Impact of Corona Virus Disease (COVID-19) related lockdown on sector In : Issues and way forward

ICAR-CIBA, Chennai: 02.05.2020

Background

Fisheries and aquaculture sector transport and all the business activities contribute around 1% to India’s Gross except the essential commodities and Domestic Product (GDP) and over 5% medical emergencies. In this backdrop, to the agricultural GDP. Brackishwater it is important to look at the economic aquaculture, the farming of shellfishes impact of the present lockdown and and finfishes along the coastal line of its trickling effect on the Indian shrimp the country and in inland saline areas farming, being one of the major is a vibrant farming sector, under the brackishwater aquaculture sector, its aquaculture umbrella. Brackishwater stake holders including farmers. aquaculture sector is dominated by the shrimp farming, is the economic While shrimp farming is engine of Indian aquaculture, when concentrated mostly in the coastal consider the significant contribution states from West Bengal to Gujarat, of this sector in food production, majority of the critical inputs like, employment generation and economic seed, feed and other farm inputs are benefits. Farmed shrimp production produced in Andhra Pradesh and touched 7.0 lakh tonnes in 2019, of Tamil Nadu and transported to all which 87% is exported to USA, , the shrimp farming states, including , EU and South East , earning the recently emerging inland saline a robust foreign exchange to the tune aquaculture areas in Punjab, Haryana of Rs.35,000 crores (MPEDA, 2019). and Rajasthan. The allied processing infrastructure is spread across the Coronavirus disease (COVID-19) maritime states. About 12 lakh families reported for the first time in China are dependent on this sector directly during December 2019, later declared and indirectly for their employment as world Pandemic on March 11th and income to sustain their livelihoods. 2020 by world health organization Interstate and intrastate movement (WHO), has so far infected more than of seed, feed, inputs and produce for 3.22 million people across the globe processing and export are of utmost including India, killing close to 2 lakh importance for sustaining shrimp people at the time of preparation of aquaculture in India. Therefore, it is this document (27 April 2020). The important to look at the important highly contagious nature of the COVID components of shrimp aquaculture virus and absence of therapeutics and sector such as hatchery, farming, vaccine, many countries have forced to inputs suppliers, processing adopt national lockdown to contain its and trade including manpower to spread. India has imposed countrywide understand the likely impacts of total lockdown from 25th March to 3rd lockdown and social distancing in the May 2020 restricting the movement shrimp value chain in the country. of people, closing down the public Online survey to gauge the opinion of stakeholders

ICAR-CIBA being a national other digital platforms. A random R&D institute in the fore front sample of 504 stakeholders including of brackishwater aquaculture farmers, hatchery operators, input development in India, conducted dealers, processors, aqua-professionals an online survey to understand the and academicians across the states impact of COVID-19 related lockdown (Fig.1&2) responded to the survey and on the shrimp farming sector in April, expressed their opinion. 2020. A digital questionnaire with 44 questions related seed supply, inputs The responses received were supply, farming, marketing and social processed component wise to evaluate issues was posted through our institute the impact of national lockdown on this android App ‘(CIBAShrimpApp)’ and dynamic agribusiness sector.

West Bengal Gujarat 9% 16% Fig. 1: COVID-19 Impact Survey: Odisha State wise responses Maharashtra 9% 8%

Andhra Pradesh Rest of India 33% 6%

Tamil Nadu 19% Farmers : 46.08% Consultants, Technicians and professionals: 40.38%

Researchers: 5.23%

Hatchery operators: 4.04% Fig. 2: Stakeholders participated in the survey (N = 504) Input dealers: 2.84%

