Power cuts may cause 30–40% loss to aqua industry
Any default means a huge loss not only to companies but also the country by way of foreign exchange lost
Kakinada: Aqua industry within Andhra Pradesh, the largest exporter of shrimp and seafood products in India, is facing a crisis due to power cuts within the state. Industry representatives fear if the trend of ongoing power cuts continues, they will lose 30–40 percent of their production.
“Food processing industries need continuous power supply. Any disruption disrupts production and damages products. As an alternative, industrial units depend on generators to ensure production without interruption. But diesel prices are touching ₹ 110 per litre. Moreover, it is impossible to run generators when power goes off for hours together, because production cost will rise by more than 50 percent, making the products economically unviable,” Ananda Group chairman U. Viswanatha Raju told Deccan Chronicle.
He pointed out that shrimp processing companies in the state have signed export contracts. If such power disruptions continue, they will be unable to meet their export commitments. Any default means a huge loss not only to companies but also the country by way of foreign exchange lost.
According to trade sources, Andhra Pradesh exports ₹ 55,000 crore worth of products, with Godavari and erstwhile Krishna districts accounting for ₹ 20,000 crore. Nearly three lakh people are employed by shrimp processing units in these districts.
Viswanatha Raju said if power cuts continue, half the employees will lose their jobs. Continuous power supply should be maintained even though power holiday of one day a week could be implemented in extreme circumstances. If the government is unable to supply power continuously, it should reduce taxes and VAT. It must also supply diesel at subsidised prices, like it does to fisherfolk who venture into the sea. Otherwise, the aqua sector will incur huge losses, Raju maintained.