Shrimp hatcheries suffer huge losses

Shrimp hatcheries in the state have suffered a loss of Rs 4-5 crore this season due to lack of demand for shrimp seed in the state.

Initially, we expected good price for shrimp seed during this season. But, because of several reasons, seed consumption has come down by 50-60 per cent compared to the last season in the state.

As a result, price on each seed has fallen by 4-5 paise, M Sudarsan Swamy, president of All India Shrimp Hatcheries Association told Business Standard.

According to seafood industry sources, the reason for the low demand for shrimp seed is the continuing anti-dumping duty imposed by the US on Indian shrimp.

Consequently, the area under the aqua culture cultivation has shrunk by 15-20 per cent. Another reason for the falling demand for shrimp seed is the Andhra Pradesh Government ban on shrimp harvesting in Kolleru lake. Ponds spread on as much as 8,000 acres have remained unutilised for shrimp cultivation this season due to the ban.

Yet another reason for the fall in the demand for shrimp seed is the recent state government's drive against illegal encroachment of Kolleru lake by 'big fish'.

The drive, while clearing the well-entrenched lake encroachers, has created a huge demand for fish. The dismantling of illegal fish ponds in the lake has created a demand-supply gap for fish. To meet the demand, several shrimp farmers have shifted to fish farming.

Apart from this, the dumping of shrimp seed in some areas of Andhra Pradesh by Tamil Nadu hatcheries effected the sale of local hatcheries to some extent.

Several new hatcheries, which came up in Tamil Nadu, are supplying seeds to farmers of south Andhra Pradesh, Sudarsan Swamy said. Using direct Chennai-Kolkata flight facilites, they are exporting shrimp seed to the West Bengal capital.

As a result, exports to Kolkata from AP have fallen to 300 million seeds from 600 million last year.