Processors: 1.43% Shrimp seed production and supply

Since 2010, exotic Pacific white of shrimp seed. Almost half of the 70 shrimp ( vannamei) is the billion annual shrimp seed requirement candidate species farmed in the for stocking is produced during March- country, which accounts for the 90% of April. the farmed shrimp production. Indian hatcheries imports Specific Pathogen Most of the hatchery operators Free (SPF) brood stock mainly from (>90%) participated in the survey were USA, Madagascar, and Hawaii apprehensive about the import of after due quarantine clearance by vannamei brood stock and sourcing Govt. of India through the Aquatic of polychaete worms the vital fresh Quarantine Facility (MPEDA-RGCA- feed for shrimp brood stock. Majority AQF) located at Chennai. During (78%) of the respondents reported 2019-20, 1,24,957 pairs of brood a drop in the sale of seed to the shrimp were imported from the 14 tune of 30-40%, in addition to the authorized suppliers from abroad constraints in availability of labour, to cater the needs of 311 hatcheries technical staff and transportation and 90 nauplii rearing centers. During (Fig-3). As reports emerged during the the first three months of 2020, the second fortnight of February and early country has imported about 63,430 March about the COVID-19 spread in pairs of vannamei which China, EU countries and USA, shrimp was 32% higher compared to the same farmers scaled down the stocking, period in the previous year 2019 (CAA, leading to a reduction in the farming 2020). This indicates that adequate area in the current cropping season, vannamei brood stock was available foreseeing a slump in the demand for seed production for the first half in the international shrimp markets of the year. In addition to SPF brood due to economic slowdown driven by shrimp, hatcheries also need import Covid 9 pandemic. It was reported that of speciality feeds, live feeds (Artemia sizable number of hatcheries destroyed cyst and Polychaetes) and several 30-40% of their seed production due growth promotional products mostly to lack of demand. Similarly farmers from south East Asian countries and, who had a standing stock resorted to unavailability of these inputs would ‘panic harvesting’ of smaller size shrimp affect the hatchery seed production and sold at lower prices to reduce the and the seed quality. Further, ban on possible larger financial losses. This international air cargo and related interruption in staggered harvesting disturbances in the functioning of and stocking might lead to enhanced Aquatic Quarantine Facility during demand in seeds for the next crop, April 2020 might affect the vannamei where hatcheries may not be able to broodstock availability and that would meet the increase demand for shrimp influence the production and supply seeds, due to lockdown constraints. Unavailability of laborers 4

Shortage of skilled workers 3

Lack of transportation facility

Inadequate supply of brood stock 2

2.20

2.33 1

2.67 3.17 Fig. 3: Challenges faced by shrimp hatcheries due to COVID 19 lock-down: mean score and rank

Farming scenario and farmers

The major stocking season in culture and the market. About 25% of Indian shrimp farming is during March- the farms were in Phase-I with less than April which was disrupted due to its 30 days of culture, 34% were in phase-II coincidence with the national lockdown with 30 to 80 days of culture, and about brought in by the same period. The 14% were in above 80 days of culture present scenario of the farming as (DOC). The DOC reflects the financial expressed by the participants revealed impact on the farmer, where farms in a mixed picture (Fig. 4). About 27% of phase I and II may not, realise their farmers prepared their ponds but did investment, while those in phase III, not stock due to difficulty in accessing could make break even or small profits. the quality seed, uncertainty over the Constraints in sourcing the seed, its usefulness, especially during the increased feed cost by Rs.6-7/kg and lockdown period. Further, the spare accessing the farming requirements parts for aerators, pumps, generators (Fig-5) due to COVID19 lockdown or other machineries required for caused the reduction in farming area farming operations were not classified to the tune of 40% in the current as essential, hence their availability and season and would increase the cost of movement was affected during the production by 15-20% , and that would lockdown. Closure of aqua laboratories reduce the profits by 40%. Majority and professional services affected of the farmers surveyed were aware health management of animals and of mobile Shrimpapp developed by culture environment. CIBA for technical advice and reported

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Access to quality shrimp seed 47.68 36.71 15.61

Access to shrimp feed 30.58 50.41 19.01

Very Water quality Kits/Minerals etc. 42.74 40.66 16.60 Difficult

Access to diagnostic services 59.58 31.25 9.17 Difficult

Aerators/ spare parts / equipments 51.87 35.68 12.45 No Constraints

Skilled workers like electrician, fishers 46.89 41.08 12.03

Technical guidance 32.64 41.84 25.52

0 20 40 60 80 100

Fig. 5: Constraints faced by the shrimp farmers (%) during COVID-19 lock-down period Manufacturing and supply of feed and shrimp healthcare products

India’s annual shrimp feed the movement of raw materials such requirement is about 12-13 lakh as fish meal, soybean meal and other tonnes, most of it is produced by specialized inputs such as fish oil, krill 8-10 major companies located mostly meal etc., compelling the feed mills in the state of Andhra Pradesh and to curtail their production capacities. Tamil Nadu, and few from Gujarat, Similarly, shrimp healthcare products Haryana and West Bengal. Barring the including nutritional supplements, minor glitches during the first week probiotics and pond management of lockdown, feed mills resumed their inputs are crucial for successful shrimp production to the near normal period farming. Based on the reports on except the issues related to labour marketing trends, lockdown is expected and transportation which hindered to reduce the sale of feed and the timely supply. Since feed mills are healthcare products by 40% and loss totally dependent on the demand from of employment by 30%. Professional farming operations, poor stocking support from the input dealers in activity, both in terms of farming the areas of feed, health and pond area and stocking densities in the management to farmers was also farms led to the scaling down of feed interrupted due to restrictions in their production. Further, lockdown affected movement, under lockdown.

