Another ‘Feed’ Price Shock.. Another Burden on Aqua Farmers!

Another ‘Feed’ Price Shock.. Another Burden on Aqua Farmers!

The problems faced by aqua farmers in Andhra Pradesh are mounting, with the rising prices charged by shrimp feed companies adding to their burden. Feed is one of the most crucial inputs in shrimp farming, and repeated price hikes by companies are increasing farmers’ production costs.

The latest development has triggered serious concern among aqua farmers, as feed companies have reportedly written to the government seeking permission to increase shrimp feed prices by up to ₹15,000 per tonne.

Meanwhile, SK Retting Company has already announced that it will increase the price of Vannamei feed by ₹5,700 per tonne and Tiger feed by ₹3,850 per tonne from September 1. After prices were increased by up to ₹4,000 per tonne in February and by another ₹12,000 in June, preparations for yet another hike have left farmers deeply worried.

Repeated Feed Price Hikes.. Farmers Left to Bear the Losses!

Feed costs are one of the biggest expenses in shrimp farming. Since shrimp need to be fed continuously according to their growth, any increase in feed prices directly affects the overall cultivation cost for farmers.

However, allegations are growing that feed companies are repeatedly increasing prices. SK Retting Company’s announcement of a ₹5,700-per-tonne hike in Vannamei feed and ₹3,850 in Tiger feed has intensified concerns among farmers.

According to the company’s announcement, the revised prices will come into effect from September 1. For farmers who are already struggling with increased feed costs, the latest hike will add another significant financial burden.

Companies Seek Permission to Increase Feed Prices by Up to ₹15,000 Per Tonne

At the same time, the reported move by feed companies to approach the government seeking permission to increase shrimp feed prices by up to ₹15,000 per tonne has now become a major talking point in the aqua sector.

Even when farmers fail to get the expected price for their shrimp in the market, they are the ones who have to bear the losses. But if input costs such as feed, medicines, electricity and labour continue to rise, farmers are increasingly questioning what will actually remain in their hands after cultivation.

If companies keep increasing prices, how can farmers survive the rising cost of cultivation? This is now the question being raised across the aqua sector.

₹4,000 in February.. ₹12,000 in June.. Another Hike Now?

The sequence of feed price increases has further intensified farmers’ concerns.

  • Up to ₹4,000 per tonne increase in February
  • Up to ₹12,000 per tonne increase in June
  • Now, a request to increase prices by up to ₹15,000 per tonne

The repeated hikes within a short period indicate the extent of the financial burden being placed on aqua farmers.

Even as cultivation costs rise, shrimp prices in the market may not increase proportionately. If farmers fail to recover their investment from the sale of their produce, losses become inevitable. Aqua-sector representatives fear that repeated feed price increases could further weaken the financial position of farmers.

Aqua Act Undermined? Feed Companies Accused of Unilaterally Raising Prices

Although the APSADA Act is intended to protect the interests of aqua farmers, allegations that feed companies are unilaterally increasing prices have triggered a serious debate.

Questions are being raised over whether the provisions intended to protect farmers are actually being implemented. Before allowing price increases, is the government examining the reasons cited by companies, their production costs, raw material prices and prevailing market conditions?

Farmer groups are expressing anger that the situation has reached a point where they are forced to ask:

Are these laws meant to protect farmers or benefit companies?

Chandrababu Government Allegedly Favouring Feed Companies?

Political criticism over the government’s approach to repeated feed price hikes is also intensifying.

Opposition groups are making serious allegations that the Chandrababu government is allegedly favouring feed companies while farmers continue to struggle, with claims that the government is giving priority to company interests instead of addressing farmers’ concerns.

Critics are questioning why the government is failing to put a check on feed companies when its responsibility should be to reduce the input costs faced by farmers.

The aqua sector can survive only if farmers survive. And a healthy aqua sector is important for the state’s economy. But if the burden on farmers keeps increasing while companies receive greater flexibility, who ultimately benefits? This is the question now surrounding the government.

Feed Burden Has Become Unbearable Over the Past Two Years

According to the details mentioned in the clipping, shrimp feed prices have already increased significantly. Compared with earlier prices, farmers are now spending considerably more on feed.

On one hand, shrimp cultivation costs are rising. On the other, uncertain market prices are making the situation even more difficult for farmers.

Heavy investment is required to undertake cultivation.. market prices remain uncertain when the crop is harvested.. and feed companies continue to increase prices in between..

Aqua farmer associations are expressing concern that farmers are being pushed into an increasingly difficult financial situation.

Government Must Intervene Immediately Over Feed Price Hikes

Aqua farmers are demanding that the government conduct a comprehensive inquiry into the proposed price increases by feed companies. They want the government to examine the production costs, raw material prices and other expenses cited by the companies and make the actual facts public.

They also insist that the government has a responsibility to strictly implement the provisions of the APSADA Act and ensure that farmers are not burdened with unilateral price increases.

Aqua-sector representatives say this is the time for the government to prove that the interests of farmers are more important than the interests of feed companies.

Will the Government Put a Brake on the ‘Feed’ Burden.. or Sacrifice the Farmer?

The reported request to increase shrimp feed prices by up to ₹15,000 per tonne, coupled with the already announced ₹5,700 increase for Vannamei feed and ₹3,850 increase for Tiger feed, has created serious unrest in the aqua sector.

With feed prices having already increased by up to ₹4,000 in February and ₹12,000 in June, the latest proposals for another hike naturally raise a bigger question:

Where will the government draw the line on the aggressive price hikes by feed companies?

Even if the APSADA Act exists, questions arise about its purpose if farmers are not adequately protected. Farmers suffer losses while companies profit and the government remains a silent spectator is this the agricultural policy of the coalition government? aqua farmers are asking.

The Chandrababu government must wake up and conduct a comprehensive inquiry into the feed companies’ proposed price hikes. There is an urgent need to put a brake on the mounting ‘feed’ burden being placed on aqua farmers.

Otherwise, repeated price increases could push the crisis faced by shrimp farmers into an even deeper and more serious situation.

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