The government on Monday urged the seafood exporters, hit by a cumulative 59% tariff in the US, to ‘bravely face’ the challenges and explore alternative markets for shipments besides expanding domestic supplies.
After meeting with seafood exporters and stakeholders, fisheries minister Rajiv Ranjan Singh Lalan said that several markets including the European Union (EU), Japan, South Korea, Russia and other markets present opportunities for seafood exporters.
“We will have to face current challenges and the recently signed India’s Free Trade Agreement (FTA) with the UK also has provisions for the fisheries sector.,” Singh said on the US imposing tariffs on India’s agri-products.
Singh also urged exporters to take advantage of the Fishery Infrastructure Development Fund to upgrade and strengthen value-addition, processing and packaging facilities.
The Crippling Impact of US Tariffs on India’s Seafood Sector
India’s seafood exports, mostly frozen shrimp, were $ 7.38 billion in FY25, with the United States having a share of 35% ($ 2.8 billion ).
The bulk of the country’s seafood exports to the US is ‘Vannamei Shrimp’. Ecuador had a 19% in the USA’s annual seafood import of $ 6 billion.
Rama Shankar Naik, Commissioner of fisheries, Andhra Pradesh, the biggest exporter of shrimp in the country, said the seafood exports have been ‘hit hard’ as effective duties imposed by US has been increased to 59.71% which including countervailing (5.76%) and anti-dumping duties (3.96%) along with 50% tariff announced for India by President Donald Trump.
Government’s Strategy: Diversification and Infrastructure Upgrades
“Earlier India had a share of around 35% in total imports of seafood by EU, however because of reports of rejections and concerns regarding residue levels in Indian consignment has led to a decline in our share to around 11% currently,” Naik told FE. He said that the state government is considering measures to increase domestic production of seafood.
Andhra Pradesh accounts for 60% of India’s shrimp export. Seafood exports are dominated by frozen shrimp, which accounts for a significant share. Other major exports include frozen fish, cuttlefish, squids, dried seafood, and live and chilled items
According to KN Raghavan, secretary general, seafood export association (SEAI) said the tariff has put Indian seafood at a major disadvantage compared to competitors like Ecuador (15%), Vietnam (20%), and Thailand (19%) tariff. The association has also urged the centre to provide financial support to exporting units to tide over the crisis.
The seafood exporters had earlier urged the government to abolish 30% import duties on seafood from India, with the exception of fish varieties such as basa from Vietnam and Sardine from Gulf countries, to protect domestic fishing communities.
The bilateral agri-trade between India and the US was around $6.6 billion in 2024, while India exported $ 5 billion worth of agri-goods against an import of only $ 1.5 billion.