Shrimp stocks in India are seeing a surge amid ongoing political chaos in Ecuador – a top seafood exporter.
Ecuadorian seafood companies have been experiencing supply disruptions since the prison break of two major drug trafficking ringleaders. Following the escape, President Daniel Noboa “ordered a nationwide manhunt,” as Bloomberg reports.
With organized crime on the rise in Ecuador, a number of industries have been experiencing difficulties, most notably shrimp exports.
“With the ongoing political situation in Ecuador and reports of the shrimp industry facing higher taxation, Indian firms have a chance to capture the supply shortfall,” said Kranthi Bathini, a strategist at Mumbai-based WealthMills Securities.
Now that Ecuador is facing higher taxation for seafood shipments, India may take over the market after years-long stagnation.
According to market reports, the chaos in Ecuador resulted in an 11% rise in shrimp stocks for Avanti Feeds Ltd., while Apex Frozen Foods Ltd. and Waterbase Ltd. marked a rise of 7% and 12%, respectively.
