Rising feed cost dampen shrimp farmers prospects despite higher volumes

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Despite a 3 per cent increase in overall volumes, shrimp farmers in the country are keeping their fingers crossed as rising feed costs threaten the operational viability of several aquaculture farms.

Ravikumar Yellanki, President of the All-India Shrimp Hatchery Association, attributed the increase in shrimp feed prices partly to the impact of El Niño on the availability of key agricultural and marine raw materials. Weather-related disruptions in major producing regions have affected the availability and prices of fishmeal, fish oil, soybean meal and other key feed ingredients, adding to the cost pressures faced by feed manufacturers. Feed manufacturers, too, are facing squeezed margins as they have not been able to fully pass on the increased raw-material costs.

This, coupled with c following unseasonal rains and increased Vibrio loads associated with warmer water conditions, has further complicated farming operations. Higher bacterial loads can affect shrimp health, feed utilisation, survival and overall farm productivity, reducing operational efficiencies. Farmers are consequently spending more on feed without any corresponding improvement in shrimp realisations, further squeezing their operating margins, he said.

Prices subdued

Shrimp prices continue to remain subdued due to a glut in the global market, driven by overproduction in Ecuador, one of the world’s largest shrimp-producing countries and a major competitor to India.

On the export front, Yellanki said shipments of Indian shrimp were performing reasonably well despite reduced penetration in the US market, with demand from other overseas destinations helping sustain export momentum.

Industry sources pointed out that shrimp feed prices have surged due to rising raw material and fishmeal costs, putting financial pressure on aquaculture farmers. Prices have climbed sharply, with rates rising by ₹10 to ₹16 per kg, bringing per-tonne costs to roughly ₹1,20,000 to ₹1,75,000 depending on the brand and specifications. Black Tiger feed prices have increased by ₹12 per kg, pushing average prices to over ₹1,22,000 per tonne.

It is pointed out that farmers need roughly 1.3 to 1.7 tonnes of feed (and more in disease-affected ponds) to produce a single tonne of shrimp, driving total production costs above ₹2.8 lakh per tonne.