The Hindu Business Line : Shrimp rates ebb on poor demand

DEMAND for shrimps at the production centres has a hit a low with most overseas buyers awaiting year-end sales at the retail end. Arrivals from the farms are desultory with the December crop output insignificant, according to market sources.

Prices range around $12.40 per 16/20 counts black tiger and Bangkok has picked up some stocks. Raw material prices range around Rs 390-400 per kg 30 counts on head-on basis and some stocks are available in Bheemavaram, Andhra Pradesh. Arrivals have dried up in most production centres.

The next major season could be in April-May 2003 and major quantities cannot be expected in the interim period. The reasons for the drop in second (December) crop arrivals are due to purchases of mid-size shrimps by the US earlier this year. With the US picking up smaller counts, the farmers opted to go in for heavy stocking of the ponds. They were concentrating on higher output of smaller counts rather than extending the crop to get larger sized shrimps. Therefore, this has disrupted the crop routine, sources said.

There have also been natural factors as monsoon failure and extended dry spells that affected salinity, they said.

According to sources, the year-end sales at the retail end in the importing countries such as Japan and the US is crucial. This will dictate the production trends for the next year. With most US purchases on contract basis, there is not likely to be a weekly change in purchases. Japanese purchases from India have been steadily dropping over the last five years and the average prices too have taken a beating. The current year purchases by Japan could mark a new low in terms of quantities and average prices offered. Average price could range between $8 and 8.5, which would make it lower than that offered in 1996 — $9.8.

The drop in Japanese purchases could largely be attributed to increase in competition. Vietnam has emerged a major supplier because of its proximity to Japan and faster delivery schedules. Indonesia has also started to stabilise and production could increase, meaning more competition, sources said.

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