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Boat Owners Report Losses as Shrimp Prices Plunge

INDIA
Tuesday, August 06, 2024, 06:50 (GMT + 9)

Visakhapatnam: Falling shrimp prices seem to be a cause of concern for the mechanized fishing sector in Vizag, Kakinada, Machilipatnam and some other places along the Andhra Pradesh coast.

Shrimp have become cheaper between 100 and 300 rupees (U$D 1.19-3.58) per kilo (depending on the variety). Mechanized ship owners report that exporters are undercutting prices, leaving them with huge losses. Exporters, however, said that Ecuador's surplus supply has driven down the price.

Anglers who resumed fishing in mid-June are returning with a good catch. Fishermen said each boat has returned with 400 to 500 kg of brown shrimp, some tiger shrimp, white shrimp and some varieties of fish. But the fall in prices is a brake for them.

Suraida Satyanarayana, general secretary of Visakha Dolphin Fishing Boat Operators Welfare Association, said most fishermen are disappointed as the price of shrimp has gone down.

"Seafood exporters have set the price of brown shrimp at 360 rupees (U$D 4.29) per kilo. In July 2023, brown shrimp was selling at 400 rupees (U$D 4.77) per kilo. Of the same Likewise, the price of tiger shrimp has dropped from 1,250 rupees (U$D 14.91) per kilo to 950 rupees (U$D 11.33) per kilo. The price of white shrimp has dropped from 400 rupees (U$D 4.77) per kilo. at 300 rupees (U$D 11.33) per kilo, which has caused boat owners to suffer a loss of at least one lakh rupees (U$D 127,698.50) on each trip," he said.

Seafood exporters prefer Vannamei shrimp due to high demand, he added.

"The value of seafood exports has decreased due to the decrease in the average export price of shrimp compared to the previous year. Our main markets for a variety of shrimp are the US, China, the EU and some other countries, where we are suffering due to oversupply from Ecuador and some other countries," said V Padmanabham, a seafood exporter in Vizag.

Marine products exports from Andhra Pradesh increased by more than six per cent in terms of quantity and decreased by more than five per cent in terms of value (in US dollars) of the product in 2023-24 compared to 2022-23. Andhra Pradesh shipped 347,349.32 tonnes of seafood worth Rs 19,406.15 crore ($2,367.6 million) during 2023-24.

AP contributed 19.18 per cent of India's seafood exports through various ports through Marine Products Export Development Authority (MPEDA) in 2023-24.

In 2022-22, Andhra Pradesh had exported 267,165.91 metric tonnes of seafood worth Rs 16,864 crore ($2,291.64 million)

"Demand for Vannamei, white-legged shrimp grown in aquaculture farms in Andhra Pradesh, has increased in the global market compared to sea shrimp for its mild and sweet taste, firm texture and culinary versatility," said Prasad Naik, director MPEDA assistant.

In the current situation, ship owners are not suffering losses and seafood exporters are not gaining either, he added.

Fishing is a labor-intensive industry and sometimes rough seas affect the catch. Like farmers, fishermen are victims, while exporters and consumers are beneficiaries, fish owners say

Mechanized boats. Seafood is much better than broiler chicken and red meat as it contains Omega-3.fatty acids and appears to be the most beneficial for heart health, they added.

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