Andhra Pradesh Govt’s Decision to Revise Power Subsidy Surprised Aquafarmers

The State government's recent decision to revise power subsidies has come as a surprise to the State's aquaculture farmers. Aquaculture farmers' electricity bills will be doubled as a result of the revised tariffs. In response to the decision, the state's aquaculture farmers plan to declare a "culture holiday" in the coming season.

It should be noted that in 2019, Chief Minister YS Jagan Mohan Reddy announced a subsidized rate of Rs 1.50 per unit for aquaculture in the State, which was put into effect. However, the State Government has now issued the GO revising power tariffs for aquaculture.

According to the latest order, farmers who cultivate shrimp and fish on less than five acres must pay Rs 1.50 per unit, while farmers who cultivate more than five acres must pay Rs 3.85 per unit. There will be a charge of Rs 3.85 for all fish/shrimp tanks located outside of the aqua zones, regardless of size. For the time being, the power tariff reduction will be extended to fish/shrimp tanks based on e-fish data. According to the GO, the power tariff concession will be extended later to fish/shrimp culture tanks registered under the APSADA Act, 2020.

According to sources, nearly 3.75 lakh acres of land in the state have been dedicated to aquaculture. Almost 55% of farmers have been cultivating in non-aqua zones. More than 95% of farmers cultivate aquaculture, particularly shrimp, on more than 5 acres because less than 5 acres is not viable for them.

Shrimp culture necessitates the use of aerators and sunlight to ensure that the shrimp grow in healthy conditions in the ponds. Aerators typically require power for up to 16 hours per day. Power is also required to pump water into and out of the ponds on a regular basis. Running aerators and water pumps for one acre of culture for one month requires nearly 10 hp of power supply.

"I grew L Vannamei (white leg shrimp) on about 9 acres." After subsidy, I usually pay Rs 60,000 per acre per year. I now have to pay Rs 1.20 lakh per year. Because of the increased power tariffs, the cost of cultivation will more than double. "The majority of the culture was taken up in more than 5 acres across the sea coast mandals," K Ramireddy, a farmer from Nellore division, said.

Farmers have started aquaculture in Kota, Vakadu, Chittamur, Chillakur in Tirupati's Gudur division, Manubolu, Venkatachalam, Muthukur, Thotapalligudur, Indukurpeta, Kovur, Kodavaluru, Vidavalur in Nellore division, and Allur, Bogole, Kavali in Nellore division. Following the implementation of a power holiday for processing units, shrimp processing units reduced production due to a lack of power supply, resulting in a price crash for aqua products.

Shrimp prices have dropped in the market within a week of the power outage. The price of a 100-count shrimp has dropped to Rs 220 from Rs 280, the price of a 90-count shrimp has dropped to Rs 230 from Rs 270, the price of an 80-count shrimp has dropped to Rs 250 from Rs 200, the price of a 70-count shrimp has dropped to Rs 270 from Rs 320, and the price of a 60-count shrimp has dropped to Rs 290 from Rs 340.

"With the increased power tariff, I planned to maintain the culture for getting 70 count shrimp, which is a costly affair." Now I've decided to harvest the shrimp at a rate of 100 per kilo. "The government should reconsider its decision because farmers will have to pay twice as much in electricity bills due to the revision subsidy to aquaculture," said N Sukumar Reddy, a farmer from Gudur division.

If the farmers decide to declare a "culture holiday," it will have an impact on aqua product exports to other countries. On the other hand, if production falls, the price of aqua products, particularly shrimp and fish, will rise.