Shrimp exports under threat

Importers favour low-cost shrimp from Thailand, China

The country's shrimp exports are facing a serious threat from low-cost Litopenaeus Vannamei shrimp produced in countries such as Thailand, China, Indonesia and Vietnam. Most of the shrimp importing nations, especially the US, prefer Vannamei shrimp to Indian Black Tiger variety in the 21-25 segment (1 kg consists of 21-25 shrimps) because of the former's lower price tag.

The arrival of this shrimp in the global market has seriously hit Indian exports, which is already reeling under pressure due to the rupee appreciation.

According to Seafood Exporters' Association of India (SEAI), the average per kg price realisation of Indian shrimp has gone down in all varieties during the last two-three years. The average price of Indian shrimp in the 21-25 segment has gone down to Rs 399 from Rs 495 in 2005-06.

A J Tharakan, president, SEAI said thanks to the low cost of production in Thailand, Vietnam, Indonesia and China, these countries could offer the product at much lower prices, threatening Indian exports. The average cost of production of Vannamei is Rs 90 a kg while that of Black Tiger is over Rs 160.

The issue has become serious as shrimp was India's major item in the export basket, he said. The commodity has always fetched a higher unit value compared with other products such as frozen fish, cuttlefish and squid.

Frozen shrimp contributes more that 53 per cent of the country's export earnings from marine products. Of the total export receipts of Rs 8,363.53 crore in 2006-07, Rs 4,506.08 crore was from shrimps alone.

The country produces 150,000 tonnes of shrimps a year that mainly comprise Monodon (Black Tiger), Indicus (white) and Macrobrachium Rosenbergii (fresh water scampi) species. China produces 650,000 tonnes, Thailand 450,000 tonnes, Indonesia 400,000 tonnes and Vietnam cultures 350,000 tonnes. Vannamei accounts for 90 per cent of the global shrimp aquaculture.

Tharakan said the government should allow Vannamei culture in the country in order to compete with other Asian nations. In spite of repeated pleas from SEAI, the government has not allowed aquaculture in this species citing ecological issues.

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IN TROUBLED WATERS

Most of the shrimp importing nations, especially the US, prefer Vannamei shrimp to Indian Black Tiger

The average cost of production of Vannamei is Rs 90 a kg while that of Black Tiger is over Rs 160

Vannamei accounts for 90 per cent of global shrimp aquaculture

Shrimp contributes over 53 per cent of earnings from marine products