Indian seafood exports may show lower growth this fiscal as shrimp prices continue to remain low and cautious farmers go slow on production. While prices of shrimp, which dominates the seafood export basket, are down by 20% from last year, fear of white spot disease and lower prices had forced many farmers to go for partial harvest, resulting in small-sized shrimps, which fetch lower returns compared with the fully grown ones. “Lower prices have discouraged aquaculture farmers from going for more stocking in the farms for the next harvest, which will be done after a few months,” said S. Muthukaruppan, Former President of Society of Aquaculture Professionals.

Seafood exports had touched a record Rs.45,106 crore last year on the back of high prices and good production of shrimps. Shrimp production in the country scaled a new peak of 600,000 tonnes, making India the top shrimp supplier globally. “Following tightening of quality standards in the European Union, exporters were focusing more on the US market. The oversupply pulled the prices down,” said Muthukaruppan. The realization of export proceeds of shrimps nose-dived to hit the bottom-line, affecting stakeholders across the supply chain in the $5-billion seafood export market. The export prices of shrimps have plunged by more than 20% in the last couple of months because of increased supply from competing nations such as Vietnam, Thailand, and Ecuador. Exporters are saying there has been a sharp drop of $2 per kg (30%) in prices of key varieties, compared to last year.

The falling rupee has not been able to help much. Shrimp farmers, especially in Andhra Pradesh, are forced to harvest one crop against the usual practice of three crops annually. They are suffering huge losses and even suppliers of fish feed are bearing the brunt of the production squeeze. Hatchery owners are also likely to feel the heat.
According to a report by CRISIL Research, seafood exports will grow 17-18% this financial year, 500-700 basis points (bps) slower than the 23% and 25% rates in FY17 and FY18, respectively. The alarming condition of the aquaculture sector has prompted N. Chandrababu Naidu, chief minister of Andhra Pradesh, the largest shrimp producing state in the country, to seek the Centre’s help to come up with an action plan and stabilize procurement prices. The Centre has been asked to initiate steps to trade with new markets in Russia, South Korea and Australia to arrest further slump in prices. Exports to major markets have reportedly declined drastically because of issues related to antibiotic residues. The fact that India has emerged as the largest exporter of shrimps to the US has not helped in checking the price fall. In a letter to Union Commerce and
Industry Minister Suresh Prabhu, Naidu has sought a mechanism to eliminate intermediaries between shrimp producers, processors and exporters. Rising prices of fish feed, lime, bleaching powder, medicine, daily wages and energy costs and the drop in shrimp prices have added to the miseries of shrimp farmers in Odisha, too.

(Source : krishijagran)