Weak export demand, domestic cartels choke Andhra Pradesh prawn farmers

Andhra Pradesh By SNV Sudhir November 24, 2022 Read the article

Shrimp farmers in Andhra Pradesh are struggling to stay afloat, being forced into distress sales even before the winter season ends.

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“Small and marginal farmers faced the brunt most,” said Mudunuri Venkata Bangaru Raju, a shrimp farmer from Bhimavaram.

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Cost-cutting during the pandemic included reducing imports which has hit India’s shrimp/prawn exporters.

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Competitors from Ecuador and Vietnam have eaten away at India’s traditional markets in the US, Europe, and China.

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China has not resumed imports since last year when traces of the Covid-19 virus were detected on the packaging containing shrimp consignments from India.

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Local traders in the domestic market have formed cartels, which help them drive down procurement prices.

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This was most blatantly over the past few months as traders made a mockery of the minimum support prices (MSPs).

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A prawn farmer told South First they suspected “syndicating”, using the local terms for cartels.

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Chief Minister YS Jagan Mohan Reddy has now constituted a high-level committee to look into the issue.

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The power tariff revision has compounded the woes of the shrimp farmers in Andhra Pradesh.

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Prawn farmers say the winter crop has been a near washout.

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