Processing and market dynamics

Majority of farmers (71%) in the poor handling of due to survey were constrained especially lack of skilled labour at farm site had during early days of lockdown due deteriorated the quality of harvest to closure of domestic markets and material, hence, expressed their the absence of cold storage facilities, inability to pay the support price fixed where nearly half of the respondents by the government. Further, processing (57%) could not access the refrigerated units had reservation to procure the vehicles for transporting the harvested harvest material due to shortage of shrimps to the processing facilities (Fig- labour and requested the farmers to 6). The non-compliance of processors supply headless shrimp. The labourers to honour the government orders who left to their native places during for minimum procurement price in the initial lockdown could not return to state such as Andhra Pradesh further the work due to lack of transportation. demoralized the already strained The problem was compounded by farmers. The processors argued that the inadequate quantity of harvested material to run the processing facility, storage facility with local dealers and lack of desired size of shrimp, lack of small buyers (Fig-7). export orders in addition to lack of

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Fig. 6: Challenges encountered in marketing the shrimps during the COVID-19 lock-down

Though the emerging post Covid rupees for kg of shrimp exported to 19 scenario in terms of economic China (~ 251.54) was less than 50% disruption in shrimp farming sector than that of USA (~ 575.35). Hence the is very serious, exporters in the economic benefits to Indian shrimp industry felt that the present setback is farming, in the improved Chinese temporary and they are confident that markets have limited, compared to the sector could bounce back. They that of USA. Though small in number, have recalled that during the April last farmers producing black tiger shrimp week Chinese market has opened up have the reason to smile as Japan has and export consignments have started lifted the inspection orders from India moving, and hopeful that USA and in first week of April 2020 following the EU markets will revive in the coming satisfactory reports on freedom from months, in less than 6 months period. antibiotic residues in the consignments. During 2019 India exported a total of Farming of tiger shrimp and harvest of USD 4.88 billion worth shrimp to USA large size shrimp can be a sustainable ($2.37 b) and the economic recession income model for farmers. All the in the US due to Covid 19 pandemic participated stakeholders were of would be hurting the Indian shrimp the view that over dependence on industry the most. Though Chinese international markets and lack of market is improving, the earnings in domestic market is hurting the sector the most, as no backup strategy is in of the customers and retail business place, which make the Indian shrimp from the importing countries, and the farming vulnerable to international current shrimp farming situation under market dynamics. Ultimately the impact Covid 19 pandemic in other Asian on Indian shrimp farming will be countries. determined by the sustained interest

4.8 4.4 4.2 3.2 3.0 1.4

Inadequate Non Poor quantity availability Lack of Inadequate Man power quality raw to run the of bigger export storage shortage material processing size orders capacity facility shrimps

Fig. 7: Challenges faced by the processors during the COVID-19 lock-down: mean score and rank Loss of employment and other social issues

Shrimp supply chain is heavily and distribution systems. During the dependent on labour and offer current lockdown period, labour from wide range of jobs opportunities the local villages could not attend to such as farm labour, technicians at the work due to movement restrictions hatcheries, farms and processing and in-house workers left to their units, manufacture and marketing native places due to fear of infection, of inputs, whole sale and retail and lack of salary assurance from the businesses, workers to operators of employers. The sealing of state and farm machineries, vehicle operators, district borders and restrictions on day civil and plumbing, mechanical and to day movement of people affecting electrical machineries etc. The shrimp their access to work place caused aquaculture sector provides more loss of employment and income led than one million jobs directly and to social security issues in the entire indirectly in production, processing shrimp farming supply chain. Overall impact and economic loss to the sector with scenarios

The results of the survey production by 40%, seafood export indicated that COVID-19 related performance, to the tune of 30% or disruptions adversely affected the more loss, in the current year (2020- shrimp aquaculture sector in terms of 2021) (Fig-8). reduction of farmed area and shrimp

160 800

Fig. 8: Approximate estimate of 140 reduction in shrimp farming area 700 and production Production in Thousand tonnes 120 600

