Andhra Pradesh's aqua farmers are reeling under the dual pressure of falling shrimp prices and rising input costs, squeezing profit margins to near zero. According to industry sources, a kilogram of 100-count shrimp that once fetched Rs 275 now sells for just Rs 225. Similarly, 50-count shrimp has dropped from Rs 350 to Rs 285, and 30-count from Rs 500 to Rs 425. These price declines have wiped out margins, leaving farmers struggling to recover production costs.
Price crash across shrimp sizes
The price drop is not limited to a single category. Farmers report that all sizes of shrimp have seen a significant reduction in market rates over the past few months. The 100-count variety, which is the most commonly farmed, has seen a drop of over 18%. The 50-count and 30-count varieties have fallen by nearly 19% and 15%, respectively. This trend has been consistent since early 2026, with no signs of recovery.
Rising input costs add to woes
While prices have fallen, the cost of feed, electricity, and medicine has risen sharply. Feed prices have increased by about 20% due to higher raw material costs, and electricity tariffs have gone up by 15%. Farmers also face higher expenses for disease management and pond maintenance. "We are spending more to produce less income," said M. Venkateswara Rao, a shrimp farmer from West Godavari district. "If this continues, many of us will have to shut down."
Impact on livelihoods
Andhra Pradesh is the largest shrimp-producing state in India, accounting for over 70% of the country's aquaculture output. The sector employs millions of people directly and indirectly. The current crisis threatens not only farmers but also workers in feed mills, processing plants, and export units. Many farmers have already reduced the area under cultivation or switched to alternative crops like fish or prawns.
Government response and farmer demands
The state government has announced a relief package of Rs 500 crore, including subsidies on feed and electricity. However, farmers say the measures are inadequate. They are demanding minimum support prices (MSP) for shrimp and better access to credit. "The government must intervene to stabilize prices," said P. Srinivas, president of the Andhra Pradesh Aqua Farmers Association. "Otherwise, the industry will collapse."
Export market challenges
About 90% of Andhra's shrimp is exported, mainly to the US, Europe, and Japan. Global demand has softened due to economic slowdown and competition from other shrimp-producing countries like Ecuador and Vietnam. Export prices have fallen by 10-15% in the last year, further pressuring local rates. Farmers are also facing stricter quality norms and higher logistics costs.
Outlook for the sector
Industry experts predict that the current downturn may persist for another 6-12 months unless global demand revives or production costs decrease. Some suggest diversifying into value-added products like ready-to-cook shrimp or organic aquaculture. However, such shifts require investment and technical know-how that many small farmers lack. Without immediate support, the sector faces a wave of bankruptcies.
