Black Tiger shrimp prices fall by Rs 40-50 per kg

Prices of aquaculture Black Tiger (BT) shrimp have dropped between Rs 40 and Rs 50 per kg in the state.

The Seafood Exporters Association of India (SEAI) had announced higher purchase prices for BT shrimp two months back, but with the United States expected to levy some kind of preliminary duty on shrimp exports, seafood exporters are inclined to pay less for BT shrimp purchases. The US market constitutes 40 per cent of the total BT shrimp exports from the state.

Harvesting of BT shrimp had started recently in the coastal districts of Andhra Pradesh with the farmers being optimistic of a good yield this season.

SEAI, Andhra Pradesh region, had announced BT shrimp basic purchasing prices for 20 count at Rs 320 per kg, 30 count for Rs 290 per kg, 35 count for Rs 230 per kg, 40 count for Rs 200 and 50 count for Rs 140 per kg.

But now the seafood exporters are paying between Rs 40 and Rs 50 lower on each kg of shrimp on all counts of shrimp produces on these earlier announced purchase prices.

"Because of the anti-dumping duty case in the United States, from July 28 onwards we are expecting some percentage of preliminary duty on shrimp exports and we may well also be liable to attract duty retrospectively from April 28 on our exports to the US. Keeping this in mind we are paying reasonable rates which are Rs 40-50 per kg lower to the shrimp producers," Ch Rajgopal Chodary, vice-president of SEAI, AP Region, told Business Standard.

In the last four years, BT shrimp exports to the US market from the state have been gradually increasing and at present 40 per cent of the states' BT shrimp is exported to the US market.

"If the proposed duty is higher than our estimations shrimp purchasing prices in the state will fall further," he said.

"Taking advantage of the proposed US action levying duties on shrimp imports, other Indian shrimp importers like Japan and EU countries are also asking for reduction in shrimp prices," Chodary said.

"Shrimp exports to the US is going on as usual but exporters worry about what percentage of duty will be levied. We expect the US government to levy a duty of around five to six per cent. If it is more than that, exports will be hit heavily and due to this reason we have reduced the purchasing prices and are going slow on shrimp procurement also," a senior seafood exporter told Business Standard.