VIJAYAWADA: American President Donald Trump’s reciprocal tariffs have hit Andhra Pradesh’s aqua sector badly as exporters have stopped purchasing shrimp from farmers. Following imposition of tariffs, the prices of shrimp have declined.
Before the announcement of the tariffs, the Vannamei shrimp, which is widely cultivated across the State, was priced at Rs 460 for 30 count, and it declined to Rs 410 by Friday morning.
The number of shrimp per kg determines the count. The prices of all the counts of shrimp ranging from 20 to 100 have been hit.
Shrimp farmers are a depressed lot with the declining prices as it is the harvesting time. Andhra Pradesh is one of the major exporters, and a leading producer of aqua products, accounting for 41% of the total output.
According to the official data, over 4 lakh acres in the State are under aquaculture. The aqua acreage is 1.11 lakh in Krishna, and over 1 lakh each in East Godavari and West Godavari districts. Around 8 lakh farmers are directly and indirectly dependent on aqua sector.
In fact, aquaculture is witnessing a boom in the State now as more and more farmers have switched to shrimp cultivation from agriculture to reap better profits.
It needs an investment of Rs 6 lakh per acre on an average to raise Vannamei (whiteleg shrimp). On an average, the yield per acre is three tonnes (25-30 count), and farmers derive an income of Rs 12 lakh if the market prices are good. If the count is 100, the returns are low.
Farmers have felt that the 34.26% tariffs, including the reciprocal tariff of 26% have affected the aqua sector severely.
Madan Mohan, a shrimp farmer of Akividu in West Godavari, said the price decline of over Rs 50 per kg following the imposition of US tariffs has come as a big blow to them.
MP Lavu seeks Centre’s intervention
“If the price declining trend continues, shrimp farmers may not get their investment back. Hence, the government should intervene in the matter to better safeguard the interests of shrimp farmers,” he said.
Kokkiligadda Srinivasa Rao, president of Srinivasa Fishermen Society, Machilipatnam, said, “If shrimp exports are hit due to the US tariffs, aqua farmers are forced to sell their produce locally, which cause them heavy losses. The adverse impact of tariffs is more on Brackish shrimp.”
Narasaraopet MP Lavu Sri Krishna Devarayalu raised the issue in Parliament on Thursday, mentioning that around 11% of AP’s GDP comes from sea food and aqua exports. “About 8 lakh farmers are dependent on aquaculture directly and indirectly in the State. The State earns Rs 3.5 billion from seafood exports per year. Now, Ecuador with 10% tariff will be a major competitor to India with 26% tariff in aqua exports. We have so much confidence in PM Modi that he will be able to protect the aqua sector, and safeguard the interests of shrimp farmers. I request the Union Commerce Minister to look into the issue seriously as aqua sector is a major revenue earner for AP,” he said.
