Rising Feed Costs and Global Gluts Pressure Indian Shrimp Farmers Despite Volume Growth

Indian shrimp farmers are facing significant financial pressure as rising feed costs threaten the operational viability of aquaculture farms across the country. This comes despite a reported 3 per cent increase in overall production volumes.

Ravikumar Yellanki, President of the All-India Shrimp Hatchery Association, pointed out that shrimp feed prices have risen due to the impact of El Niño on key agricultural and marine raw materials. Weather-related disruptions in major producing regions have restricted the availability of essential feed ingredients such as fishmeal, fish oil, and soybean meal. Consequently, feed manufacturers are experiencing squeezed margins as they are unable to fully pass on these increased raw material costs to farmers.

Compounding these challenges, unseasonal rains and warmer water conditions have led to increased Vibrio loads. Industry stakeholders note that higher bacterial loads affect shrimp health, feed utilisation, survival rates, and overall farm productivity. As a result, farmers are spending more on feed without seeing a corresponding improvement in shrimp realisations.

On the market front, shrimp prices continue to remain subdued. This is largely driven by a glut in the global market caused by overproduction in Ecuador, one of the world's largest shrimp-producing countries and a major competitor to India.

Despite reduced penetration in the US market, Indian shrimp exports are performing reasonably well. Demand from other overseas destinations has helped sustain export momentum, according to industry representatives.

Industry data indicates that shrimp feed prices have surged by ₹10 to ₹16 per kg, bringing per-tonne costs to roughly ₹1,20,000 to ₹1,75,000 depending on the brand and specifications. Specifically, Black Tiger feed prices have increased by ₹12 per kg, raising average prices to over ₹1,22,000 per tonne.

Calculations show that farmers require roughly 1.3 to 1.7 tonnes of feed—and higher quantities in disease-affected ponds—to produce a single tonne of shrimp. This dynamic pushes total production costs above ₹2.8 lakh per tonne, leaving operating margins heavily constrained.

"The current situation in the aquaculture sector highlights the vulnerability of traditional farming models to global supply chain disruptions and climate variables like El Niño. When input costs rise sharply while global oversupply keeps end-realisations low, small and medium-scale operators bear the heaviest brunt. For sustainable growth in agri-export businesses, stakeholders must focus on operational efficiency, disease management, and diversifying export destinations to cushion against single-market downturns and margin compression." — Dr. Shishir Gupta, Founder & CEO, StartupLanes