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Home2020 (Page 51)
R&D, Seeds

By Dr Shivendra Bajaj, Executive Director, Alliance for Agri Innovation (AAI) 

 

Whenever a new technology is introduced, there are always some who will challenge the usefulness of such technology. It may be either a fear of unknown or just being plain scepticism, but we always see the debate on both sides. This debate is good as long it is healthy and allows everyone to put forward their viewpoints and let the data and science to speak for itself.  The debate about Genetically Modified (GM) crops is no exception. However, the fact is, GM technology is not new anymore. This year is the 25th anniversary of the commercialization of GM crops. During these 25 years of cultivation, more than a trillion meals have been served which had one or more ingredients derived from GM crops and there is not a single substantiated claim of any ill effect on health which could be attributed to GM crops. In India, GM cotton or commonly known as Bt cotton (because of Bt gene that controls a certain group of insects) has been successfully cultivated for the last 18 years and today more than 95 per cent  cotton growing area in India is under Bt cotton. Yet, there are some groups in India who oppose GM crops regardless of any data or the fact that we have been consuming the oil derived from Bt cotton and the livestock is fed for that long and again without a single substantiated claim of any ill effect.

This opposition to GM crops as a principle was highlighted when recently, a group wrote to the Chief Ministers of different states not to even allow research field trials of Bt Brinjal in their states. While a debate on a technology (even though it is proven for last 25 years) based on hard facts and not emotions or scare mongering is welcome but opposition to even conduct research field trials is not justified by any means.  We should remember that earlier, a different version of Bt Brinjal was trialled and approved by then Genetic Engineering Approval Committee. However, the then Environment Minister put a moratorium on the commercialization of Bt Brinjal in 2010 and unfortunately that moratorium continues.  It is ironical that Bangladesh went ahead, did the research that suited to their environment, while accepting the safety data from India and commercialized it in 2014. If the then Government of Bangladesh had caved in from the pressure of its NGOs and didn’t conduct research field trials and eventually approve, its farmers would have lost the benefits that they are enjoying now in terms of resistance to insects and higher yields. 

In Bangladesh, Bt Brinjal has provided around 20 per cent  increase in yields and approximately 22 per cent higher revenue compared in non Bt varieties. We should also note that this data is published in peer reviewed science journal by independent organizations. Coming back to India, now another company has introduced a different Bt gene in Brinjal which was developed by the National Institute of Plant Biotechnology under ICAR. To test the efficacy of this locally developed Bt gene, impact on food/feed/environmental safety, research field trials are necessary. If even research field trials are not allowed, we will not know the usefulness of this technology. It is also interesting to hear the surprise and market monopolization concerns that have been attributed to the opposition to the field trials. In fact, if these trials continue and usefulness of this second Bt Brinjal technology is determined, it will provide competition to the earlier Bt Brinjal given the moratorium is lifted and commercialization takes place. 

I wrote an article almost five years ago that it’s time to give science its fair due when it comes to GM crops and now, its overdue. Opposition to GM technology should not be entertained without hard science facts and allowing research trials is the only option to know these facts. The “Not to Bt” should not be an option otherwise we will not know the “To Bt” scenario. We know through Bt cotton in India and Bt Brinjal in Bangladesh experience that the benefits of “To Bt” choice by far are preferable to the losses of “Not to Bt”.

By Dr Shivendra Bajaj, Executive Director, Alliance

Agro chems – Chemicals, Finance

Sales declined 7.53 per cent to Rs 388.90 crore in the quarter ended June 2020 as against Rs 420.57 crore during the June 2019.  

Net profit of Sharda Cropchem rose 22.54 per cent to Rs 27.89 crore in the quarter ended June 2020 as against Rs 22.76 crore during the previous quarter ended June 2019. Sales declined 7.53 per cent to Rs 388.90 crore in the quarter ended June 2020 as against Rs 420.57 crore during the previous quarter ended June 2019.

