NELLORE: Seafood exporters in Andhra Pradesh are optimistic about increase in their earnings as Finance Minister Nirmala Sitharaman has proposed to reduce the basic customs duty on shrimp feed in the Union Budget for 2024-25. Shrimp, a major export earner, plays a crucial role in the economy of coastal districts, including Nellore.
The proposal to reduce the customs duty on shrimp feed to 5% is expected to boost the commercial shrimp farming in the State. Andhra Pradesh accounts for nearly 60% of the country’s shrimp production, with the erstwhile undivided Nellore district being a major hub of fish processing. The coastal region is a major player in the State’s aqua exports market, producing more than 6.34 lakh metric tonnes of shrimp annually. Litopenaeus Vannamei variety has been profitable for local farmers, following the success of Tiger variety.
K Suresh Reddy, an aqua exporter from Nellore district, has highlighted the industry’s heavy dependence on imported shrimp feed due to the limited number of indigenous manufacturers. “Hatcheries need incentives given that they take the initial high risks of importing live shrimp and have a limited window period for selling the stock to farmers without compromising quality and safety.”
Shrimp farming, which was introduced in the early ‘80s in Andhra Pradesh has significantly transformed the economy of coastal districts. It has provided farmers with a lucrative alternative to traditional paddy and other crops. Farmers in the coastal region, particularly in the Godavari and Krishna Deltas, have increasingly converted their agricultural lands into shrimp tanks. This shift has not only diversified agricultural practices but also enhanced the economic prospects of the local farming communities.
C Keshava, an aqua farmer from Vakadu, said, “This policy change is expected to boost earnings across the sector and enhance marine exports over time. Usually, seafood exporters and shrimp farmers rely on imports for about 50% of their shrimp feed and fish meal. The reduction in customs duty on shrimp feed will benefit not only aqua farms but also shrimp farmers, coastal communities, fishermen, trawler owners, and other fish workers.”
Shrimp output
Andhra Pradesh accounts for nearly 60% of the country’s shrimp production
Litopenaeus Vannamei variety has been particularly profitable for local farmers
State’s aqua sector is heavily focused on shrimp, which constitutes over 95% of the total production