November 25, 2013

 

India's shrimp prices down 15% due to weak demand
 

 

After reaching a peak of US$10/kg less than a month back, shrimp prices in India has declined by about 15% due to weak global demand.

 

"The shrimp prices have plunged to US$8.48/kg due to declining demand in the international market. This rate is likely to continue as of now", said Manoranjan Panda, vice president of the Odisha Shrimp Farmers Association.

 

Odisha produces Black Tiger shrimp, a major export item valued for its significant demand in countries like Japan, UK and US.

 

"However, the demand for Indian shrimp has come down because of high domestic prices and good harvest in other countries", said Gora Chand Mohanty, president of the Sea Food Exporter Associations of India- Odisha region.

 

A couple of weeks ago, the shrimp prices in the state jumped to US$10/kg, a 200% rise compared to 2012, due to short supply in the aftermath of severe cyclonic storm Phailin and subsequent floods in coastal districts.

 

Many farmers could not reap any financial gain from the price as more than 2,000 hectares of shrimp culture ponds with a combined production capacity of 3,000 tonnes were damaged in the twin calamities.

 

The shrimp farmers estimated the total loss at INR350 crore (US$56 million) due to devastation wreaked by Phailin in Ganjam, Puri and Jagatsinghpur districts and floods in Balasore district. The undivided Balasore district on north Odisha coast accounts for about 80% of total shrimp farming.