CALAMITY CAN BE TURNED AS AN OPPORTUNITY – PRAWN CULTURE

CALAMITY CAN BE TURNED AS AN OPPORTUNITY – PRAWN CULTURE

AP with estimated shrimp production of 5.8 LMT/Year is the leading producer and with more than 90% material getting exported, plays vital role in global shrimp markets. The present corona effect is showing heavy toll on the state, in case timely interventions are not put into action. With drastic reduction in exports, we need to look at localized solutions such as improved cold storage facilities, inward receipt finance facility through banks etc., local sales other than working towards fast opening of exports. By addressing such important supply chain issues only one can stipulate processing units to buy at minimum support price, but it cannot be mandated on them, as it will never be binding on them.     

The experience of Sri Prasad Raju, Progressive shrimp farmer from Krishna dist is unique and its worth replicating. Raju have ready to harvest shrimp in 1600 acres and feeding most them further will be an added burden. Banks stopped lending and working capital dried up. He needs about 4 to 5 lakhs cash to keep it going in as it is, where it is condition. He did not lose heart, in fact took it as challenge.

Raju could understand the problems of processing units under constraints of meager exports. Worked out a formula – semi process at pond level, ice pack and supply to processing units for cold storage facility. Price will be decided once exports open up. To meet his daily cash requirement initiated local sales in Gudivada, Hanuman Jn markets and selling about 2 tonnes/day @ Rs. 140-150/Kg, which is more or less no loss no profit rate. Still small farmers are at disadvantage as the middlemen squeeze them.

As gathered at present Gudivada with population of about 1.4 Lakhs is absorbing 3 tons/day at retail price of 160-180/Kg.  Assuming retail prices going up to Rs250/Kg during normal times , we can comfortably take Gudivada requirement of prawn as 1.5 MT/Day. With 1.04 MT/ lakh population as estimated demand, the 5 crore urban population of both Telugu states require about 520 MT Prawn /day. Adding half of it as rural demand the total sale can be 780 MT/Day.

As for the data like feed sales, estimated acreage, the shrimp production in AP in next 3 months will be around 25000 MT/Month. If Govt can facilitate marketing for 300 MT/Day , 40% of estimated demand,  the pressure on processing, exports will come down. Creating local demand will act as check on processors, exporters and will ensure price stability.

80-120 count shrimp which is most preferred in local markets can be harvested and transported to local markets with cold chain facility. This product will not spoil for three days under ice packing condition. If 60 trucks with 5 ton capacity are engaged and linked to terminal markets with designated routes, we can create wonderful marketing network for prawns, which we totally neglected under the influence of fancy word- exports and dollar revenues. Once we establish in this market, many products like ready to cook, ready to eat prawns with area specific, customer specific tastes can be added to broad base the portfolio.  Like egg and poultry products, prawn also can local pricing mechanism in place.   

What we spoke is about the potential in Telugu states. Imagine the demand and wonders one can do if other state markets like Mumbai, Delhi, Bangalore etc., are captured, as AP is the major producer of tasty prawns- Vannamei species of prawns in the country. State as it is cannot run business like this, but it can structure it properly and run on PPP model like Rythu Bazaars.

This is the long term solution, we can think of implementing in post corona situation. What is required right now is immediate solution to farmers. Taiwan and China cooking, drying the harvested prawns and supplying to people as food security measure by deploying army.

 It is may not be localized solution, we may think of supplying harvested prawns in semi processed condition to specially established Rythu bazaars and supply to consumers at cost price. People may buy in bulk and store at home and consume. Prawn is highly nutritious and anti-biotic free food with high protein value and easily digestible.

 Vaa

Combination of factors like local sale, increased storage facilities, warehouse receipt finance, restructuring of finance, facilitating export opportunities etc., can only ensure fair deal to aqua farmers.

Bonthu Guruva Reddy – 9866889246

grbonthu@gmail.com 

        

 Spl thanks to Prasad Raju Garu.