Vijayawada: The Andhra Pradesh High Court on Tuesday restrained prawn feed manufacturers and affiliated companies from implementing a recent increase in feed prices and ordered them to sell feed at the rates prescribed in a June 12 circular until further orders.
Petition challenges unilateral hike
The petition was filed by two shrimp farmers, Malla Tulasirao and Vera Valli Chandrasekhar of West Godavari district, who challenged the manufacturers' decision to raise rates. The petitioners contended that the increase—reported as ₹9,000 per tonne for Vannamei feed and ₹12,000 per tonne for Tiger prawn feed—was imposed without following the statutory process under the Andhra Pradesh State Aquaculture Development Authority (APSADA) Act, 2020.
The petitioners, through their counsel K L N Swamy, argued that APSADA alone is empowered under the Act to regulate and determine prices of aqua feed, seeds and other farm inputs, and that feed manufacturers could not unilaterally revise prices without the authority's prescribed procedures.
"Under the APSADA Act, 2020, the authority alone is empowered to regulate and determine prices of aqua feed, seed and other farm inputs," the counsel said, according to the petition record.
Interim order and next steps
Taking note of the submissions, Justice N Harinath passed interim orders restraining the Prawn Feed Manufacturers Association and affiliated companies from implementing the revised rates. The court directed all parties to continue selling prawn feed at the rates specified in the June 12 circular until the next date of hearing. The matter has been posted for further hearing on September 30.
What the order means for farmers and industry
The interim stay preserves the status quo on pricing for the immediate term, shielding shrimp farmers from the sudden spike in input costs while the court examines the legal scope of APSADA's price-regulation powers. For manufacturers and suppliers, the order prevents them from collecting the higher rates until the court decides whether the price revision complied with the statutory procedure.
- Affected products: Vannamei and Tiger prawn feeds (price increases contested: ₹9,000 and ₹12,000 per tonne respectively).
- Governing law: Andhra Pradesh State Aquaculture Development Authority (APSADA) Act, 2020—alleged exclusive power to regulate prices of aqua inputs.
- Court direction: Continue to sell at June 12 circular rates until further orders; next hearing on Sept 30.
Background: price controls and sector sensitivity
Aquaculture is a labour- and input-intensive activity in Andhra Pradesh, with feed costs forming a large portion of variable expenses for shrimp farmers. Sudden increases in feed prices can sharply affect margins, farm viability and the state’s export competitiveness. The petition frames the dispute as not merely commercial but regulatory, asking the court to clarify the procedure and authority for fixing prices under the APSADA Act.
| Item | Reported change | Court direction |
|---|---|---|
| Vannamei feed | Increase of ₹9,000/tonne | Sell at June 12 circular rate (stay on increase) |
| Tiger prawn feed | Increase of ₹12,000/tonne | Sell at June 12 circular rate (stay on increase) |
Possible implications for regulation and supply chains
If the court ultimately upholds the petitioners' interpretation of APSADA's exclusive pricing power, manufacturers may be required to route future price proposals through the authority's prescribed process. That could introduce greater regulatory oversight on feed pricing but may also lengthen the time taken to revise prices in response to input-cost fluctuations.
Conversely, if manufacturers are found to have the discretion to set prices within the competitive market framework, the decision could validate unilateral price adjustments, with knock-on effects for farmers' cost structures.
Both sides will return to the High Court on September 30 for further arguments. Until then, the industry must observe the court-mandated price levels set out in the June 12 circular.
