Phailin's delayed kick: Shrimp prices zoom 200% on short supply

Cyclone Phailin hit sea food producers, exporters in Odisha

Short supply of shrimp due to floods in Odisha induced by Phailin, the severe cyclonic storm on October 12, has hit sea food exporters. Prices have surged by 200 per cent compared to last year.

Odisha produces the black tiger shrimp, a major export value item, with significant demand in Japan, Britain and America.

“The price of shrimp was Rs 200 a kg during this time last year; it is now around Rs 630 a kg. This is due to shortfall in production due to floods triggered by Phailin,” said Gorachand Mohanty, president, Seafood Exporters Association of India-Odisha region.

Shrimp farmers have estimated the total loss at Rs 350 crore due to the devastation by Phailin in Gopalpur, Puri and Jagatsinghpur districts and flooding in Balasore district. A little over 2,000 hectares (ha) of shrimp culture ponds have been lost, with a capacity of almost 3,000 tonne of shrimp (valued at a little over Rs 300 crore).

The regional association has urged the state government for compensation and rehabilitation to the 2,000-plus farmers in the  districts of Balasore, Puri, Jagatsinghpur and Ganjam. The formerly undivided Balasore district along the coast of north Odisha, consisting of Bhadrak and Balasore, accounts for about 80 per cent of the total shrimp farming.

“We are keeping our fingers crossed over the impact on exports, which are likely to drop in quantitative terms this year,” said Mohanty.

Lower prices due to restrictions by importing countries earlier due to the presence of ethoxyquin, an antioxidant, in shrimp and subsequently stricter guidelines for obtaining the Pre-Harvest Test Certificate from the Marine Products Export Development Authority had impelled farmers to go for low stocking of seed.

“Exporters are caught between the devil and the deep sea. If they purchase, they will lose and if they abstain from buying, they have to bear the overhead expenses of factories,” Mohanty said.

Due to the cyclonic storm, fishermen are also not venturing into the sea, leading to drop in the catch, he added.