As the daily confirmed pandemic cases get higher, the pandemic situation in India is very severe.
The harvest volume will decrease surely.
Due to the pandemic situation, like last year, there was a national lockdown in India, there is no workforce in the plant. India is one of the biggest suppliers of vannamei globally, and if the harvest is delayed, the whole vannamei market will definitely meet in a shortage.
The processing plant situation is poor.
The pandemic makes the workers less in the processing plant. Some factories have only 15-20% workers in the factory, delaying the preparation for the products. The existing orders of vannamei will take more time to get ready regarding the new orders.
Farmers may harvest early.
The farmers are afraid of the lockdown nationally because if there is a lockdown, they can hardly reach the plant, and it’s hard for them to harvest and take care of the vannamei. They may harvest the vannamei early, and this early harvest will get a small size vannamei. The problem is Indian’s primary market is the USA, and the USA’s main demand is big size. So the early harvest will make a significant influence on the shortage for the big size later.
The freight cost in India is also increasing; like in China, the freight rate stays high. Recently the freight rate even doubled. As the pandemic situation gets worse, the cost will grow again.
India vannamei has a significant share in the seafood market. If the supply meets the issue, the importers have to find options. The demand will go to Ecuador, Vietnam, Peru, China, Pakistan, Thailand like these countries. As for the price, the level is sure to be in a little decrease due to the oversupply of the raw material.. We believe the situation will be normal soon, and the price level will be stable.