To address the issue, the government has developed a multi-faceted marketing strategy. Among the activities included are period seafood festivals and branded retail outlets.

A total of 4.81 million tons of fish were produced in Andhra Pradesh in 2022. As compared with 2021, this represents an increase from 4.62 million tons. The average annual increase for fish production in Andhra Pradesh from March 1999 to 2022 was 1,331.026 tons.

According to the government, Andhra Pradesh produced approximately 575,000 tons of marine fish in this fiscal year. Moreover, there are natural water bodies in this region consisting of 475,000 hectares of reservoirs, lakes, and ponds with 1 million tons of fish.

Additionally, shrimp are cultured up to 2 million tons per year, resulting in 5.2 million tons of fish, shrimp, and aquaculture products per year. In contrast, shrimp are mostly exported and consumed locally in small quantities. About 1.5 million tons are exported each year, compared to just three to four hundred thousand tons consumed here. 

Fisheries Department Joint Director VV Rao said that “without increasing internal consumption, aquaculture entrepreneurs will suffer from processors and buyers”.

“People are avoiding chicken for various reasons because the cost of a kilo of mutton is around US $12,” he added.

Raghuram from Bhoomi Organics said, “There is a high level of hormone use in chicken and milk today. Several health issues are caused by these contaminants, including hormonal imbalances and polycystic ovarian disease (PCOD). As a result, all of these issues have penetrated the society and are affecting the next generation.”

He argues that fish that thrive in natural water bodies are natural, healthy, and also affordable.

“Seafood, which is nutrient-rich and natural, is an excellent alternative,” he added.

The Fisheries Department is already working on the progress of the project. Under a hub-and-spoke model, “Fish Andhra” retail outlets are being established throughout the state. A total of 26 hubs are being constructed, while three are already operational, and the number of retail outlets will be increased to 4,000 by March next year.

Furthermore, there will be a variety of seafood options available, including live and packed seafood, and entrepreneurs can take advantage of attractive subsidy schemes and training options to open outlets.

In terms of fish production, Andhra Pradesh has far surpassed other states. And among Indian states, Andhra Pradesh contributes the most to fisheries. Directorate of Fisheries data reveal that India is exporting more fish abroad while relying heavily on Andhra Pradesh to meet its domestic needs. 

Moreover, exports from Andhra Pradesh to other states have been increasing constantly. A domestic market could prevent fish from being exported, however, if the Government is able to create one.

“A major part of Brazil’s shrimp was exported to other countries, but the domestic market was improved to the extent that it no longer necessitated exports,” said Fisheries Commissioner K Kanna Babu. While 75 percent of shrimp in India is produced in the southern state, less than five percent is used in Andhra Pradesh. Thus, Andhra Pradesh could be encouraged to further develop by following the example of Brazil. 

Jaber Bin Abdul Bari
Department of Oceanography, NSTU

The post Andhra Pradesh of India, unveils bold plan to foster domestic seafood market appeared first on Seafood Network BD.

Manoj Sharma, general manager of Gujarat-based farm Mayank Aquaculture said, it is 32% lower than in the same period of last year.

The price issue has hit India’s shrimp farming industry in the second half of 2022. Situation turns out to be severe, even with the local government initiatives to decrease the feed price by setting it to a minimum range.

An empowered committee was constituted in Andhra Pradesh on 14th October 2022 to sort out issues related to the aquaculture sector, mainly supply of feed, feed rate, and purchase rates. It announced it would lower the cost of feed inputs by INR 2.60–2.80/kg ($0.03/kg) and set a minimum price of INR 240 ($2.90)/kg for 100-count shrimp to reduce the market’s ongoing decline.

Most recent published data of “pricing” by Aquaconnect and Aqua Exchange suggests that the committee’s efforts have yet to achieve an apparent success, most of the counts have “rates” way below than the average for the season.

According to Sheraz Anwar, director of Abad Fisheries, Vannamei prices have been declining from mid-September as Ecuador was pumping every market already suffering from high stock.

Now in the current situation, farmers are totally disregarded. Every party attempts to buy shrimps for less. When a crop is lost, nobody sheds a tear. No crop insurance exists. There is no initiative to save them from imminent extinction. They have no access to loans, and the financiers who act as intermediaries charge them high-interest rates.

With the unexpected decline in the shrimp price of Andhra Pradesh, farmers are facing a loss of Rs. 1 lakh per acre; nevertheless, the cost of cultivation has also gone up in the last 3 years.

According to the latest data, Andhra Pradesh has been generating about 6.34 million tons of shrimp annually. The decrease in demand for shrimp from importing nations has caused a dip in production prices. For the past months, the issue has continued. Market prices for shrimp have decreased by at least Rs 100 per kilo. In order to compensate for the fall in exports, traders have also started buying at reduced prices.

The winter crop stocking has been adversely affected by lower farmgate prices. Farmers are incredibly concerned by the rapid escalating production costs and decline in farmgate prices. If the scenario persists, it will affect the summer crop stocking.

The smaller 60-100 count shrimp are currently the most popular. Increased export from Ecuador along with recession in USA and Europe lead to a minimal demand situation for importing large count shrimp at this moment.

Gujarat, another shrimp farming state in India, has reportedly continued to decline over the past four weeks. According to Aquaconnect, Gujrat produced shrimps are now available for as low as INR 350/Kg for 30 counts, INR 300/kg for 40 counts, INR 260/kg for 60 counts, INR 220/kg for 80 counts, and INR 200/kg for 100 counts of the most miniature shrimp.

It is evidently clear that the next 12 months or maybe more, are going to be very challenging for the Indian shrimp industry. Especially for Gujarat, considering that farmers in Andhra Pradesh may still produce 60 to 70 counts, which is close to breaking even or earning even 10 to 20%. Gujarat imports a bunch of other stuff, particularly seed, feed, and health products, and since COVID, input costs, particularly for feed, have increased by 27%.

As they have been for the majority of this year, India’s farmgate prices for medium-sized, 60-count shrimp remain significantly lower than those of fellow Asian suppliers Vietnam, Thailand and Indonesia.

Tariq Iqbal
Khulna, Bangladesh

The post Amid the crisis in demand, Indian shrimp prices closing the year with decline appeared first on Seafood Network BD.