Andhra Pradesh Shrimp Farmers Navigate Turbulent Times Amid Rising Costs and Intense Competition

by Fishery News
Published: Last Updated on

The landscape of Andhra Pradesh’s East and West Godavari districts is dominated by shrimp tanks supplying fresh produce to international markets. Although aquaculture initially bolstered the local economy, the industry is currently grappling with economic challenges. Introduced in the mid-1990s as an alternative to traditional crops, shrimp culture prompted many farmers to convert their lands into shrimp tanks.

However, the aqua farming sector is facing a crisis due to escalating costs and intense global competition. Soaring expenses, encompassing feed, medicine, seed, labour, land lease, and electricity charges, have placed a significant burden on shrimp farmers. Despite the substantial increase in overall expenditure, the selling price of shrimp has not seen a corresponding improvement.

Farmers express their distress, citing the worst three years in recent memory, where they struggle to break even. The situation has prompted some farmers to abandon shrimp farming, selling their lands to cover losses. In response, the Andhra Pradesh government attempted to support shrimp farmers by setting remunerative/minimum support prices (MSP), mandating that exporters purchase crops from farmers at these rates.

Challenges persist as exporters reportedly reduced prices even after the government’s announcement. The global market faces intense competition, with Ecuador emerging as a strong competitor, flooding international markets with lower-cost shrimp. Ecuador’s increased production, from four lakh tonnes to 1.2 million tonnes in five years, has added pressure to the industry. Shrimp size, crucial in determining market value, remains a significant factor, and the uncertainty in prices exacerbates the predicament for Andhra Pradesh shrimp farmers.

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