Indian shrimp output not expected to be damaged by Odisha cyclone

Indian shrimp output not expected to be damaged by Odisha cyclone

November 10, 2018 0 By Tariq Altararwa

Indian shrimp output not expected to be damaged by Odisha cyclone

The eastern Indian state of Odisha was battered by cyclone Titli from Oct. 8-12, with authorities still counting the costs.

Undercurrent News received an email from a shrimp packer based in the state capital of Bhubaneswar, claiming the resulting floods have damaged aquaculture there and led to the spread of viral disease in October.

He added that production has “significantly dropped”, and there are not enough raw materials to meet packers’ requirements. “It is a horrible condition now. Farmers are asking INR 70 [per kilogram] higher than the association price.”

He said there was “no sign of international price increase from China”, with buyers there looking for 31/40 count at $6.50; “but the cost is more than that asking rate, I mean $7.20”.

A second shrimp sector source based in Odisha told Undercurrent the cyclone had indeed led to a fresh round of disease outbreak. This was likely to add to a picture which sees raw material rates out-of-step with export prices, he said.

“This is the greater reality in India, where due to processing overcapacity, raw material rates do not match global market rates. Andhra [Pradesh] farmers abstaining from stocking, plus disease outbreaks, compound this problem.”

Durai Balasubramanian, secretary of the Pattukottai Shrimp Farmers Association in Tamil Nadu, told Undercurrent that “many of India’s shrimp farming areas have been vastly washed out with white spot virus”.

“It’s very severe in many areas, production will be affected,” he claimed. According to Indian media cyclone Titli has also hit parts of northern Andhra Pradesh, and West and South Bengal.

As of Oct. 24 the Odisha state government estimates 77 people have been killed by the cyclone and flooding. Over 270,000 hectares of cropland are said to have been damaged, as well as roads and infrastructure.

As early as Oct. 20 the state government estimated it had lost INR 27.65 billion ($377.7 million) to the disaster.

The eastern Indian state of Odisha was battered by cyclone Titli from Oct. 8-12, with authorities still counting the costs.

Undercurrent News received an email from a shrimp packer based in the state capital of Bhubaneswar, claiming the resulting floods have damaged aquaculture there and led to the spread of viral disease in October.

He added that production has “significantly dropped”, and there are not enough raw materials to meet packers’ requirements. “It is a horrible condition now. Farmers are asking INR 70 [per kilogram] higher than the association price.”

He said there was “no sign of international price increase from China”, with buyers there looking for 31/40 count at $6.50; “but the cost is more than that asking rate, I mean $7.20”.

A second shrimp sector source based in Odisha told Undercurrent the cyclone had indeed led to a fresh round of disease outbreak. This was likely to add to a picture which sees raw material rates out-of-step with export prices, he said.

“This is the greater reality in India, where due to processing overcapacity, raw material rates do not match global market rates. Andhra [Pradesh] farmers abstaining from stocking, plus disease outbreaks, compound this problem.”

Durai Balasubramanian, secretary of the Pattukottai Shrimp Farmers Association in Tamil Nadu, told Undercurrent that “many of India’s shrimp farming areas have been vastly washed out with white spot virus”.

“It’s very severe in many areas, production will be affected,” he claimed. According to Indian media cyclone Titli has also hit parts of northern Andhra Pradesh, and West and South Bengal.

As of Oct. 24 the Odisha state government estimates 77 people have been killed by the cyclone and flooding. Over 270,000 hectares of cropland are said to have been damaged, as well as roads and infrastructure.

As early as Oct. 20 the state government estimated it had lost INR 27.65 billion ($377.7 million) to the disaster.

Damage to shrimp sector not too serious

Rajamanohar Somasundaram — co-founder of Aquaconnect, South Asia’s “largest aqua farming network” — told Undercurrent his sources hadn’t reported too great an effect on Odisha’s shrimp farms from the storms.

“Currently we don’t sense the disease threat is going to play a predominant role in total output,” he said. “Odisha contributes around 7% to overall Indian production, so the impact is going to be minimal [across the country as a whole].”

Prices continue to maintain a status quo, he said, though shrimp raw material supply is low as most of the farmers are in the middle of a growth cycle. “This might lead to a surge in pricing,” he suggested.

Earlier in October Undercurrent reported that Indian farmed vannamei shrimp prices were on an upward trend, and are expected to maintain that for the rest of 2018.

The “summer crop”, harvested earlier this year, saw some farmers limit their stocking, as low raw material prices and increasing production costs in the first half of 2018 meant shrimp farming was a loss-making activity for many.

While prices have stabilized since around the week 31/ 32 mark, prompting more farmers to bet on stocking for the winter crop, harvests are still expected to yield lower supplies than India’s shrimp packers require.

 

source.https://www.undercurrentnews.com/2018/10/26/indian-shrimp-output-not-expected-to-be-damaged-by-odisha-cyclone/