India’s seafood export market is in shambles today after the U.S. latest move to slam a whopping 27% import tariff on imported shrimp is rippling through markets, with a heavy impact to be felt mostly in Andhra Pradesh. It follows U.S. President Donald Trump, under his second tenure, having slapped a series of sweeping tariffs aimed at imports across various nations, including India.
The erstwhile flourishing aquaculture industry in Andhra Pradesh is presently staring at an uncertain future. Famous for its massive exports of shrimp, crab, and other seafood to the U.S. market, the state witnessed a rapid decline in demand after the tariff increase. The rise in the price of Indian shrimp has prompted several foreign buyers to either cancel or postpone their orders, setting off a ripple effect in the local economy.
Pointing out the gravity of the situation, Telugu Desam Party (TDP) leader and former Chief Minister N. Chandrababu Naidu has made a representation to Union Commerce Minister Piyush Goyal, seeking urgent action by the central government. Writing in his letter, Naidu emphasized that lakhs of families in Andhra Pradesh depend on aquaculture for their livelihood and the new U.S. import duty may send the industry into a crisis situation.
Naidu laid out the economic ramifications of the 27% duty—about ₹27 per every ₹100 value of export—with the explanation that such duties are high and will render Indian seafood uncompetitive internationally. Naidu cautioned that if immediate diplomatic steps are not implemented, the sector will experience irrevocable losses with possibly huge layoffs of workers.
In addition, Naidu noted that Andhra Pradesh does not have proper cold storage and preservation facilities for seafood items. With the export shipments reducing pace, the failure to hold unsold stock could aggravate losses for aquaculture farmers and exporters. He urged the Centre not only to negotiate tariff relaxations with the U.S. but also to provide assistance in creating critical infrastructure in the state.