The Company is a fast growing global agrochemicals company with leadership position in the generic crop protection chemicals industry. It has made deep inroads in the highly developed European and US markets which are characterized as high entry barrier markets. It also has a significant presence in other regulated markets such as LATAM and rest of the World.

The Company has an asset-light business model whereby it focuses on identifying generic molecules, preparing dossiers, seeking registrations, marketing and distributing formulations through third party distributors or its own sales force. The Company’s core competence lies in developing product Dossiers and seeking product registrations in different countries.

 

 

 

Sales declined 7.53 per cent to Rs

Agro Universities, Oilseeds, R&D

 It will give 30% higher yield compared to the existing varieties and shorter crop period 

Two new groundnut varieties with high oleic acid content developed by Hyderabad based International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) in association with the Indian Council of Agricultural Research-Directorate of Groundnut Research would be made available to the farming community in Telangana from the next season.

This was stated by the Minister for Agriculture, Singireddy Niranjan Reddy, after a meeting with a team of scientists from ICRISAT. The Minister stated that the new varieties known as Girnar 4 (ICGV-15083) and Girnar 5 (ICGV-15090) would be most suitable for cultivation in the erstwhile Mahabubnagar, Rangareddy and Nalgonda districts. 

Niranjan Reddy said the new varieties could withstand moisture stress and Telangana state can produce high quality groundnuts. Groundnut is largely cultivated in Rabi season (post-rainy) in Telangana state under irrigation. The harvesting is done in dry months rendering the produce to be less prone to Aflatoxin contamination. This enables production of high quality and food safe groundnuts in Telangana state. 

The Minister noted that they would also give 30% higher yield compared to the existing varieties and the crop period would be less than four months — 115 days. The new varieties would also ensure better price to the farmer. 

ICRISAT scientists sought the cooperation of the State government for seed production on a large scale with the help of Telangana State Seed Development Corporation (TSSDC).

 It will give 30% higher yield compared

Agro Universities, R&D, Seeds

The wheat has good combination of yield, protein, straw strength and disease resistance. 

 

The University of Minnesota has released a new hard red spring wheat variety called ‘MN-Torgy.’ MN-Torgy features a good combination of yield, protein, straw strength and disease resistance. 

Jim Anderson, University of Minnesota wheat breeder, Department of Agronomy and Plant Genetics, says: “MN-Torgy has shown its promise to perform well across the wheat growing region and its straw strength is better than higher yielding varieties.” 

MN-Torgy stood out in both state and regional trials including the Uniform Regional Nurseries trials where it finished 3rd out of 30 entries in 2017 and 2018.

Jochum Wiersma, University of Minnesota Extension Agronomist, stresses that: “MN-Torgy’s performance in UMN field trials and NDSU trials showcase its adaptability and highlight its value.” 

The new release is named in honour of Dave Torgerson, a familiar name for northwest Minnesota farmers, who retired as Executive Director of both the Minnesota Wheat Research and Promotion Council and the Minnesota Association of Wheat Growers in 2019. 

“I was lucky to have worked for wheat growers who supported wheat research and the UMN wheat breeding program so strongly,” says Dave Torgerson. “When growers see the name it should remind them of Jim Anderson and the entire UMN breeding team who work tirelessly to develop better varieties for them.”

 The support of the MN wheat organizations under Torgerson’s tenure has been instrumental in the release of other recent University of Minnesota spring wheat varieties; MN-Washburn (2019), Lang-MN (2017), Shelly (2016), Bolles (2015), Linkert (2013), and Rollag (2011). In addition, their support has been critical for other small grain research, which has benefited farmers throughout the upper Midwest. 

Performance data and comparisons to other popular MN wheat varieties are included in the tables below. Additional performance data of previously released varieties can be found on the Minnesota Agricultural Experiment Station website at www.maes.umn.edu. Prior to being formally named, MN-Torgy was tested as MN14105-7.

The wheat has good combination of yield,

Agrotech, Dairy

At present, registration of more than 4500 artificial insemination calls done by Amul Call Centre daily. 

