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Amit Mitra

VISAKHAPATNAM, Sept. 20

FOR the first time in the 40-year old seafood export history of the country, the United States has replaced Japan as the major importer of Indian marine products, thanks largely to the increased scampi production, especially in Andhra Pradesh.

With scampi (giant freshwater prawns) increasingly tickling the American palate, the US market has, for the last five months, become the biggest consumer of Indian seafood. During 1997-98, 49 per cent of seafood exports found their way into the Japanese market, while the US bought a little over 12 per cent. The balance began to shift towards the US during the last couple of years, with Japan's market share falling to 30.6 per cent of the total seafood export. The US consumption increased to 23.7 per cent last fiscal.

During the first five months of the current fiscal, the US market lapped up 38 per cent of the country's production, replacing Japan as the major buyer of marine products.

Mr Raghunatha Reddy, President of the Association of Indian Fisheries Industry (AIFI), told Business Line that ``increased scampi production in India and the US preference to scampi is largely responsible for this trend. With India, especially Andhra Pradesh, offering tremendous potential for further growth of scampi production, I am confident that this trend will be sustainable.''

Out of the Rs 6,000 crore worth seafood exported by India during last fiscal, Andhra Pradesh contributed about Rs 2,500 crore out of which Rs 750 crore came from scampi production alone.

``Most of the scampi production in AP is concentrated in Nellore district (bordering Tamil Nadu),'' Mr Reddy said.

Although scampi production was started in India about six years ago, the product could not muster a significant market in the global context, due to ``poor marketability''.

But, after many US importers evinced interest in Indian scampi, especially the $350-million Seattle-based Aqua Star, which buys more than 75 per cent of the country's exports to the US, scampi production has been steadily increasing.

Says Mr Robert S. Hooey, Executive Vice-President of Aqua Star: ``Aqua Star has increased its outsourcing from India from nearly zero about three years ago to 25 million pounds of shrimp products. With scampi production on the rise in India, we plan to double our offtake from India in the next two years.''

Scampi production recorded a sharp increase to 11,000 tonnes last fiscal, after the new players in the aquaculture sector began to take to freshwater shrimp farming, with the country becoming a leading scampi exporter in the world.

In the current fiscal, industry observers feel scampi production will surpass last year's volume, in the wake of the September 11-induced market depression clearing in the US market, which has firmed up scampi prices significantly.

``Scampi farmers are presently getting Rs 470-480 per kg, as against the average of Rs 310 per kg they got six months ago. Today, in Nellore district, more than 140 lakh acres of land is under scampi cultivation,'' he said.

Industry observers feel that when scampi culture spills on to the other districts of Andhra Pradesh, there will be a further sharp rise in production.

``Already, the trend is catching on in Ongole, Guntur and other areas in the State. What is unique about this sector is that scampi culture need not be confined to coastal districts unlike shrimp culture. In fact, the industry will be campaigning in the Telengana region to take up this activity,'' Mr Reddy said.

Although the usual `black tiger shrimp' has an edge in terms of price as compared to scampi, what sharpens the returns from this venture is that scampi culture is relatively easier and production can be throughout the year, with the yield averaging 800 kg per acre.

``This is not to say that scampi will replace black tiger shrimp production. We see scampi as the product that will complement exports,'' Mr Reddy said.

As far as scampi market in the US is concerned, there is still vast potential left. Says Mr Hooey: ``Today, the per capita consumption of shrimp products in the US is 3.3 pounds, which is more than even tuna. An increase in 0.7 pounds in per capita consumption is enough to enormously increase the size of the US market.''

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