LAHORE: The Punjab Fisheries Department recently floated tenders for a large-scale shrimp farming project, aiming to boost aquaculture in the province, could lead to massive financial inefficiencies.
While this initiative holds potential, a detailed review uncovers significant flaws in both planning and implementation that could result in substantial financial loss. A prominent concern is the acquisition of shrimp seeds (postlarvae-PL), as the project necessitates around 36 million PL for each culture cycle, with an equal requirement anticipated for subsequent cycles.
During execution of the pilot project, the government has been procuring PL at rates between Rs4.5 and Rs5 per unit, which starkly contrasts with the international market price of Re0.5-0.7 per unit.
Should the government continue on this path, it could incur annual costs of approximately Rs360 million solely for the PL procurement, a burden that not only strains financial resources but also raises questions about the project’s long-term viability. A single bidder may appear successful due to tender’s terms and conditions in the upcoming opening of bids.
Instead of spending millions of rupees on costly purchase of shrimp seeds, a more prudent and strategic solution would involve the establishment of a shrimp hatchery through a public-private partnership (PPP). By investing Rs250 million in a high-quality hatchery as a one-time expense, the government could secure a consistent supply of PL for the future at a significantly reduced cost. This initiative would not only bolster the local shrimp farming sector in Punjab for at least a decade but also diminish reliance on imports or local costly options, thereby promoting groundbreaking domestic production.
Such a strategy would conserve public funds, generate job opportunities, attract private investment and ultimately pave the way for a self-sustaining shrimp farming industry in the country. Conversely, if the current flawed procurement strategy persists, the shrimp farming project in Punjab risks becoming example of inadequate planning resulting in otherwise avoidable financial setbacks. The critical question remains: Will the government opt for a cost-effective, sustainable and long-term strategy?
The Punjab government’s chief spokesperson insisted that the plan is to invest in complete value chain including major investment on hatcheries. When her attention is diverted that it is a matter of concern that Punjab is purchasing 10-times costlier shrimp PL (seeds) and project’s feasibility will be adversely affected by such excessive financial pressure, she negated the notion saying it is not a matter of concern rather it is like importing EV vehicles till they are manufactured and assembled in the country. And our own hatcheries will be ready by December.
She added that the feasibility is based on 100-acre pilot project. It has five projects that will be running parallel. Market insiders believed that hatchery is a good option. However, it should be prioritised for sourcing cheap shrimp seeds as it’s construction may be completed in a few months.
It is worth mentioning here that sourcing of shrimp postlarvae assumes immense importance for farming. Stocking only the best quality and cost-effective PL is critical to the success of a shrimp farm. Knowing the starting point is key in this connection. Given the issues relating to local production-line and emerging challenges with imports, only viable option is to produce quality PL through hatchery as part of a well-established value chain.
