Shrimp squeeze: Inside India’s struggle to keep its seafood industry afloat amid Trump’s tariffs - The Economic Times
India’s seafood export industry is reeling after the U.S. imposed a steep 50 % tariff on Indian goods, with anti-dumping and countervailing duties pushing effective duties on shrimp shipments to nearly 60 %. The U.S. is the largest single market for Indian seafood, accounting for about one-third of exports. With such high costs, many exporters are halting or reducing shipments, and several processing units — especially in Andhra Pradesh — have shut down. The industry expects a 20 % drop in exports in 2025–26. To survive, seafood exporters must shift to new markets such as the EU, Russia, UAE, China, and Southeast Asia, but each region carries distinct compliance, quarantine and demand challenges. Meanwhile, exporters face working capital stress, rising interest costs, and inventory burdens. The government is pushing for market diversification, seeking trade agreements, easing finance, and promoting sustainability standards, but adapting will take months or even a full year.
The Key points
- U.S. tariffs push duty on Indian shrimp exports from ~10 % to ~59.7 %.
- The U.S. takes ~33 % of India’s seafood exports.
- Many exports are suspended; September 2025 shipments dropped 30–35 %.
- Processing units, especially in Andhra Pradesh, are shutting operations.
- Expected export contraction in 2025–26 is ~20 %.
- Exporters are eyeing markets like EU, Russia, UAE, China, Southeast Asia.
- Diverse regional standards and quarantine rules complicate entry.
- Working capital constraints, inventory holding, high interest burden rising.
- Banks are re-evaluating exposure to seafood exporters.
- Government is pushing for trade deals, finance support, and sustainability certification.
Disclaimer: This preview includes title, image, and description automatically sourced from the original website (economictimes.indiatimes.com) using publicly available metadata / OG tags. All rights, including copyright and content ownership, remain with the original publisher. If you are the content owner and wish to request removal, please contact us from your official email to no_reply@newspaperhunt.com.