 

Amul Dairy has decided to digitize the artificial insemination service in its operational area. It was initiated on an experimental basis in the year 2019 in 25 village milk producer societies and was monitored and studied for one year. 

After getting appreciable functional and operational results, all the 1200 village level milk producer societies of Amul Dairy milk shed area have been covered under digitalization. More information about this initiative shared by Amit Vyas, Managing Director of Amul Dairy, Anand. On registration in Amul call centre for AI, an automatic message is sent to the milk producer as well as the artificial insemination technician of the milk society through mobile.

The artificial insemination technician immediately reaches the milk producer’s house and performs the artificial insemination and updates all the information in the mobile on the spot, the message of artificial insemination completion is received at Amul call-centre and milk producer. Pregnancy diagnosis is done after 2.5 month for which artificial insemination is notified through SMS. If the animal is found pregnant, the information is updated in the mobile application system. After nine months, calving related information like sex of calf is registered in the mobile application along with its date of birth. With this information, deworming and vaccination can be planned by Amul Dairy. There is no need to keep physical record by milk producer as all the information is stored by Amul Dairy through software system.

Digitization of artificial insemination provides instant service to the milk producers as well as information of milch cattle is also stored in the mobile software system and can be analysed. 

The artificial insemination technicians do not have to write or save any kind of register and every information has to be filled in the mobile application system on the spot. This help to save a lot of time and they can perform better.

 Vyas further said that a very good response to this method has been received from the members of all village milk producer societies in the Amul Dairy milkshed area. Digitization of AI services will help to get the data of pregnancy months, calving prediction and milk production accordingly. This will help to plan milk processing at plant level. At present, registration of more than 4500 artificial insemination calls done by Amul Call Centre daily. Still Amul Dairy is trying to make this method more effective and efficient. Amul Dairy perform more than 1 million artificial insemination annually in milk shed area. Through digitalization, transparent information as well as its analysis can be used to make accurate decisions and make the animal husbandry business flourish.

 

 

At present, registration of more than 4500

Agrotech, E-commerce

By Dr Venkat Maroju, CEO SourceTrace

Agriculture around the world has gone through the most disruptive phase in decades. When Covid has been defeated, the old challenges will be around compounded by global shrinking economy, rising poverty and impact of accelerated climate change that we have seen recently. How do we start from a weaker position than before and fight a challenge bigger than faced by last few generations?

While it is agreed that incremental changes may not be enough, there are a lot of debates around what can be called transformational. The recent policy changes in India are being seen as providing a major impetus to the sector. But by no means are those measures enough. We need to look at adoption of digital technologies in this context.  

While the number of technology providers has boomed in India, the rate of adoption is still sluggish. Partly due to problems in financing adoption and partly due to lack of digital infrastructure and large showcase projects that can encourage trust. However, the Covid era will be remembered for two things: unforeseen disruption and unprecedented collaboration. Since the coming of digital technologies, this is the first time there was an industry-wide effort to work together in a pure problem-solving mode. 

Consolidation will be key

There are a lot of opinions on whether the last decade saw nominal or phenomenal growth for agritech as a sector. But one thing for sure, the coming decade will be about consolidation. For example, we saw a lot of experiments taking place in farm to home space during the lockdown. Farmer groups, logistics companies, entrepreneurs, ecommerce startups and volunteers came together in unprecedented ways to keep the supply chain functional. As a result, a lot of direct farm to home initiatives flourished.  

However, will those small businesses retain the lead, will the consumer continue to opt for this when ease is not the prime criterion? This is where collaboration will be key. Companies need to come together to create a value proposition that goes beyond one parameter, that builds a use case that the retailer can’t.

Can we just not deliver but connect the farmer with the customer? Can we give the customer the tools to decide how much information he needs and whether he wants to just buy or enter into an interactive relationship? These opportunities are beyond any one solution. While companies have shown incredible readiness to collaborate during past few months, it will be interesting to see if we still see value in collaboration or move back to the old ways.

