US tariffs have become a hindrance to aqua farming, known as a dollar crop. The 50 percent tariff imposed by President Donald Trump has recently become a major threat to the aqua sector. Prawn farming has been increasing in large quantities in Srikakulam district for the past two decades.
It is being cultivated officially in 1,500 hectares and unofficially in 2000 hectares. 8000 workers are being employed directly and indirectly. 557 farmers have taken permission from the government to set up ponds.
stoThe cultivation area is increasing every year in Ichchapuram, Kaviti, Sompeta, Vajrapukotturu, Santhabommali, Polaki, Gara, Etcherla and Srikakulam mandals.
The future of the aqua sector in the district has become uncertain due to the impact of US tariffs. Previously, it was 16.52 percent, but after Trump became president, it increased to 34.73 percent. Farmers are worried after the recent announcement of 59.73 percent tax.
They are also worried about whether traders will buy the crop they have invested lakhs of rupees in and are cultivating at the current prices or what if they suffer losses.
Vanami and Black Tiger varieties of shrimp are cultivated in about 3000 hectares in the district. A crop worth about Rs. 100 crore is produced annually.
The latest Trump decisions are having a negative impact on the price of shrimp. More to America: After granite, shrimp is the only thing exported internationally in the district. Babies smaller than 100 count are exported to China.
After 30 counts, larger ones go to America in large quantities. They are also exported heavily to Japan, Thailand, Indonesia, and Arab countries. Compared to other countries, they are exported more to America. The goods purchased from farmers here are being exported abroad after being cleaned at centers in Visakhapatnam, Kakinada, Anakapalle and other places.
The maximum price paid for 100 count shrimps was Rs. 270 per kg. Due to the impact of Trump’s tariffs, the price has been cut by up to Rs. 50 per kg. Traders and farmers say that it is likely to decrease further if the impact of the tariffs is not removed.
The developments taking place in the aqua sector, which was once known as a dollar crop and brought in a lot of money, seem to be making the future questionable. During the YSRCP regime, the prices of leases, fodder, medicines, electricity charges and diesel have increased drastically.
Farmers are expressing their concern that there is no investment opportunity as middlemen are reducing the prices of shrimp. Farmers complain that in the past, they would have made a profit of Rs. 4 lakh to Rs. 6 lakh if they cultivated an area of a hectare, but now they are only incurring losses.