Aquaculture – Feed Price Cut Brings Relief to Andhra Aqua Farmers

Aquaculture – The Andhra Pradesh government has stepped in to address concerns over rising aquaculture feed costs, offering relief to thousands of fish and shrimp farmers across the state. Chief Minister N. Chandrababu Naidu held a detailed meeting at the State Secretariat with representatives of farmer groups and feed manufacturing companies, leading to a consensus on reducing feed prices.

Agreement Reached on Feed Price Reduction

Following extensive discussions, the Chief Minister directed feed manufacturers to lower the price of aqua feed by Rs 4 per kilogram. As a result, the Maximum Retail Price has been reduced from Rs 112 to Rs 108 per kilogram. Representatives from both the farming community and the feed industry accepted the proposal, providing immediate financial support to aquaculture producers who had expressed concerns over rising operational expenses.

Committee to Develop Long-Term Pricing Framework

To prevent similar disputes in the future, the government announced the creation of a special committee consisting of aqua farmers, feed manufacturers, and government officials. The panel has been tasked with preparing a comprehensive report within 20 days. Its recommendations will focus on feed pricing mechanisms, challenges faced by the industry, processing-related issues, and measures aimed at controlling environmental pollution linked to aquaculture activities.

Farmers Highlight Past Challenges

During the meeting, farmers pointed out that feed prices had increased multiple times between 2019 and recent years, rising from Rs 87.80 per kilogram to nearly Rs 108 per kilogram. They said no major intervention had taken place during that period to ease the burden on producers.

Farmer representatives also expressed appreciation for the state’s electricity subsidy program, under which power is supplied at Rs 1.50 per unit. They credited the present leadership with helping aquaculture expand beyond the traditional Godavari region and grow across the coastal districts from Srikakulam to Nellore.

Additional Demands Raised by the Sector

Apart from feed pricing, farmers requested broader insurance coverage for shrimp cultivation ponds and stronger support for nursery pond development. They also sought relaxation in certain subsidy-linked empanelment requirements and asked the government to ensure uninterrupted water availability for aquaculture operations throughout the year.

Industry Explains Rising Production Costs

Feed manufacturers outlined the reasons behind recent price increases. According to company representatives, shortages of key raw materials such as soybean and fishmeal have significantly increased production expenses. They noted that restrictions affecting the import of lower-cost soybeans from the United States have forced companies to depend on domestic supplies, where prices are substantially higher.

Industry officials stated that the actual increase in manufacturing costs would have justified a much larger rise in feed prices. However, they claimed that companies limited the increase to reduce the impact on farmers and maintain the sector’s competitiveness.

Government Assures Continued Support

Responding to the concerns raised, Naidu assured stakeholders that aquaculture operations would continue to receive adequate water supplies. He described the industry as a vital source of employment and income for lakhs of families and reaffirmed the government’s commitment to its growth.

The Chief Minister also noted that the state had provided electricity subsidies worth Rs 1,543 crore to the aquaculture sector over the last two years. He urged both farmers and manufacturers to work together toward a balanced and sustainable solution that protects the interests of all parties.

Focus on Exports and Quality Standards

Naidu encouraged farmers to explore ways of lowering production costs while maintaining productivity. He also advised farmer associations to engage in regular discussions and develop collective responses to industry challenges.

Highlighting export opportunities, he said efforts to diversify markets had helped the sector reach alternative destinations after restrictions emerged in certain overseas markets. At the same time, he stressed the importance of maintaining strict quality standards. Referring to a recent export rejection linked to pesticide residue concerns, he urged producers to remain vigilant and ensure compliance with international requirements.

The meeting was attended by Agriculture Minister K. Atchannaidu, Andhra Pradesh Aquaculture Development Authority Chairman A. Venkataramana Reddy, senior government officials, aquaculture farmers, and representatives from feed manufacturing companies.