India’s shrimp feed industry has been going through highly turbulent times in supply chain, logistics and operations since the beginning of 2020 due to the rapid increased cost of raw materials both domestically produced and the imported ingredients needed for feed production. The situation worsened since March 2021 when prices of the main raw materials like soybean de-oiled cake (DOC), fish meal and other ingredients started shooting up on a daily basis. COVID-19 pandemic added fuel to the fire in the form of restrictions on logistics and disruptions in man power availability and reduced feed demand due to similar constraints faced by shrimp farmers. The prices Soya DOC with 50 % protein which constitutes about 60 percent of the shrimp feed have increased 300 percent in a span of four months and also became scarce due to hoarding by the speculative traders. The outcome of these developments has resulted in a crisis in shrimp feed industry. This has adversely impacted the entire shrimp value chain like hatcheries, shrimp farms, ice factories, transporters and the shrimp processing industry and export markets as well.
In addition, Soya bean meal is also used in manufacturing fish feeds. De-oiled Cake (DOC) of Soya with 46 % protein is used up to 20 % in fish feed manufacturing process. About 15 lakh tons of fish feeds are manufactured in India to meet the demand of fresh water fish culture consuming about 3.00 lakh tons of DOC. About 15 lakh farmers are involved in inland fish culture and at least 100 lakh people depend on this sector in production, marketing of fish and other related activities. The steep increase in DOC prices coupled with the scarcity of DOC has also been adversely affecting the fish production and related activities also. It has also pushed up the prices of fish which is the cheaper protein source for most of the rural poor and middle class in India.
Similarly, Poultry sector which also depends on Soya DOC has also suffered a big dent on account of these spiralling prices of various raw materials throwing this sector out of gear and pushing the prices of eggs and chicken. Thus, the unprecedented market turbulence in the prices and scarcity of essential raw materials for shrimp, fish, poultry and dairy feeds has thrown the rural allied sector into chaos and crisis. It has affected the employment and livelihoods of more than a crore workers engaged in these rural based allied sectors apart from hitting the interests of crores of consumers of fish, eggs and chicken.
Thus,it is quite evident from the above tables that the Soya DOC prices have risen by 300 percent. However, keeping the overall interest of the sector the manufacturers have been absorbing the increase in the raw material cost by cutting corners and other strict economic measures and foregoing profits in order to sustain the industry. Having realized the critical situation way back in the month of April, The Shrimp Feed Manufacturers Association (SFMA) along with the All India Poultry Farmers Association has made earnest appeal through several letters sent to Hon’ble Prime Minister, Hon’ble Minister for Fisheries, Animal Husbandry and Dairying and the Secretaries concerned departments duly explaining the causes for this steep increase in DOC prices and the adverse effects it is going to have on the shrimp industry, fish production and poultry sector as well.
The office bearers of Shrimp Feed Manufacturers Association met the Hon’ble Minister for Fisheries, Animal Husbandry and Dairying met him in the month of April and represented the problem and requested for permission to importing Soya DOC.
It was clearly explained to the Hon’ble Minister for Fisheries and the concerned officials that the current situation of very high prices of Soya DOC coupled with artificial scarcity has put the Shrimp and fish feed manufacturing industry in severe stress. The industry has already been battling with the problems of rising input costs, lower demand of feed owing to COVID-19 and cheaper imports from South East Asia, particularly from China and Vietnam. Further, due to the COVID-19 lockdowns in many importing countries across the world, exports have fallen sharply and international market prices have also fallen drastically. China has been rejecting many containers on simple excuses deliberately violating the international trade practices. Due to the pandemic situation, the increase in shrimp and fish feed cost is having a cascading effect on the entire value chain of the shrimp and fish industry. It was also underlined that increased feed cost will result in higher cost of production to the shrimp and fish farmers, processors and exporters thereby denting India's competitive advantage in the international market.
Further it was also mentioned that the scarcity of DOC and high costs will also hurt the livelihoods of 15 lakh fish farmers and about 100 lakh workers engaged in different cycles of production, post- harvest and marketing operations.
