Aqua sector breathes easy with minimum price fixation

Rajamahendravaram: The aquaculture sector in Andhra Pradesh, which recently faced a turbulent phase due to policy decisions by the US Administration, is now witnessing signs of stability. Swift intervention by the state government appears to have brought temporary relief, much to the respite of farmers, traders, and industrial stakeholders dependent on the aqua industry. The situation started improving after Chief Minister N Chandrababu Naidu appealed to exporters to support aqua farmers and recommended a minimum price of Rs 220 per kilogram for 100-count shrimp. This move triggered renewed activity in the market.

Simultaneously, optimism surged when the US government announced a temporary suspension of import tariffs for 90 days, aligning with the state’s crisis mitigation efforts. This has created a hopeful atmosphere in the aqua sector.

Experts said that summer is the most favourable season for aquaculture, with minimal risk of disease and viral infections. Even farmers who stay away from shrimp farming during the monsoon are now showing keen interest in summer cropping. In Konaseema district alone, aqua farming spans over 30,000 acres, with harvests possible in 30 to 45 days.

The US decision to impose tariffs under President Trump did not affect exports to China, the European Union, or Arab nations. While Andhra Pradesh continues to export 20, 30, and 40-count shrimp to the US, the rest are shipped to other countries.

Despite favourable conditions in these markets, there have been allegations that middlemen are manipulating prices using the US situation as a pretext to lower count prices and exploit farmers.

Currently, 16 companies are exporting shrimp from Andhra Pradesh to international markets. Farmers have raised concerns over these exporters acting as a syndicate to control purchase prices. The state government’s decision to enforce Rs 220 as the minimum price is being hailed by farmers as a much-needed step to curb exploitative practices. With export-friendly conditions and government support, the aquaculture industry in Andhra Pradesh is poised for recovery and renewed growth.