March 3, 2006

Shrimp hatcheries in India faces uncertain future

India's once booming shrimp hatchery industry is facing uncertain times as costs of production rise while buyers are in short supply.

A strong indicator of impending doom for the industry is the price of seed, which has fallen to a fifth of its price last year.

Hatchery owners used to buy male and female shrimps and take up spawning in the hatchery before the development of shrimp seed.

Now, the industry is facing competition from other seed technologies. Further, its effectiveness is questionable as seed shrimps die soon after being released into aqua farms due to its low ability to adapt to the new temperatures and salinity, making aqua farmers wary of purchasing such seed from the hatcheries.

Anti-dumping regulations imposed by the US on Indian aqua farmers have also taken its toll on the shrimp hatcheries, especially in the area of East Godavari, where 72 of the 263 hatcheries in India are located.