Andhra government introduces new pricing system for aqua feed

VIJAYAWADA: The State government has introduced a dynamic pricing system for aqua feed in an effort to reduce the financial burden on aquaculture farmers and revitalise the struggling sector.

According to State Aquaculture Development Authority Vice-Chairman Anam Venkata Ramana Reddy, the dynamic pricing system was implemented after consultations with the government and stakeholders.

The new system is expected to significantly reduce feed costs, which typically account for over 70% of the total expenses in shrimp cultivation.

Farmers usually require at least one tonne of feed per acre for 100-count shrimp (Vannamei or Black Tiger) and up to three tonnes for 30–40 count shrimp. Each tonne of feed costs around Rs 90,000. The dynamic pricing system has already resulted in a reduction of Rs 4 per kg, or Rs 4,000 per tonne, in feed prices, providing much-needed relief to farmers.

The government has also stated that feed prices will be revised every 10 days based on market conditions following discussions with industry stakeholders.

In addition to reducing feed prices, the new system has triggered a rise in shrimp prices by over 20%. Traders now procure shrimp at rates ranging from Rs 230 for 100-count shrimp to Rs 425 for 30-count shrimp. These prices will also be reviewed every 10 days to align with market fluctuations.

To boost domestic consumption, the government has set up the AP Prawn Produce Company (PPC), which is modelled on the National Egg Coordination Committee (NECC). The aim is to increase local prawn consumption, reducing the dependency on exports.

A corpus fund has been allocated for this initiative, and the process is expected to be completed by June. In addition, promotional campaigns, awareness drives, and infrastructure development for cold storage are planned to support this initiative.

A 30-page report, summarising farmers’ opinions and traders’ suggestions, will be submitted online to Chief Minister N Chandrababu Naidu.