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December 24, 2015

India

Prices Increase on Shortages

 

   

 

Thus far in December 2015, shortages of Penaeus vannamei have caused prices to rise.  Exporters in the state of Andhra Pradesh, the heart of India’s shrimp farming industry, are looking further afield, to the state of Tamil Nadu, to buy shrimp—an unusual situation, according to Durai Balasubramanian, secretary of the Pattukottai Shrimp Farmers Association, who said prices have increased by $0.45 a kilo across all count sizes.  He said, the scarcity of raw materials “definitely won’t improve at least until February 2016”.  Right now, he said, there are only limited supplies of 41/50-count shrimp and smaller sizes available.  “Packers are willing to pay farmers...more than market price, but...demand is simply [overwhelming supply].  Several packers are...struggling to fulfill contracts to China and Vietnam.  For example, we have witnessed attempts by packers to ship less quantity than the contract (‘loose loading’) to minimize their losses.”

 

In the event that there is no significant improvement in supplies by February 2016—which is a distinct possibility—attention will turn to the next harvest in May 2016.

 

Shrimp harvests in the states of Odisha and West Bengal have been sold out, leaving Andhra Pradesh the only state with raw material, and it is running out of product.

 

Sources: 1. Undercurrent News [eight free news reads every month].  Editor, Tom Seaman (undercurrent@undercurrentnews.com).  Indian Shrimp Prices Still on Rise as Shortages Hit.  Neil Ramsden (neil.ramsden@undercurrentnews.com).  December 24, 2015.  2. Bob Rosenberry, Shrimp News International, December 24, 2015.

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