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June 15, 2013

India

Over Production Lowers Prices in Andhra Pradesh

 

Presently, shrimp farmers in the state of Andhra Pradesh, India’s leading shrimp farming state, get $4.14 per kilogram for 40-count, whole Penaeus vannamei, at a time when exporters in the neighboring state of Tamil Nadu get $5.86 a kilo for the same product.  Processors in Andhra Pradesh say the price has fallen because of over production; farmers say the processors have colluded to keep the prices low so they can reap high profits in the export market.

 

In 2012, Andhra Pradesh shrimp farmers produced 160,000 metric tons of P. vannamei.  In 2013, they expect to produce 200,000 tons.

 

In other states—Tamil Nadu, Odisha (formerly Orissa), Gujarat, West Bengal, Kerala and Maharashtra—farmers receive higher, international prices for their shrimp than farmers in Andhra Pradesh, where a majority of shrimp processing and cold storage plants are in the hands of a few big exporters who are able to control prices.

 

Shrugging off the allegations leveled against them, D.B. Ravi Reddy, national president, Seafood Exports Association of India, said: “Due to over production, the farmers in Andhra Pradesh are coming forward to sell their produce at lower prices.  Normally, exporters offer rates according to the prevailing international prices.”

 

Tamil Nadu exports its shrimp to Japan where the prices are usually high in comparison to the USA and Europe.  Traditionally, exporters in Andhra Pradesh sell most of their shrimp in the USA and Europe.

 

Source: Business Standard.  Production Glut Hits Shrimp Farmers.  June 12, 2013.

 

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