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The continuous fall in global shrimp prices coupled with the import duty hike on Artemia — the live feed used in hatcheries — seems to have put aquaculture farming in troubled waters.
The farm-gate price of shrimps is currently ruling almost ₹100/kg lower as compared to last year, resulting in higher production costs and profit margins. This has forced farmers to go for an early harvest.
Glut in the US
L Satyanarain, President, All India Shrimp Hatcheries Association, attributed the lower growth to the temporary glut in the US — one of the major buyers — due to the piling up of stocks. “It is not the issue of quality. How far it is going to improve profitability is the question. It cannot be like last year,” he told BusinessLine.
The extended winter in the US last year had led to an oversupply and there will be an improvement in prices only when the existing stocks are cleared. “We are expecting the rates to improve in October-November for the Christmas season,” he said.
On the Artemia issue, he said, it is a small shrimp used as live feed in shrimp farms and the government has raised its import duty to 15 per cent from the existing 5 per cent.
Initially, the decision will impact shrimp hatcheries and later on the farmers, leading to a rise in input costs.
The feed is imported from the US and more than 90 per cent of the requirement is met through imports. Its annual requirement in shrimp hatcheries is estimated at 260 tonnes.
However, the rise in the import duty of artemia may turn out to be a blessing for India as it offers opportunities for the country to start its commercial production.
PA Vikas, Subject Matter specialist (Fisheries) of the Central Marine Fisheries Research Institute, who has carried out extensive research on the Indian Artemia population, said that proper utilisation of salt pan reservoirs and abandoned hyper saline areas for Artemia farming could help address the import crisis.
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