Analysis
about the author
F
ish, and this includes shrimp,
is India’s single biggest
export amongst all agriculture
commodities. Within this
broad category, shrimp is
the most dominant product, and being the
most traded fishery product worldwide, its
performance in our agriculture economy
too is heavily export dependant. More than
90% of our shrimp produce is exported, the
major destinations being the USA and China
with 42% and 25% of supplies respectively.
Other major markets are the EU, South East
Asia and Japan. With COVID having hit
the entire world, the US, China and Europe
perhaps more severely than several other
parts of the world, our major export markets
are all but shut. With global transportation
disrupted, the product has no means to reach
the markets. Nearly three million people
engaged directly and in allied activities of
shrimp industry face a looming disaster.
While the corona virus has adversely
impacted all sectors of our economy, the
negative impact is more severe in Fisheries
and Aquaculture. By its very nature the
product’s harvest has to follow a biological
cycle. It is highly perishable and cannot be
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Shrimp
Industry
Moving Ahead
in Difficult Times
stored over a long period of time. Being the
of export of fish and fish products was US$
second biggest global fish producer, India
6.7 billion which is about `46,589 crore. At
commands a prime position in the global
US$ 4.61 billion or say `31,850 crore, shrimp
fish trade. During the year 2018-19, the value
comprised 70% of the total value of exports.
Exactly ten years back, i.e. during the year
2008-09 the total value of export of shrimp
was a mere US$ 839 million or `3779 crore.
This translates into an increase of 740% and
450% in Indian Rupee and US Dollar terms
respectively in only one decade. One cannot
think of any other commodity which may
have demonstrated such a steep growth in
export performance, or even anywhere near
to it. The prognosis for the financial year
2019-20 had been very encouraging, and
Mr Tarun Shridhar loves good
so has been the performance till the virus
intelligent humour. He enjoys
hit. Though official figures are as yet not
hilarious puns, word play and witty
available, industry sources have estimated
repartees. Nikos Kazantzakis, JD
the value of shrimp exports to have been at
Salinger, Amitav Ghosh, Mohsin
an all time high of approximately `40,000
Ahmed, Mohammad Hanif,
crore.
Shreelal Shukl, Hari Mohan Jha
During this decade India has come
and PG Wodehouse rank among
to dominate the global shrimp market
his favourite authors.
by emerging as its biggest exporter. We
AGRICULTURE TODAY May 2020
command 27% of the world shrimp market
while the distant second Ecuador has 16%
share. As a result shrimp aquaculture, along
with its supporting and allied activities, has
come to play a very dominant role in the
economies of the coastal states. In fact,
in large tracts of rural areas in these states
shrimp has become an instrument of
economic prosperity.
According to the sources in the Society
of Aquaculture Professionals (SAP) and All
India Shrimp Hatchery Association (AISHA),
shrimp stocks to the tune of 1,50,000 metric
tonnes valued at around ₹3500 crore are
ready for harvest but the farmer is in a state
of helplessness. In addition shrimp seed to
the tune of ₹500 crore is available with the
hatcheries, ready for supply. The processors
and exporters are simply not procuring the
product; they too are helpless. Labour non-
availability coupled with closure of market
access obviously leads to complete or partial
shutting down of processing units. The
existing cold storage capacity is bursting at its
seams, so even building an inventory is not
possible. And it is not only how the situation
unfolds here but the trajectory of COVID
in the importing countries which would
influence the future of shrimp aquaculture
May 2020 AGRICULTURE TODAY
and industry in India.
February and March are the peak months
for stocking of seed in the farms/ponds by
the farmers. Therefore, the hatcheries too
are at their peak of production during this
period. If this was not bad enough, in certain
parts the stocking schedule got pushed to
March/April on account of extended winter.
The timing could not have been worse. The
initial period of the lockdown disrupted
the supply chains all across the country.
As a result the farmer lost out on seed
procurement and the hatcheries got saddled
with stocks sans any buyers. And where the
farmers managed to procure and stock the
seed before the lockdown, it is the problem
of obtaining feed which seriously impaired
the farming activity. Though fish and shrimp
have been exempted from the lockdown, it
was too late by the time these instructions
percolated down. Such exemptions and their
implementation are not able to address the
complexities of the production and supply
chain such as regular requirement of ice,
farming equipment, food supplements, fish
meal etc.
Even after having attained global
leadership in shrimp trade, paradoxically
we are wholly dependant upon import of
Mr Tarun Shridhar is former
Secretary, Ministry of Fisheries,
Animal Husbandry and Dairying,
Government of India
brood-stock for production of seed for
farming. Nearly 80% of the brooders are
sourced from Hawaii and Florida. If trade
does not resume full swing in the next thirty
days or so, our hatcheries will not be in a
position to produce seed for the next season
of stocking. Farmers would have little choice
but to dry up their ponds; a situation we must
avoid to guard and retain our position as the
undisputed global leader of shrimp trade.
The government through the Marine
Products Exports Development Authority
(MPEDA) or any other agency can
coordinate, facilitate and may be integrate
the produce of all our farmers and make
special arrangements of its transportation to
the important international markets.
Some quick interventions are: a)
tweaking the guidelines of aquatic quarantine
to ease import and licensing conditions; b)
automatic renewal of hatchery and farm
licences to avoid further disruption; c)
easy access to credit for the next crop; d)
insurance cover; e) reduction in import duty
for fish and shrimp feed, Artemis cyst, food
supplements, equipment etc.; f) sharing the
financial incentives on exports with the
primary producer viz. the farmer instead
of only the exporter; g) some subsidy on
fish and shrimp feed which is the major
variable cost in shrimp farming and hatchery
operations.
A conscious policy is called for to extend
the benefits and incentives available to crop
farming to the entire gamut of aquaculture.
This would further propel our shrimp
production and encourage investment in
creating our own breeding facilities thus
reducing our dependence on imports for the
primary input i.e. the brood-stock.
A production growth of 800% plus over
10 years is a story dreams are made of. Let us
not allow corona virus to shatter this dream.
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