Andhra exporters agree to hike purchase price of black tiger shrimp

Seafood exporters seek 100-day credit period though

Seafood exporters in the state have agreed to increase the purchase price of aquaculture black tiger shrimp if farmers offer them a 100-day credit period.

The move comes after the intervention of the chief minister, Y S Rajashekhara Reddy, to sort out the issues related to the prices of black tiger shrimp.

Members from the seafood exporters association and representatives of aquaculture farmers had on June 11 met the chief minister.

Aquaculture harvesting started last fortnight in the coastal districts of Andhra Pradesh and black tiger shrimp producers have been demanding higher prices for their produce during this season. Keeping this demand in mind, the government had convened a joint meeting.

Speaking to Business Standard, T Raghunadha Reddy, president of the Seafood Exporters Association of India (AP Region), said: "There is a lot of uncertainty in the export business due to the anti-dumping duty threat by the US government. Without knowing the new duty structure in the US and what prices will be offered by US shrimp buyers how we can increase the purchasing prices here?"

For the last few months seafood exporters association members have continued to buy black tiger shrimp at the same prices.

At present they are offering Rs 280 per kg of 20 count aquaculture black tiger shrimp and Rs 250 for 30 count BT shrimp, Rs 190 for 35 count, Rs 170 for 40 count, Rs 110 for 50 count, Rs 90 for 60 count, Rs 80 for 70 count and Rs 70 for 80 count shrimp.

"In the normal course, buyers in the US and Japan pay the exporter after 120 days but the exporters have been paying the material cost to the farmers at the aquaculture ponds itself. While we are investing huge amounts of money to purchase the black tiger shrimp from farmers we get paid by our customers only after three or four months," he said.

"If the farmers come forward to supply the material on credit basis, then exporters will pay higher prices compared to existing prices," he added.