Data is the logic that builds partnerships 

While collaboration as an idea is laudable, it needs common grounds to enable partnerships. Data can form that common ground. The agriculture ecosystem is still very fragmented and there are enough gaps for collaborations to be mutually profitable. The daunting data gaps can be exploited as business opportunities. After almost a decade of agritech startups competing against each other, now the era of partnerships is upon us.

Making adoption easy 

Most clients are still confused about technology. We are guilty of throwing at him a ton of literature on pros and cons of remote sensing, drones and IOT sensors. The new era will be one when these solution providers will tie up in the backend and provide the solution that a customer needs, not three different brochures. 

We work in a sector where change is needed urgently but the wheels turn slowly. We don’t have the luxury of time. We need to come together and accelerate the process ourselves and not wait for the ecosystem to evolve.  

Partnering your way to growth

Let me give you an example of how we are following this at SourceTrace. When our customers seek traceability solutions, food quality is an intrinsic part of the discussions. It gives us and quality assaying companies to come together. And, that is how we built TraceNext with AgNext, a platform that brings blockchain based traceability and AI enabled quality testing for the first time. The partnership increases the value proposition of our individual solutions and makes it easier for the client to implement advanced solutions. 

This is a model that can be followed by others too. The goals can be to:

  • Integrate complementary solutions
  • Explore new geographies together
  • Share sales/extension staff
  • Outsource internal technology requirements
  • Service different sections of the value chain 

Business leaders can decide on the partnership model and modalities based on their operational and strategic needs. But the path to fastest growth is a shared one.

 

 

By Dr Venkat Maroju, CEO SourceTrace

Agro chems – Fertilizers, Trade

Increasing prices and limited supply has hit the business

Indian state owned importers National Fertilizers Limited (NFL) and Gujarat State Fertilizer & Chemicals Limited (GSFC) have reissued their respective tenders to buy 10,000t of Diammonium phosphate (DAP) after their initial tenders did not receive any offers. Due to the new government rule on public procurement which does not allow Chinese producers and Chinese-owned firms from participating, both importers are not likely to receive many offers.

The limited availability of DAP for September shipment can be deduced from the fact that even trading firms without Chinese ownership did not submit offers under NFL’s tender. Indications for DAP in India have risen to the mid-$330s/t cfr, but latest concluded business haven’t touched $330/t cfr.

 In Pakistan, importer Pakarab has reissued its tender to buy 100,000t of DAP. Chinese producers are focusing on their domestic market and are waiting for prices to rise further before selling the few remaining September-loading vessels. Several Chinese producers have withdrawn their tenders for September shipment. Indications have risen to the high/mid-$320s/t fob though confirmed sales are yet to increase beyond $320/t fob.

 

Increasing prices and limited supply has hit

Acquaculture, R&D

Rs 5.66 crore has also been sanctioned for the three-year study by the MPEDA. 

The Central Marine Fisheries Research Institute (CMFRI) launched a research project to assess the status of 27 species of marine mammals and five species of sea turtles in Indian waters.

 The study aims to address the crucial information gap on status of stocks of marine mammals as well as of sea turtles. Rs 5.66 crore has also been sanctioned for the three-year study by the Marine Products Export Development Authority (MPEDA).

 This research assumes significance in the context of emerging seafood trade-related challenges faced by the country. 

The National Oceanic and Atmospheric Administration (NOAA), USA had issued import provisions of Marine Mammal Protection Act (MMPA), stating that seafood-exporting countries should not allow intentional killing of marine mammals in commercial fisheries. 

For exporting fish and fish products, the US has given a five-year exemption period starting January 1, 2017 to nations for developing regulatory programmes by assessing marine mammal stocks. 

J.K. Jena, Deputy Director General of Indian Council of Agricultural Research (ICAR), while launching the project through a webinar, said that this research project would bolster the preparedness of the country in meeting the challenge faced by the seafood export industry, and enhance the indigenous capacity to address the emerging conservation concerns of marine mammals and sea turtles. 

Gopalakrishnan, director of CMFRI, said marine mammals and sea turtles play key roles in maintaining marine ecosystems. 

