Shrimp prices up 60% on low supply

Owing to rising demand from exporters and a fall in production, shrimp farmers in the state have raised prices about 60 per cent.

"The cost of shrimps has jumped to Rs 470 a kg from Rs 300 in about 20 days," said Manoranjan Panda, vice-president, Odisha Shrimp Farmers Association. Farmers in the state had low stocks, after huge losses last season due to restrictions on shrimp imports by Japan. This led to a fall in the supply of cultured shrimps this season.

Earlier, Japan had insisted on compulsory testing for ethoxyquin for shrimp consignments from India, citing the level of the anti-oxidant was higher than the standard 0.01 ppm.

Due to the short supply of shrimps, sea food exporters have been unable to avail of the fall in the rupee. "Exporters are unable to honour contracts due to low stoking. The prices have doubled compared to last year," said Gorachand Mohanty, president, Seafood Exporters Association of India (Odisha region).

Incessant rains in Bhadrak and Balasore districts, major shrimp-producing hubs, had added to woes, Mohanty added.

Exporters in the state are losing about Rs 100 a kg as export rates had surpassed raw material prices. The supply crunch is also precipitated by low production due to early mortality syndrome disease in aquaculture farms. The drop in production has led to under-utilisation of processing plant capacities. On an average, processing units in the state were operating at about 15 per cent capacity, Mohanty said.

"We are unable to take advantage of high international prices due to crop failure in Vietnam, Thailand, etc, because of short supplies," said Ramesh Mohapatra, president, Utkal Chamber of Commerce and Industry and a sea-food exporter.