Shrimp feed manufacturers are pushing for another price increase, sparking concerns among aqua farmers who already grapple with rising production costs and a struggling sector. This potential hike follows earlier efforts by feed companies to boost profits, a move farmers warn could cripple the industry if prices aren't managed. The Chief Minister, N. Chandrababu Naidu, has urged the central government to intervene, highlighting the sector's vulnerability.
The Andhra Pradesh government, however, has attempted to cushion the blow by introducing a 'dynamic pricing system' for aqua feed. This new approach has reportedly already led to a reduction of approximately Rs 4,000 per tonne in feed costs, offering some respite. Farmers typically require at least one tonne of feed per acre for shrimp cultivation.
Farmer Strain and Political Sparring
Aqua farmers are voicing their distress, with some associations suggesting that the repeated attempts to increase feed prices, coupled with unremunerative prawn prices, could lead to farmers abandoning shrimp cultivation altogether. This, they fear, could trigger a wider collapse of the aquaculture industry in the state. The issue has also become a political football, with former Chief Minister YS Jagan Mohan Reddy criticizing the current administration for perceived inaction.
Read More: Carrot price war: Supermarkets sell carrots for 5p, farmers worry
Broader Economic Headwinds
The domestic price pressures are amplified by significant external challenges. Chief Minister Naidu has repeatedly flagged the crippling impact of recent tariffs imposed by the United States on shrimp exports, estimating losses to the state's aquaculture sector at a staggering Rs 25,000 crore.
In response to these export-related losses, Naidu has appealed to the Union Finance Minister, Nirmala Sitharaman, for central government support. His proposals include diversifying export markets beyond the US, seeking inclusion of shrimp in tariff exemption lists, and implementing policy interventions to mitigate the financial strain.
The Chief Minister has also advocated for increasing domestic consumption of aqua products. He pointed to India's per-capita seafood consumption of 12–13 kg per year, significantly lower than the global average of 20–30 kg, suggesting a substantial opportunity for market growth. Naidu has called for national-level decisions to safeguard farmers and has even proposed measures such as a ₹100 crore corpus fund, the establishment of cold storage facilities, and seafood markets to promote domestic consumption.
The crisis reportedly affects nearly 2.5 lakh aqua farmer families and indirectly supports around 30 lakh individuals dependent on allied industries, underscoring the broad economic implications of the sector's current difficulties.