“While government and non-governmental organisations have undertaken studies on distribution, biological and ecological characteristics, the information on status of stocks of marine mammals as well as of sea turtles is not available”, said the director.

K.S. Srinivas, chairman, MPEDA said the country is looking forward to this project with a hope that it would help solve the issues related to seafood exports in the country and is being implemented with the technical support of NOAA.

                                                                                                                 Source-IANS

 

 

Rs 5.66 crore has also been sanctioned

Organic

Sikkim became the first state in the world to become fully organic .

The demand for healthy and safe food is showing steady growth and with it the rise of organic farming globally as the world continues to be besieged by the COVID-19 pandemic. India ranks first in the number of organic farmers and ninth in terms of area under organic farming.

Sikkim became the first state in the world to become fully organic and other states such as Tripura and Uttarakhand are following suit. Two dedicated programs, Mission Organic Value Chain Development for North East Region (MOVCD) and Paramparagat Krishi Vikas Yojana (PKVY) were launched in 2015 to encourage organic chemical free farming.

The major organic exports from India have been flax seeds, sesame, soybean, tea, medicinal plants, rice and pulses, which were instrumental in driving an increase of nearly 50 percent in organic exports in 2018-19, touching Rs 5151 crore. The Green Caravan of Kohima created market linkages from all villages of Nagaland to urban areas for vegetables, handicrafts and handlooms (www.instamojo.com).

There were online sale of fruits and vegetables by FPOs in Maharashtra and doorstep delivery in specially designed electric vans in Punjab. The organic e-commerce platform www.jaivikkheti.in has been strengthened for directly linking farmers with retail as well as bulk buyers.

 

Sikkim became the first state in the

Finance, Schemes - NABARD

 It will help in creating post-harvest infrastructure in villages and rural areas to generate employment opportunities 

 

 

National bank for agriculture & rural development or NABARD Assam in Association with State Government has recognized 46 Primary Agricultural Co-operative Societies (PACS) for a monetary aid under Agri- Infra Fund. 

This endowment was formally started by Prime Minister of India on August 9, 2020. As a part of the Government of India’s major agri-sector reformation, this will help in creating post-harvest infrastructure in villages and rural areas to generate employment opportunities for a wide range of consumers and activities regarding Agri- start-ups, agri-entrepreneurs and farmers. 

S.S Saha, CGM, NABARD, Assam claimed that Fund with a capital of Rs. 1 lakh Crore is proposed to be invested by government of India over a period of 4 years, which will help in accessing credit with a 3% interest subsidy up to a loan of Rs 2 crore further supported with credit guarantee to be parked with NABARD and NCDC. Moratorium for repayment under this financing benefit may vary between 6 months to 2 years. 

Saha also said that “in-principle” approval has been accorded by NABARD for 7 out of these 46 PACS recommended by Registrar of Coop Societies (RCS), Government of Assam, with a financial outlay of Rs.4 Crore in bringing out a solution for warehousing, cold storage and food processing units in Assam. He told that with the capital of Rs. 1 lakh crore of this flagship scheme will be a breakthrough for the rural economy in the country. 

 

 

 It will help in creating post-harvest infrastructure

AgroPolicy, Agrotech, R&D

It will identify high impact use cases of AI which would benefit both, the farmers and the policymakers. 

 

 The Telangana government launched the Artificial intelligence for Agricultural Innovation (AI4AI) programme, in collaboration with the Centre for the Fourth Industrial Revolution, India (C4IR), and World Economic Forum.

 The team from C4IR, WEF India worked closely with the Prof Jayashankar Telangana State Agricultural University (PJTSAU) and the Telangana government’s ITE&C department to identify high impact use cases of AI which would benefit both, the farmers and the policymakers.

 Speaking at the virtual launch, Telangana industries and IT minister KT Rama Rao said agriculture has been one of the most important sectors for Telangana and it is the right time to bring a digital revolution in this sector. “We feel that AI will offer immense possibilities for farmers, governments and all other stakeholders of the ecosystem,” he said. 

