Shrimp prices fall Rs 30/kg

Despite a steep drop in the production of shrimp during the second crop season, the prices have fallen by Rs 20-30 per kg in Andhra Pradesh.

Prices in the international market have crashed as countries like China, Thailand, Vietnam and from the Middle East have dumped huge shrimp products in the US, Japan and European markets.

Consequently, shrimp exporters in Andhra Pradesh are not in a position to pay more prices to shrimp farmers in spite of low production in the second crop season, U K Viswanadha Raju, president, Seafood Exporters' Association of India, Andhra region, told Business Standard.

The second shrimp harvesting, which started from November 1 in the state yielded only 10,000 tonnes as against the normal 25,000 due to uncongenial weather and heavy rains.

Moreover, the quality of shrimp and size were also not up to the mark adversely affecting the value in the international market. Paradoxically, the prices of shrimp have fallen despite the drop in production in the state.

The estimated loss due to the fall in shrimp yield in terms of money is as much as Rs 200 crore. Currently, exporters are paying Rs 250-260 per kg for 30 count, Rs 175-180 for 40 count, Rs 140-145 for 50 count, Rs 110 for 60 count and Rs 70-90 for 70 and below count. The prices are Rs 20-30 lower than those some months back, Raju said.

"The bad weather conditions resulted in about 70 per cent of the produce falling under 50-70 count and fetching only Rs 110-140 per kg. Further, the US government has imposed an antidumping duty of 10.54 per cent, and the European Union countries are rejecting on grounds of antibiotic residues. For the Japanese importers, the Indian shrimps are muddy and smell moldy. These are some of the factors denying the local shrimp farmers a reasonable price," he said.