The Hon'ble Prime Minister was requested to save the shrimp and fish industry from crisis by allowing duty free import of Soya bean meal (Soya DOC) by the Shrimp and Fish Feed Manufacturers in India to meet the needs of shrimp and fish feeds in the country and to immediately stop Soybean commodity trading in the commodity exchanges, stop unauthorized hoarding of seed and prevent speculative price hikes in the country.
In addition, with a view to avert the worsening crisis, SFMA has made efforts to bring these issues to the notice of Secretary Fisheries, Government of India, Secretary Ministry of Commerce, Chairman MPEDA, office of the PMO and various concerned agencies through several memoranda and virtual and personal meetings. But the things did not move positively in the GOI while the situation was worsening day by day in the field.
Therefore, the Shrimp Feed Manufacturing Association (SFMA) and the AllIndia Poultry Breeders Association have jointly sought appointment of the highest dignitaries of the Government of India. A high level delegation of SFMA led by Sri B. Mastan Rao, Chairman of BMR group of Industries & the President SFMA, Sri Indra Kumar Charman of All India Sea Food Exporters Association & MD of Avanti Sea Foods, Sri Bahadur Ali Chairman, All India Poultry Breeders Association, Sri Alum Gulrez, Secretary SFMA and CEO, IB group along with other senior office bearers of Shrimp and Poultry and dairy sector have met a galaxy of Ministers and the senior Government functionaries in Delhi on 30th and 31st July and made a fervent appeal for immediate permission to import at least 15 lakh MT of GM soya meal
The high level delegation met Sri Piyush Goyal, Hon’ble Minister for Commerce and Industry, Government of India, Sri Som Prakash, Hon’ble Minister of State for Commerce and Industry, Sri Parshottam Rupala Hon’ble Minister for Fisheries, Animal husbandry and Dairying, Government of India Sri Sanjeev Balyan,Hon’ble Minister of State for Fisheries, Animal husbandry and Dairying, Government of India, Sri L. Murugan , Hon’ble Minister of State for Fisheries , Animal husbandry and Dairying. They have also called on Sri V. Vijayasai Reddy, Hon’ble MP, Rajya Sabha and Chairman of the Standing Committee of Ministry of Commerce.
In all these meetings all the delegates of Poultry, Shrimp and Dairy industry had given written memoranda and explained the importance of these sectors to Indian economy, rural employment, livelihoods of poor and foreign exchange implications. They have also emphasized about the impact of the high prices of Soya DOC and its scarcity on the productivity and cost of production of shrimp, fish, eggs and chicken and how the consumers are also badly hit due to the inevitable higher consumer prices. They highlighted the urgency to intervene and allow import of the Soya GM DOC on emergency basis.
Thus the matter has been escalated to the highest level and the Government of India has approved to permit import of Soya DOC on the request of Shrimp and Poultry Feed Manufacturers under Chapter 23 of the Customs Rules only for feed purposes.
All the Shrimp feed manufacturers have profusely thanked Hon’ble Prime Minister Sri Narendra Modi ji, Hon’ble Minister for Commerce Sri Piyush Goyal ji, Hon’ble Minister for Fisheries and Animal Husbandry Sri Parshottam Rupala ji, Hon’ble Minister for Environment and Forests Sri Bhupender Yadav ji, Honble Minister of State for Fisheries Sri L. Murugan ji , Hon’ble MP (RS) and Chairman of the Standing Committee for the Commerce Ministry Sri V. Vijayasai Reddy garu, Secretary AH Sri Atul Chaturvedi ji , Secretary Fisheries Sri Shri Jatindra Prasad Swain ji ,AND THE Joint Secretaries Dr.OP Chaaudhary and Sri Sagar Mehra. With the herculean efforts of SFMA under the leadership of its President Sri B. Masthan Rao, Secretary Sri Alum Gulrez, All India seafood association President Sri Indra Kumarand others, the acute problem of high prices and scarcity of Soya DOC has been resolved and it is hoped that that this step would boost aqua culture in general and Shrimp culture in Particular.