Andhra Pradesh has estimated that the state is losing approximately Rs 25,000 crore because of US tariffs on its shrimp exports, According to Andhra Pradesh Chief Minister N Chandrababu Naidu, up to 50 per cent of export orders have been cancelled due to the tariffs.
According to brokerage reports, seafood exports are among the worst-hit sectors in India, facing an effective tariff of 58.56 per cent, a 50 per cent reciprocal tariff, and an 8.56 per cent MFN tariff. India is currently the third-largest supplier of seafood to the US.
Andhra Pradesh CM N Chandrababu Naidu has expressed the concern, according to PTI. “The taxes imposed by America majorly hit shrimp exports. It is estimated that a loss of Rs 25,000 crore would have occurred. Up to 50 per cent export orders have been cancelled,” said Naidu in his letters to the Central Ministers, according to an official press release on Sunday night.
Andhra Pradesh’s dominant role in shrimp exports
The Chief Minister noted that Andhra Pradesh accounts for 80 per cent of India’s shrimp exports and 34 per cent of marine exports, valued at around Rs 21,246 crore annually. The sector directly supports 2.5 lakh families, with another 30 lakh people involved in allied industries, Naidu said.
Naidu also pointed out that seafood consumption in India is far below than global levels, with per capita consumption at just 12-13 kg annually compared to the global average of 20-30 kg. To ease the crisis, the Andhra Pradesh government has persuaded aquaculture feed manufacturers to reduce prices by Rs 9 per kg and is considering supplying subsidised power transformers.
Andhra CM flags export losses
Naidu has requested the Centre to support the sector through measures such as boosting domestic consumption of aquaculture products, providing financial flexibility under GST, and offering targeted financial assistance. He also proposed an Rs 100 crore corpus fund, the creation of cold storages, and hygienic fish and seafood markets.
He also urged the Centre to run dedicated trains to move aquaculture products from South India to other parts of the country and proposed a one-time top-up loan of Rs 1 lakh under Kisan Credit Cards for the fishing community.
CM writes to Union ministers seeking sector support
Naidu further called for strengthening processing, packaging, and cold-chain facilities to enhance competitiveness in new markets. He also requested the establishment of regional offices of key research institutions such as ICAR-CIBA and ICAR-NBFGR in Andhra Pradesh.
Naidu has sent separate letters to Union Finance Minister Nirmala Sitharaman, Commerce Minister Piyush Goyal and Fisheries Minister Rajiv Ranjan Singh.