Possible Interventions and Strategies towards Positively Surprising Shrimp Aquaculture & Export Industry

Average Farm Gate Shrimp Prices (Rs) for Exports YEAR PRICES (RS) 2008 455 2009 553 2010 604 2011 649 2012 712 2013 754 2014 954 2015 674

Average Production Cost per kg of Shrimp (Rs) YEAR PRODUCTION COST (RS) 2008 410 2009 423 2010 454 2011 472 2012 550 2013 576 2014 607 2015 664

Average Shrimp Feed Prices (Rs) YEAR PRICES (RS) 2008 180 2009 200 2010 210 2011 215 2012 220 2013 225 2014 230 2015 242

Average USD VS Sri lankan Rupees YEAR 1 USD = SLR(RS) 2008 108 2009 115 2010 112 2011 2012 130 2013 2014 131 2015 140

Shrimp Production YEAR QUANTITY (MT) 2008 2230 2009 3550 2010 3480 2011 4150 2012 3310 2013 4430 2014 5054 2015 6000

Shrimp Exports YEAR QUANTITY (MT) 2008 834 2009 1432 2010 1262 2011 1380 2012 1056 2013 1625 2014 1770 2015 1500

FAO

Global Seafood Consumption

Shrimp Aquaculture Production by World 1991 - 2013 2012 -2013 Projected annual growth 10.3% 2005 -2009 Annual growth rate 7.0%

NORTH WESTERN PROVINCE- Farming Information AREA NO OF FARMS NO OF PONDS PL REQD/CORP ( Millions ) PRODN/CROP ( MT ) ZONE 1 72 340 25.0 340.0 ZONE 2 299 1272 95.0 1480.0 ZONE 3 136 633 50.0 680.0 ZONE 4 25 205 20.0 320.0 ZONE 5 98 550 60.0 840.0 TOTAL 630 3000 250.0 3660.0

BATTICALOA DISTRICT- Farming Information AREA NO OF FARMS NO OF PONDS PL REQD/CORP ( Millions ) PRODN/CROP ( MT ) Watawan 29 47 4.0 85.0 Oddamawadi 18 70 6.0 95.0 Karayakkantivu 11 45 75.0 Kokkadicholai 02 22 3.0 45.0 Ichchantivu 05 1.5 20.0 TOTAL 65 202 18.5 320.0

PRODUCTION CAPACITY PER ANUM (MT) P. Monodon ( Black Tiger Shrimp) NWP 7320 EP 500 (Current) EP 8000 (Potential) NP 7000 (Potential)

NWP PRODUCTION HOW IT IS ACHIEVED? NAQDA together with SLADA implemented the following in the Shrimp Aquaculture Industry since 2004 Regularizing Shrimp farms and Hatcheries and issuing Licenses to Operate in proper manner including Grading of Shrimp Hatcheries. ZONING the Shrimp Farming Areas and implementing CROP CALENDAR System. Implementation of BMP’s in all the segments of the Industry and Introduced Post Larvae TRANSPORT BILL System. Implementation of Proper Biosecurity Systems and Hi Tech PCR Laboratory System for Screening the disease causing Organisms. Trying to arrange funds to improve the infrastructure facilities like Electricity Supply, common supply and sedimentation canals for certain clusters of shrimp farms.

POSSIBLE INTERVENTIONS by SLEDB Finding New Markets for Shrimp Exports such as USA, China, Russia, Vietnam, Korea and Singapore Improving Current Processing Plants for Value addition and New Product Creation. Branding – “ SRI LANKAN SHRIMPS” A Slot to be provided in the e Marketing Place in EDB Website for Shrimp Aquaculture & Export Industry. Supporting the Industry in obtaining Certifications such as BAP, BRC, CIQ etc. to get new markets. Grants, Export Incentive Scheme, Trade Fairs, Exhibitions, Training and Education Supporting to Exploit the full potential of Budget 2016 for the Industry.

BUDGET 2016 151. I also propose to set up an Aquaculture Park in Batticaloa District by providing an enabling environment for the potential private sector investors to develop coastal aquaculture without causing environmental degradation. Aquaculture Park provides an 'investment ready' platform for organizations that want to set up commercial aquaculture operations. This Aquaculture Park will be developed and managed as a PPP. I propose to allocate Rs 100 million for the initial activities.

BUDGET 2016 152. The Shrimp industry has been faced with difficulties in the immediate past which has remained unattended. However, given the potential in the shrimp industry I propose to provide capital and working capital requirements of the shrimp farmers, hatchery operators and processors through the proposed ADB supported SME credit line. I also propose to provide guarantees through the SME credit guarantee fund to those who are engaged in shrimp farming.

BUDGET 2016 153. The suspension of fish export to EU market has adversely affected our local fishermen. As s sensitive government we are aware of the difficulties faced by some of our fishermen. As such, the government is engaged in a continuous dialogue to get this ban lifted which would once again provide the access to EU market. Government has already taken action to install transponders to fishing vessels to comply with international requirements.

BUDGET 2016 182. Primary industries are susceptible to price volatilities that may occur due to various issues. We will form a Primary Industry Council consisting of industry experts who will create strategies to meet the challenges faced by primary industries. 183. As stated in Honourable Prime Minister’s policy statement, we will be creating specialized agricultural and fishery export zones in the country. The Ministry of Primary Industries will be allocated Rs. 2,000 million for the establishment of the proposed agricultural and fishery export zones.