September 13, 2023
India to see up to 20% drop in shrimp production in current fiscal year
India's shrimp production is set to decline by 15 -20% in the current fiscal year as a sharp fall in global prices and sluggish exports have discouraged aquaculture farmers from raising the output.
The anticipated plunge in output and slowdown in exports have happened at a time when the Indian seafood sector is gearing up for accelerated growth with both houses of the country's Parliament passing the Coastal Aquaculture Authority (Amendment) Bill 2023,last month.
Frozen shrimp comprised nearly 70% of a record $8.09 billion worth of seafood exports from India in FY2023.
However, aquaculture farmers are stocking less in their farms as the drop in prices in the backdrop of increasing production costs has affected their profitability.
"The global prices of shrimp of big sizes are down by 25 to 30% while the rates of smaller sizes have fallen by 15 to 20%,'' said V. Balasubramaniam, general secretary of the Prawn Farmers Federation of India.
Only Andhra Pradesh saw actively productive farmers. The state accounts for around 70% of aquaculture shrimp production in the country.
"The situation is bad in other shrimp producing states such as Gujarat, Odisha, Tamil Nadu and West Bengal,'' Balasubramaniam added.
The stocking of shrimp in farms was moderate in the first half of 2023. But with persisting low prices, the farmers have gone slow on production for the second half.
"The wages, cost of power and feed have all gone up and unless the farmers get a remunerative price for their produce, they will incur loss,'' pointed out S. Muthukaruppan, former president of the Society of Aquaculture Professionals (SAP).
As per data from the Ministry of Commerce, seafood exports for the April to June 2023 period was $2.37 billion. This is lower by 13% year-on-year.
- Moneycontrol