The Hindu Business Line : Water shortage may affect shrimp output

The failure of the monsoon has hit water availability in the creeks and canals in the major production centres in Andhra Pradesh such as Bhimavaram and the whole of West and East Godavari Districts. This could spark a competition for water between the paddy farmers and shrimp farmers.

With aquaculture demanding 8-10 fold more quantity of water than paddy farming, the Government could well restrict water usage and rule in favour of the paddy farmers. This could drastically affect the first shrimp crop of 2003 when the shrimp farmers will commence stocking the ponds in mid-January-February. Production loss in these areas will mean that the major share of shrimps for export will not be available, sources said.

Discussions are on between the Government officials and shrimp farm representatives. A clear picture could emerge in January, sources said.

Lacklustre sales of shrimps in Japanese retail markets have affected sentiments here with major importers staying away from the market.

Re-processors in Thailand and Vietnam are picking up some black tiger shrimps at prices ranging around $12.50 per kg 16/20 counts, according to market sources. These buyers purchase for further processing and value addition and export to the EU and the US.

Year-end sales in Japan have been low and processors say that product movement has been poor, according to market sources. If the trend continues, this could further dampen purchases in January, and the slump could continue well into 2003 particularly with the fate of the first crop under question, felt sources.

Output during December has also been lower than normal because of adverse weather conditions. With raw material availability low, prices continue to rule high around Rs 410 per kg 30 counts on head-on basis. This is an unviable situation when compared to the export prices, they said.

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