look news india
News India Live, Digital Desk: Crisil’s report on Friday states that Indians shrimp Exporters will see a slight 2-3 percent increase in revenue in this financial year (FY 26), as the rising prices and currency benefits have been better. Although the pressure on low value -added shrimp exports is expected to increase, Indian exporters have a competitive advantage compared to other Asian competitors such as China, Vietnam, Thailand and Indonesia in the value -added section, which face high tariffs, but enjoy more than one -third of market share in the US.
However, the amount of exports remains stableGi, because the US is likely to impose high tariffs and demand will be weak in major importing countries, as the recession in economic development will affect the income.
India exports about 48 percent of its production to the US. The mutual tariffs announced by the US, although currently stopped, will benefit South American exporters such as Ecuador, the largest shrimp exporter in the world. Indian exporters will have to face more competition from raw frozen and peeled frozen categories, which are low value enhancement and which are less beneficial.
According to the report, there will be pressure on the operational margin, as the tariff burden will be partially and slowly, as seen in the past, while exporters are looking for other markets and improving the offer through price promotion.
Credit profiles will continue to face challenges as long -term working capital cycles motivate the credit lines, which will, in turn, reduce the debt protection metric. However, the report mentions that capital structures are expected to be comfortable.
Himank Sharma, director of Crisil Ratings Himank Sharma said, “The situation became difficult for Indian shrimp exporters in the last financial year, as prices and competition increased after the US imposed a 5.77 percent compensatory fee.”
In this financial year, with the imposition of mutual tariffs by the US – while economic activity in other major markets like the European Union and China is dull – exporters will see stability in demand. Sharma said, “But the overall increase in revenue should be in less single digits in this financial year,” said Sharma.
In the last few financial years, the demand for global shrimp has been stable at 4 million tonnes (MT) and it is likely to be low in this financial year. Indian exporters currently have about fifth in the global market, while domestic production is seen stable at 1.2 MT, as non-profit global prices are affecting shrimp rearing and development.
Nagarjuna Alparthi, Associate Director, Crisil Ratings, said that “despite the increasing debt, the capital structure of shrimp exporters will remain healthy”.
Google Android 16 Beta: Pixel Theme will be launched soon, know what users will get new