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June 22, 2015

India

Demand for Small Sizes

 

Farm-gate prices for Penaeus vannamei are steady, but low, with demand strongest on the smaller sizes.

 

“The main issue in India seems to be the shortage of small sizes, 60 counts and smaller,” said Chaipat Kunapiwatkul, business development manager with Siam Canadian Group, a Bangkok, Thailand-based frozen seafood supplier.

 

“Those sizes are currently in great demand from China and Vietnam, but the packers are struggling to procure the raw material.  The only chance for farmers to harvest smaller sizes anytime soon would come only if they foresee that there would be a heavy monsoon.  Otherwise they will be waiting for shrimps to grow.”

 

Harvests are now focused on 30, 40, and some 50 counts per kilogram shrimp, the large sizes, he said.

 

“Indian farmers usually concentrate on harvesting shrimp with large sizes unless there are some problems with crops, which force them to do early harvest.  It’s always their mentality,” he said.

 

The focus of the farmers, however, is to try and grow the large sizes.  “Due to other disease problems this year most of the farmers could not cross 20 count, so we are expecting a huge demand for big sizes like 21/25 up in near future.”

 

“The packers are anticipating more inquiries from North America and Europe since those markets generally use more of larger sizes.  However, in reality, the demand from those markets still remain quite gloomy,” he said.

 

Stocks are said to be high in the USA, with the exchange rate between the dollar and the euro a big obstacle for sale to Europe.  For Japan, the weakness of the yen compared to the dollar is also an issue.

 

Source: Undercurrent News [eight free news reads every month].  Editor, Tom Seaman.  India Shrimp Packers Struggle to Meet Demand for Small Sizes.  Tom Seaman  (undercurrent@undercurrentnews.com).  June 19, 2015.

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