100 500

80 P 400 R O 60 J 300

Area in thousand hectares E 40 C 200 T E 20 100 D

0 0 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

The lockdown would drive an production in the coming months increase in seed cost by 15-30%, due to the constraints in the supply and timely availability of the seed for of sufficient SPF brood stocks by the the next stocking would also be an international suppliers. Based on the issue (Fig-9). The market price for the estimates available, probable economic produced shrimp in the current season loss to the shrimp aquaculture sector was reduced by more than 30%, and for the current year (2020-2021) is they were skeptical about the future estimated to be around Rs.10,000 market demand, considering the crores. However, the impact may emerging scenario in USA and EU. change as expressed in the scenarios (Table-1), due to further continuation of The loss of employment for lockdown restrictions, non-availability the workers has gone up to 30-40% of quality seed and other inputs, bleak during the season. Shrimp hatcheries marketing prospects in the importing projected an economic loss of 30- countries coupled with lack of domestic 40% and further expect a lower seed markets. <15% 4 5 Reduced Negatively market price impact the of shrimp employment 3 6 Increased Farming the seed and area input cost reduced 15-30% 2 7 Reduce Farmers did the shrimp not take production shrimp 1 8 farming Affect Indian Economic loss seafood export to shrimp performance hatchery >30%

Fig. 9: Overall impact of COVID-19 lock-down on shrimp farming sector

Table 1: An approximate estimate of economic loss to the sector due to COVID 19 lock-down

Scenario 1 Scenario 2 Scenario 3 Assumed @ 25% loss @ 40% loss @ 70% loss Annual that 60% of Components/ capacity/ Unit Loss in Loss Loss in Loss in (A) is done in Loss Loss subsector resource cost value in value value this season in Units in Units (A) (Rs Units (Rs (Rs (B) (billion) (billion) crores) (billion) crores) crores) Seed 70 billion 40 NP/ 42.0 10.8 420 16.8 672 29.4 1176 production PL PL 13 Lakh Rs.80/ (1560*) (2496*) (4368*) Feed 7.8 1.95 3.12 5.46 tonnes Kg 156 250 437 Farming & 8 lakh Rs.350/ 4.8 1.2 4200 1.92 6720 2.6 11760 Production tonnes Kg 6.2 lakh Rs.500/ (4650*) (7440*) (13020*) Market 3.72 0.93 1.49 2.6 tonnes Kg 465 744 1302 Employment including hatchery, 12 lakh Rs.500/ 12.0 360 1800 576 2880 1008 5040 farm, inputs, people day processing etc.

TOTAL 7061 11265 20714

*(For feed and processor the loss is only loss of business, the monetary loss is taken as 10%) Steps taken by government organizations

Initial lockdown restrictions centres at Kakdwip, West Bengal and created lots of confusions and Navsari, Gujarat are continuously in disturbance in the shrimp value chain, touch with brackishwater farmers in the which were subsequently cleared by country, through the CIBAShrimpApp government authorities by issuing and telephonically, coordinating with suitable order, at the request of the the respective local administration to stakeholders. Central government ensure the free movement of shrimp/ issued orders exempting fish seed and feed in the respective and aquaculture sector viz, farming states. The Institute is working with CAA activities including feeding, farm and facilitating the supply of quality maintenance, harvesting, processing, seed and providing technical advisories packaging and uninterrupted to farmers on good aquaculture movement of aquaculture related practices during this lockdown period. products and materials across the states. To ensure the imports of During this crisis regional centres required materials for aquaculture, of ICAR-CIBA are extending technical Finance ministry has issued special advice to shrimp/fish farmers, also orders, extending the Sanitary Import involved in the distribution of feed Permits (SIPs) & other Agriculture manufactured at its pilot feed mills inputs permits expiring between 01- and coordinating with private shrimp 03-2020 to 15-04-2020 by 3 months, hatcheries for timely supply of seeds to delay in arrival of consignments the interested farmers, in their regions condoned by one month, re-booking of operation. As a social support of quarantine cubicles in AQF, Chennai activity, programs were conducted to without additional booking charges create awareness about prevention and verification of documents and of Covid-19 and distributed basic grant of NOC for quarantine relaxed necessities to the needy people of the from 7 days to 3 days. Following the nearby villages. Fishes grown in the farmers representations, Government institute grow-out farms were sold of Andhra Pradesh has fixed minimum twice weekly to nearby villagers of procurement price for the shrimp and Kakadwip and Navsari at reasonable maximum sale price for the shrimp rate to meet their requirement of fish, seed in the state and entrusted the which is well appreciated. department of fisheries to monitor the ground situation. MPEDA has taken ICAR-CIBA suggest the following measures cautioning the exporters measures, to the Central and State to adhere to ethical practices, and Governments and the stakeholders, extends help to farmers in carrying as the ‘Way Forward’ for the shrimp out the shrimp farming activities under farming sector to tide over the impacts the lock down situation. Scientists of of COVID-19 related lockdown and ICAR-CIBA, Chennai and its regional other restrictions. Seed production and farming

