the solution for the recent lack of workers.
Even the raw material is oversupply, but the product’s final price is still firm since the demand is still okay.
Vannamei price will have a global increase.
In the third quarter, the raw material price of vannamei will be globally increasing. The lack of supply from the Indian market, the significant demand turns to Ecuador and Vietnam, all these trends will make the vannamei price increase perdition. Meanwhile, the catering industry is recovering from the pandemic, and this will push the demand higher. We should keep an eye on India’s next season. The new season will start from September to November. We believe at that time, the situation in India will be totally under control. If not, that will be another story.