Andhra Pradesh’s aquaculture farmers are facing anxiety over potential increases in shrimp feed prices, a critical input cost, driven by feed manufacturers citing rising raw material costs.
Shrimp feed accounts for 60-65% of the total cost of shrimp farming. Manufacturers are seeking to raise prices by ₹8-10 per kg, potentially impacting farmers’ profitability, especially smaller operators. The increase is attributed to higher prices of key ingredients like fish meal, soybean meal, and other protein sources, influenced by global market conditions and domestic supply chain issues.
Farmers express concern that these price hikes come at a crucial time, as the current crop cycle is underway. They fear reduced margins and potential losses if they cannot pass the increased costs onto buyers. The Andhra Pradesh Shrimp Feed Manufacturers Association justifies the increase by pointing to a significant rise in raw material costs over the past year, with some ingredients experiencing price jumps of 30-40%.
The situation is complicated by the fact that shrimp prices in the international market have remained relatively stable or have even declined slightly. This limits farmers’ ability to absorb the increased feed costs. Farmers are requesting government intervention to regulate feed prices or provide subsidies to offset the rising input costs. They also suggest exploring alternative, locally sourced feed ingredients to reduce dependence on expensive imports.
The state government has formed a committee to examine the issue and mediate between farmers and feed manufacturers. The committee will assess the raw material costs and production expenses of feed companies and evaluate the feasibility of the proposed price increase. The outcome of this committee’s deliberations will be crucial in determining the future of shrimp farming in Andhra Pradesh, a major hub for shrimp production in India. Farmers are hoping for a fair resolution that protects their livelihoods and ensures the sustainability of the industry.
