Many fingers point at India as the root cause of the current crisis in global shrimp prices.
Market prices have slumped dramatically as a result of continuous oversupply on the one hand and overstocking in importers’ warehouses in most markets on the other. Farmers across India have suffered the consequences as their production costs far exceeded market rates. As a result, in May, farmers have protested, especially in the Andhra Pradesh state, and many farmers have decided not to stock at all or to stock their ponds only moderately.
Although farmers that enjoyed the benefits of the market conditions of previous years should be able to survive the current price slump, farmers who entered the market more recently will struggle to survive. Luckily for the farmers, the first signs of a price recovery – stimulated by public and private sector interventions and by a slight pull from the market – are already visible.
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