Government intervention in the market has not worked, and the price of Indian shrimp has continued to go down

In mid-October, the local government of Andhra Pradesh state set up an industry "enabling committee" to oversee the production of South American white shrimp in a bid to stabilise the market by controlling feed costs and setting a minimum price. At its first meeting in Vijayawada on October 14, the committee asked the industry to reduce feed costs by INR 2.60-INR 2.80 ($0.03/kg) per kg of finished shrimp feed. The price of 100 shrimp (per kg) is also required to be at least INR 240 ($2.90)/kg.

However, more than half a month later, the committee's efforts have not achieved obvious results. According to Aquaconnect statistics, in the 44th week (October 31 to November 6), the price of raw materials in Andhra Pradesh did not increase significantly. The price of 30 raw materials was still INR 430/kg, 40 for INR 380/kg, 60 for INR 310/kg and 80 for INR 270/kg. 100 only INR 240/kg (below cost). Against the backdrop of a stronger dollar, shrimp prices are even weaker.

Sheraz Anwar, CEO of exporter Abad Fisheries, told UCN: "The purpose of the meeting is to stop the price falling, but if the market doesn't accept it, it won't work."

"If the price doesn't reverse, I'm afraid there won't be any more people to plant in the near future," complains Durai Murugan, managing director of Sea Gem Aqua Farm, an Indian shrimp farming company. "The government's efforts have been in vain."

"From an exporter's point of view, many of the problems are similar to those of previous years, but this year they are more severe. Weak demand in major global markets, high inventories in the United States and a lot of Ecuadorian orders flowing to the United States; Sales in China have slowed sharply and many factories are not functioning; European demand is also down and Indian shrimp are facing a 50 percent detection rate." Murugan said.

On the other hand, the price of Indian black tiger prawns is also falling. Manoj Sharma, general manager of Aquaculture company Mayank Aquaculture in Gujarat, said, "The price of black tiger shrimp has dropped by 35 percent recently, even less than the South American white shrimp, so farmers are not willing to grow fish without soil. Export demand for black tiger prawns is zero, and processing plants do not accept them. The price of large size black tiger shrimp has dropped by 100-120 per kg compared to the beginning of this year.