The Andhra Pradesh government has urged the Central Government to introduce policy measures to support the aquaculture sector, citing rising shrimp feed production costs and increasing volatility in global seafood markets. During a meeting with Union Finance Minister Nirmala Sitharaman, Chief Minister N. Chandrababu Naidu highlighted the challenges faced by shrimp farmers and requested a comprehensive framework to improve the long-term sustainability of the sector.
Aquaculture is one of Andhra Pradesh's key economic sectors, with shrimp farming contributing significantly to seafood exports and rural livelihoods. However, industry stakeholders have been facing increasing pressure due to higher input costs and fluctuations in international demand.
Shrimp Feed Raw Material Prices Have Increased
The Chief Minister informed the Union Finance Minister that the prices of several key raw materials used in shrimp feed manufacturing have increased substantially.
According to the state government:
- Fish meal prices have increased from ₹1.55 lakh per tonne to ₹2.40 lakh per tonne.
- Fish oil prices have risen from ₹2.80 lakh per tonne to ₹4.40 lakh per tonne.
- Soy lecithin prices have increased from ₹68,000 per tonne to ₹1.10 lakh per tonne.
The increase in these essential feed ingredients has reportedly raised shrimp feed production costs by around ₹25,000 per tonne, resulting in a significant increase in input costs for shrimp farmers.
Rising Production Costs Impact Shrimp Farmers
The Andhra Pradesh government stated that the sharp rise in shrimp feed prices has increased the overall cost of shrimp production by more than 20% this year. Feed accounts for a major share of operational expenses in shrimp farming, making fluctuations in raw material prices an important concern for both farmers and feed manufacturers.
Higher production costs, coupled with uncertain international market conditions, continue to create financial challenges for the aquaculture sector.
Andhra Pradesh Seeks Long-Term Policy Support
To address these challenges, the Chief Minister requested the Central Government to consider policy interventions aimed at stabilising the prices of raw materials used in shrimp feed production.
He also urged the Centre to develop an institutional framework that can help safeguard the aquaculture industry from fluctuations in global seafood demand. According to the state government, such a framework could strengthen the resilience of the sector and improve its long-term competitiveness.
Focus on Domestic Market Development
Apart from addressing feed costs, Andhra Pradesh also proposed measures to strengthen the domestic aquaculture market.
The state recommended promoting domestic consumption of shrimp and other aquaculture products, encouraging the formation of Farmer Producer Organisations (FPOs), improving market linkages for aquaculture farmers, and supporting branding, processing, and retail integration for seafood products.
These initiatives are intended to improve market access and create additional marketing opportunities beyond export markets.
Proposal for Andhra Pradesh Prawn Producers Coordination Committee
The Chief Minister also requested financial assistance from the Central Government for establishing the Andhra Pradesh Prawn Producers Coordination Committee. The proposed body is expected to facilitate better coordination among stakeholders and support the development of the state's shrimp farming industry.
Looking Ahead
India remains one of the world's leading shrimp-producing and exporting countries, with Andhra Pradesh contributing a significant share of national aquaculture production. As feed costs continue to rise and global market conditions remain dynamic, industry stakeholders are seeking policy measures that can improve cost competitiveness and strengthen market stability.
The proposals submitted by the Andhra Pradesh government highlight the importance of coordinated policy support for ensuring the sustainable growth of the country's aquaculture sector while addressing the challenges faced by shrimp farmers and allied industries.
Key Highlights
- Andhra Pradesh has sought Central Government support for the aquaculture sector.
- Prices of fish meal, fish oil, and soy lecithin have increased significantly, raising shrimp feed production costs.
- The state says shrimp production costs have increased by more than 20% this year.
- Andhra Pradesh has proposed policy measures to stabilise feed raw material prices.
- The state has also sought support for domestic market development, FPO formation, branding, processing, and the establishment of an Andhra Pradesh Prawn Producers Coordination Committee.
