Marine exporters to support farmers with minimum prices

Seafood exporters in India are planning to support the shrimp farmers by providing minimum support price , a move aimed to support the farmers marred by distress sale of the sea food items.

"The sea food exporters' association of India are contemplating to support the farmers with a minimum price when their realisation plunges. When the rates are unworkable for the farmers, the association may go directly to give the price. We are also having a dialogue with the government for the support," said Tara Patnaik , vice president , SEAI and Chairman , Falcon Marine Exports limited, a leading exporter in country.

The farmers are in distress due to over production in other shrimp producing countries and lack of demand owing to slowing down of economies in consuming countries.

Except US, no other countries are ready to pay good prices because of the slowing down in the economies, Patnaik added.

It may be noted that the depreciation of Euro, weaker economic condition in China, devaluation of yen, depreciation of Indian rupee, improvement in supply conditions in South East Asian countries in comparison to previous year has resulted in continuous drop in prices of shrimp, a principle commodity of Indian seafood export basket, according to the Marine Products Export Development Authority (MPEDA) the nodal agency for promotion of export of marine products from India.

The association members are strongly trying to bring down the other input costs of farmers like seeds, feeds and other chemicals used for farming, he added. The support price will vary depending on the scenario in the year it is paid.

As per MPEDA, as many as 130,947 hectares of area are under culture in the country during 2014-15 producing about 434,557 tonnes of exportable shrimps and scampi.

During the financial year 2014-15, exports of marine products reached an all-time high of $5,511.12 million. Marine product exports crossed all previous records in quantity, rupee value and dollar terms. Exports aggregated to 10,51,243 tonne valued at Rs 33,441.61 crores and $5,511.12 million. Compared to the previous year, seafood exports has recorded a growth of 6.86 per cent in quantity, 10.69 per cent in rupee and 10.05 per cent growth in dollar earnings.