 “Telangana has defined its vision to be a global leader in emerging technologies, including AI, and has made rapid strides towards achieving the vision.” 

The government of Telangana has declared 2020 as the Year of AI to accelerate AI readiness and develop a conducive AI innovation ecosystem in the state, opening new avenues of AI-led innovation for social impact, especially in the public sector.

It will identify high impact use cases

North America

43% of Iowa’s corn and soybean crop damaged or destroyed

 The United States Department of Agriculture (USDA), on August 11, 2020 stated that  a powerful storm named Derecho that blew across the U.S. Midwest earlier this week has killed at least two people and caused widespread damage to millions of acres of crops in Iowa.

As it traveled from southeast South Dakota to Ohio, when it reached Des Moines, forecasters said wind gusts clocked at more than 100 mph devastating farm communities. Iowa Governor Kim Reynolds told reporters that early estimates indicate 10 million acres (4 million hectares) have been damaged in the nation’s top corn-producing state and many grain bins have been destroyed. 

This would mean about 43 percent of Iowa’s 2020 corn and soybean crop has been damaged or destroyed. State officials have said that farmers may be eligible for federal assistance as the state continues to assess storm damage.

 

 

 

43% of Iowa’s corn and soybean crop

Agro chems – Pesticides, E-commerce, R&D

This validates MustGrow’s natural science-based approach, utilizing the mustard seed’s natural defence mechanism 

 

 MustGrow Biologics Corp., announced successful proof-of-concept for its proprietary biological non-selective bio-herbicide, based on MustGrow’s signature mustard-derived approach to controlling unwanted pests and diseases.

MustGrow’s bio-herbicide internal work has focused on the pre-plant application of our natural mustard-based technology on small weeds and weed seeds.  Observations showed 100% kill of weeds, killing the plant from the roots up compared to the untreated control weeds – confirming previous third-party trials.  The length of control was recorded and has potentially demonstrated control of the weed seeds themselves.  This continues to validate MustGrow’s natural science-based approach, utilizing the mustard seed’s natural defence mechanism not only as a bio-pesticide, but now also as a bio-herbicide.  MustGrow is now in the process of running larger trials to reconfirm the efficacy, application rates and length of control.  The Company anticipates further trial results before the end of 2020.

“The developing characteristics of our active ingredient as a non-selective bio-herbicide represent a key application of our remarkable natural mustard-based technology,” remarked MustGrow CEO Corey Giasson.  “We are excited to potentially provide a natural solution for not only farmers but for home and garden use as well.”

In early 2020, MustGrow completed a series of application rate tests with Canada’s National Research Council to determine the applicability of MustGrow’s natural mustard-derived technology.  Using multiple application methods, herbicidal control was achieved after only 72 hours – killing the trial plants from the root up.  With this supportive data, MustGrow filed patents for method-of-use and composition-of-matter claims for a non-selective bio-herbicide.  MustGrow’s intellectual property suite is a platform for several crop protection categories, aiming to disrupt global agriculture markets that have traditionally been dominated by chemistry-based products.

Global Herbicides Market

According to industry intelligence group Phillips McDougall, the global herbicides market remained the dominant crop protection category in 2018, accounting for 42.7% of crop protection sales – $24.6 billion (+5.9% y/y). This market is expected to grow by $8.9 billion through 2023 (Source: Technavio).

The need for bio-herbicides is increasing as farmers, consumers and regulators seek alternatives to synthetic chemical products.  The dangers associated with synthetic chemical overuse is pushing these groups to naturally-sourced bio-herbicides, which are known for safe, environmentally-sustainable and consumer-friendly profile characteristics.

 

This validates MustGrow’s natural science-based approach, utilizing

Acquaculture, Trade

The interplay of falling demand and supply will decide the eventual prices, which will stay volatile through the coming months 

 

 

Global demand for shrimp is estimated to contract by 20 per cent due to the outbreak of Covid-19 pandemic around the world followed by localised demand disruptions. As per an ICRA note, there is bound to be considerable volatility through the year.

