Aqua farmers , exporters in quandary over levying of 25% tariffy by US
Aqua farmers and seafood exporters in India face uncertainty after the U.S. imposed a 25% tariff on key exports like shrimp. Discover how this impacts trade, farming livelihoods, and government responses.
Aqua farmers , exporters in quandary over levying of 25% tariffy by US
The enforcement of a 25% tariff by the Trump Administration on Indian seafood exports with effect from August 1 has led to steep fall in the prices of Vannamei (white-leg shrimp) cultured by the aqua farmers.
Andhra Pradesh is considered as the aqua capital of India being the largest exporter of aquaculture products mainly white-leg shrimp. The fallout of the exorbitant anti-dumping duty after pegging it at 10% for 90 days by the United States is felt more across the coastal districts of the State. The farmers and exporters have pressed panic buttons again with uncertainty dogging their future. President Trump has already threatened to increase the duty further as India is the largest importer of crude oil from Russia. Seafood Exporters' Association of India (SEAI) Andhra Pradesh president K. Anand Kumar told Bizz Buzz that they will soon approach the State and Central Governments to seek their intervention to bail them out.
India's seafood exports stood at $7.38 billion with frozen shrimp accounting for a lion's share during FY 2024-25. Frozen shrimp itself had a share of 66% worth $4.88. India's main export market is in the United States, China and the United Kingdom. Marine Products Export Development Authority (MOEDA) is eyeing increasing the exports turnover to $18 by 2030 by encouraging value-added products.
Nearly two lakh farmers eak out a living from aquaculture farming across Godavari, Krishna and Guntur districts with export consignments valued at Rs.6,000 crore. Due to export obligations, it is a must for the exporters to continue their commitments. Industry sources say at present, 1500 containers carrying frozen shrimp (each weighing 18 tonnes) from Andhra Pradesh are at various stages of delivery. Due to the imposition of the 25% tariff, the exporters will suffer heavy losses.
Due to the new tariff, price advantage will be lost by Indian exporters over Ecuador, Thailand, Vietnam and few other countries. Owing to sudden fall in demand, the farmers are also being forced to slash the prices due to poor intake. "We hope the Government of India will soon intervene to resolve the crisis," Arjili Dasu, a fisherfolk activist, said.
