West Asia conflict hits shrimp farmers in Godavari region

Rajamahendravaram: Theconflict in West Asia has begun to negatively impact shrimp farmers in the Godavari districts, pushing the aqua sector into a dire situation. Farmers in the region, who had recently heaved a sigh of relief after the United States eased pressure related to higher tariffs, are once again facing a setback due to the tensions involving Iran, the United States and Israel.

Exporters say the situation has created serious problems for shrimp exports. Several containers that had already been shipped from the state to Gulf countries by sea were forced to return, causing heavy losses to exporters. Aqua farmers said orders from several countries have been cancelled, while a few others are also in the process of being withdrawn. M Suryanarayana Rao, an aqua exporter from West Godavari, expressed his concern over the situation. "There are no signs of aqua exports recovering anytime soon," he said. Apart from export difficulties, farmers are also facing a sharp fall in prices. Market sources said the price of 100 count shrimp has dropped by nearly Rs 30,000 per tonne within a week.

Farmers say the sudden fall in prices has added to their problems. Unable to sell the produce at viable rates and with limited options to store the harvest, farmers are struggling to manage the situation.

From the state, more than 4.25 lakh tonnes of shrimp are exported to foreign markets every year. Nearly 45 per cent of these exports go to the United States, while the rest are shipped to countries such as China and several European markets. Export companies generally enter into advance agreements with farmers for supply over a period of three months based on prevailing market situation. However, the unexpected outbreak of conflict has disrupted the entire export chain, affecting both farmers and exporters.

Representatives of the exporters' association said the sector may not recover until the next production season. Last year, when the United States increased tariffs on aqua products, exporters explored alternative markets. Shrimp exports to tourism hubs in Gulf countries increased during that period. Containers were shipped through Visakhapatnam and Chennai ports to the Gulf region by sea.

However, the present conflict involving Israel, the United States and Iran has affected tourism activity in several Gulf and Arab countries, including Dubai. Tourist destinations in these regions are witnessing vastly reduced tourist footfall, which in turn has affected demand for seafood. Exporters say shrimp demand will improve only after tourist activity in these regions returns to normal.

Guduri Venkateswara Rao, an aquaculture farmer from Bhimavaram, said farmers are struggling to manage their expenses as returns have fallen drastically.