Shrimp exporters hopeful of Vannamei nod

Shrimp exporters are hopeful of the introduction of Litopenaeus Vannamei in shrimp farming, a native species from South America, in India shortly.

A meeting convened by the commerce ministry on Monday has asked the ministry of agriculture for a speedy finalisation of its views on the introduction of the new species in aquaculture so that the export sector, which is struggling with other high-cost varieties, can heave a sigh of relief.

According to sources, the government will take a final decision on the issue by March. The export fraternity is hoping the species would be introduced within the next six months. The ministry of agriculture is currently opposing the move on account of ecological issues and on-going studies on Vannamei farming.

For the last couple of years, two companies - BMR and Sharath Industries - are farming the species in Andhra Pradesh on a pilot basis.

Talking to Business Standard, Anwar Hashim, the newly elected president of Seafood Exporters Association of India (SEAI), said, "The introduction of Vannamei shrimp is essential for the survival of shrimp aquaculture and exports." The association had presented its view in detail before the commerce ministry.

"We are hopeful of getting a positive nod from the government by next March. The commerce ministry is looking into the matter seriously."

SEAI has been vehemently demanding the introduction of Vannamei farming in India for the last two years.

India mainly cultures Monodon species like Black Tiger, Indicus and Macrobrachium Rosenbergii (fresh water scampi). Breeding these species is costly.

The average production cost of Vannamei is Rs 90 a kg while it is above Rs 160 for Black Tiger. China, Thailand, Indonesia and Vietnam, India's main competitors, have already switched to Litopenaeus Vannamei.

India's shrimp production has been stagnant at 150,000 tonnes per annum, compared with 650,000 tonnes in China, 450,000 tonnes in Thailand, 400,000 tonnes in Indonesia and 350,000 tonnes in Vietnam. Almost 90 per cent of the global shrimp production is that of the Vannamei species.

The advent of this species in the global market has seriously hit Indian exports which is already reeling under the pressure of the appreciating rupee.

According to SEAI sources, the average per kg price realisation of Indian shrimp has gone down in all varieties of shrimp during the last two-three years. The average price of Indian shrimp a kg (21-25 shrimps) has gone down to Rs 399 from Rs 495 in 2005-06.

During April-October 2007, India's marine products exports dropped 19.64 per cent. The country shipped 268,254 tonnes, compared with 333,834 tonnes in the period. Export receipts dropped to Rs 4,280 crore, down 14.21 per cent as against Rs 4,990 crore in April-October 2006.