1. Permission to operate cargo flight Mud crab in enclosures or in box- to enable shipment of brood stock farming is also an option to increase from overseas suppliers and rapid the income. quarantine at Aquatic Quarantine Facility. Encouraging hatcheries to 7. In order have a sustainable income, have nursery facilities to buffer the a part of the farm can be used for seed supplies. integrated multitrophic aquaculture (IMTA), with native shrimp such as 2. Compliance of strict biosecurity indicus or monodon, herbivorus measures and adoption of better finfishes, small poultry units, management practices by the with vegetable farming on the farmers. bunds. This would provide food for consumption for the farmer 3. Farmers need to adopt a and farm workers and sustainable comprehensive seed selection income, in these unique situations protocols including PCR screening such as Covid 19 Lock Down. for the major pathogens such as WSSV and EHP, to ensure the seed 8. Stress on the availability of exotic quality. vannamei brood stock, necessitates the reintroduction of successful 4. Farmers need to adopt diverse native shrimp species such as farming approaches such as nursery Indian white shrimp (Penaeus rearing to avoid the loss of survival, indicus), to have a complimentary shorter duration crops with high option, along with vannamei. A stocking densities to produce national flagship programme for smaller size shrimps to Chinese the reintroduction of indicus in markets and local markets, plan Indian farming is the need of the longer duration crops with low hour, with a join effort from the stocking densities , as low stocking Central and state governments, densities always reduce the risk government institutions such as considerably, and get an option for MPEDA, NFDB and CIBA, on public partial harvesting. private partnership (PPP) mode. Being the nodal R&D institution 5. Staggered stocking of ponds in for brackishwater aquaculture tune with seed availability and plan sector in the country, CIBA has harvest as per the market demand. already initiated a nationwide 6. Different polyculture models using demonstration of indicus farming, native shrimp species (Indian and the results showed the white and tiger) with compatible economic viability of this native herbivorous finfishes such as species, which is only comparable to Milkfish, Etroplus etc. Farming of the exotic SPF vannamei. Domestic and international marketing

In the absence of assured manner considering the local demand. international market, popularizing the This can be possible by establishing a domestic market by creating chain transparent communication network of cold storage facilities and public between all the shrimp farmers in a awareness about the benefit of shrimp locality and their regular processors/ as healthy food need to be focused. buyers/fish selling outlets. Farmers can harvest in a phased

Support from the Govt. authorities

• In addition to seed and feed other and related ancillary stakeholders of farm machineries and the required aquaculture. spare parts also need to be recognized as essential items and • Provide appropriate social welfare allow their movement in farming measures to sustain the livelihood areas. of the workers and their families, under lockdown situations. • Enabling the movement of workers at hatcheries, farm, feed mills, input • Consider aquaculture in par with manufacturing units, processing and agriculture and extend all the export facilities with appropriate economic relief measures provided delegation of powers to local to agriculture sector to aquaculture. officials. • Joint action group may be created • Regular communication mechanism including different developmental, to provide information on local and promotional, regulatory, scientific international markets and prices to and social departments to provide the stakeholders. the authentic information to enable the stakeholders to informed • Need to have a minimum support decision minimizing the risk in their price in place, and mechanism for aquaculture activities. ensuring compliance by processing units by the government • Providing adequate training of staff on prevention of Covid 19 at various • Moratorium of three-six months on levels of shrimp value chain and EMIs, payment of various bills, taxes providing free access to required etc from farmers, hatchery owners protection materials. Conclusion

The study apparently indicated that the the components of the sector and COVID-19 lockdown and subsequent their livelihoods. The approximate restrictions adversely impacted the estimate indicates that the sector activities in the shrimp aquaculture would incur an economic loss of sector such as farming including new about Rs.10,000 crores. Therefore, stocking, availability and access to SPF the Central and State governments brood stock from abroad, hatchery need to support the sector with a relief seed production and supply to package and implement measures to farmers, distribution of feed and other ease disruptions in the supply chain inputs, decrease in the farming area, and minimize the negative impact on processing and marketing of shrimps. shrimp aquaculture, and to protect this Further, restrictions forced the skilled dynamic food production sector which and farm workers stay at home, and also earns a foreign exchange to the migratory workers to leave to their tune of Rs.35000 crores to the country. homes, which negatively affected all

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