Higher-cost protein consumption like shrimp is also linked to economic conditions which in turn impacts demand. Falling shrimp prices has impacted farm stocking levels in several markets globally and in India, during April and May, however, stocking has started picking up in June with recovery in prices. Globally, markets like Vietnam, which have been able to control the pandemic better are increasing supply while countries like the recently hit Ecuador could see lower stocking and supply in the coming months.

Pavethra Ponniah, VP and sector head, ICRA, said, “Given the multiple countries involved, local conditions and the evolving situation around the pandemic, global supply predictions will be fraught with risk. However, there is a broad consensus on falling supply in the global markets. The interplay of falling demand and supply will decide the eventual prices, which will stay volatile through the coming months.”

The shrimp industry was first hit by the pandemic and lockdowns in China, a key player in global demand supply dynamics. Extended lockdowns, during the annual week-long Chinese New Year holiday, till well into February 2020 lead to a global demand-supply imbalance.

Subsequently, with the global spread of the pandemic across continents, deeper demand disruptions resulted in a sharp fall in Indian (and global) farm gate shrimp prices in early March 2020. Panicked farmers harvested their crop early, leading to an oversupply in few markets. Global buyers attempted to renegotiate prices and global prices stayed low till early May 2020. This impacted stocking levels in several markets, including India.

Although prices have recovered in May 2020 since Covid-lows on the back of Chinese demand and also in other key markets of USA and Europe, demand is limited to the retail segment. Developed markets source shrimp for retail and food services. Closure of foodservices globally has led to increase in home cooking and this has sharply altered buying patterns. 

Globally, retail store buying of frozen and value-added shrimp stock has increased, compared to foodservices earlier.  As retail outlets ran low on stock, buying recommenced in USA and European markets. Supply constraints in other sources of protein like beef and pork, also impacted by the pandemic, switched protein consumption to shrimp.

 Consequently, despite the weak market conditions, YTD May 2020, shrimp imports by USA alone grew by 3.8 per cent to 2.57 lakh MT, with strong off-take from Ecuador and Indonesia.

International trade in processed shrimp was an estimated 30.5 lakh MT in CY2019, of which India the largest exporter accounted for 6.65 lakh MT of exports, closely followed by Ecuador at over 6.34 MT of processed shrimp. Along with smaller exporting nations, Vietnam and Indonesia, the four countries together account for over 60 per cent of the global trade.

As for the largest importers, China, USA and Europe, imported 7-7.2 lakh MT each of processed shrimp in CY2019 followed by Japan a distant fourth. China with high levels of domestic consumption is not only the world’s largest importer but also largest shrimp producing nation.

 

Coming to the domestic shrimp industry, the shrimp farming community in India is highly fragmented and is a price taker, mostly from the larger processors. For the processors, the procurement price (from the farmer) is linked to global demand and hence buyer prices. The shrimp processing segment comprise of few large and several smaller players.

 

The larger processors have over the years been moving up the value chain from block freezing to IQF, further to value-added and eventually cooked shrimp. The smaller processors are more focussed on the block segment.

Although demand disruption has hit processors and farmers alike, the latter has to normally bear majority of the brunt of falling prices. However, as farm gate prices collapse, farmers stop stocking and availability of raw shrimp to processors reduces, impacting their volumes and margins. Processors have also been hit by manpower and logistics issue. Nevertheless, the low farm-gate prices in April and May led to several Indian processors procuring and cold storing the shrimp for later processing.

Ponniah adds, “During FY2021, ICRA expects shrimp processors to report volume declines across the board. Processors catering to specific markets could suffer from periodic disruptions like Ecuador’s supplies to China in the coming months. Further, processors catering to the food service sector would also be significantly more impacted than those selling for retail sales. Impact on processor margins would be a function of global prices in key source markets, the ability to source profitably from farmers and keep factory utilisation levels high with adequate labour.”

The interplay of falling demand and supply