The aquaculture sector in Andhra Pradesh, a significant contributor to India’s seafood exports, faces an acute crisis following the imposition of steep import tariffs by the United States, effective from April 5, 2025. The measure has severely impacted shrimp farmers and exporters, leading to a near halt in export operations and prompting distress sales in domestic markets.The situation developed after reports confirmed a substantial tariff increase on Indian seafood entering the US. Andhra Pradesh chief minister N. Chandrababu Naidu, in correspondence with Union Minister of Commerce and Industry Piyush Goyal, detailed the levy as a 27% import tariff specifically on Indian shrimp. This new duty compounds the existing 5.77% countervailing duty (CVD), creating a significant cost disadvantage for Indian products. Naidu highlighted that competitors like Ecuador face lower tariffs (around 10%), resulting in an approximate 20% duty disparity that undermines the competitiveness of Indian shrimp in its primary export destination.The immediate consequence was a drastic reduction in shrimp exports from Andhra Pradesh, a state that official sources indicate contributed about 32% of India’s total seafood export value in the 2023-24 fiscal year. Exporters raised concerns about consignments stranded at various US ports, including New York and Los Angeles, and shipments already en route. Some respite was offered through clarifications suggesting that goods billed and shipped prior to the April 5 deadline would be subject to the previous, lower tariff rates; however, shipments processed after this date face the increased levy.‘Price drops’Faced with the inability to export and mounting uncertainty, shrimp farmers across Andhra Pradesh began redirecting their harvested produce to domestic consumers. Large quantities of shrimp appeared in local markets in Vijayawada, Eluru, Bhimavaram, Machilipatnam, and other coastal towns, often sold directly by farmers or through middlemen at substantially reduced prices. Market reports indicated significant price drops, with shrimp counts typically destined for export fetching only Rs 180-Rs 250 per kg, depending on size, a fraction of their usual export value. This situation has placed immense financial pressure on farmers dealing with perishable stock and collapsing prices.“Just last month, we were hopeful. Now, the price we are getting locally barely covers the cost of feed, let alone labour or the loan instalments. We harvested thinking of export rates, but buyers are hesitant, and we’re forced to sell at whatever price is offered before the stock spoils. Many small farmers like me are staring at huge losses; it feels like the ground has been pulled from under our feet,” Rajesh, a small aqua farmer (Konam Exports) from Visakhapatnam, told The Wire. The tariff hike also impacts India’s role in the international seafood processing chain. Naidu noted that countries such as Vietnam, Thailand, and Japan, which previously imported Indian seafood for value addition and re-export to the US, were reportedly cancelling orders due to the increased cost of the final product entering the American market. He also drew attention to pre-existing difficulties in the European Union market, where Indian exporters contend with high inspection frequencies, import duties, and competition from nations with zero-duty access via Free Trade Agreements.Meetings soughtThe Andhra Pradesh chapter of the Seafood Exporters’ Association of India (SEAI) indicated its intention to seek meetings with the prime minister and the Union ministers for commerce and finance to convey the severity of the crisis affecting farmers, exporters, and other stakeholders.The dependence on US market is substantial. During the 2023-24 fiscal year, shrimp exports accounted for 92% of the US $2.55 billion worth of marine products India shipped to the US. Data from the Marine Products Export Development Authority (MPEDA) confirmed the US as the top importer of Indian seafood overall in 2023-24, representing 34.53% of the total export value.“The short-term impact will undoubtedly be severe, causing significant disruption not only for Indian exporters but likely also for competitors in China, Vietnam, and Ecuador for at least the next six months. Ultimately, however, we anticipate that these additional costs will eventually be absorbed by the end consumer in the medium term,” a senior employee at Devi Fisheries Limited, a major Visakhapatnam-based shrimp exporter, who spoke on condition of anonymity, told The Wire. “To put it in perspective, consider a container of shrimp typically valued between Rs 1.5 crore and Rs 2 crore, depending on quality. The new 27% tariff dramatically increases this base cost, pushing the total landed value effectively to approximately 135% of the original, including CVD and other costs. These represent substantial cost escalations impacting the viability of trade at current levels,” the employee explained. Figures released by the Union commerce ministry further underscore Andhra Pradesh’s leading role. Provisional data for 2023-24 indicated that the state exported 4,27,237 tonnes of marine products, the highest volume nationally. India’s total seafood exports for that year reached approximately 18.19 lakh tonnes, valued at Rs 61,043 crore.
