March 4, 2005

Iran's shrimp industry under strain from state banks

An Iranian shrimp industry official said on Wednesday that the reluctance of Bank Keshavarzi (agriculture) to invest in the sector has created serious problems for shrimp farmers, stressing that the state banks owe several billion rials to shrimp farmers.

Ali Akbar Khodaei, secretary of Iran Shrimp Producers Association, said that once farmers are repaid their dues, they will be able to increase production by 30 per cent in the current crop year.

He stressed that the government owes rls 60 billion (nearly $6.8 million) to shrimp farmers, stressing that the decline in international shrimp prices as well as the fixed foreign exchange parity rates in Iran have created numerous challenges for the once lucrative industry.

Seafood exports exceeded $80 million during March 2004-2005, showing a 10-per cent increase against the figure for the previous year.

Some $25 million worth of caviar as well as $30 million worth of shrimps were exported during this period. The remaining $25 million was earned from fish exports.

Per capita seafood consumption reached 6.2 kilograms by March 2004. Seafood consumption has grown by 13-fold since the 1979 Islamic Revolution. Per capita seafood consumption is expected to hit a record 10 kilograms by the closing year of the fourth five-year plan (2005-2010).