Andhra Pradesh leads India in shrimp production, contributing 70 percent of the national output. The districts of Krishna, West Godavari, and East Godavari account for 75 percent of the state’s production. The state has 95 processing plants, making it the hub of India’s shrimp exports.
Published Apr 07, 2025 | 2:20 PM ⚊ Updated Apr 07, 2025 | 2:21 PM
Shrimps. (iStock)
Synopsis: India’s shrimp exports face a crisis due to US President Trump’s 27 percent tariffs, threatening Andhra Pradesh’s aqua industry. Chief Minister Naidu urged Union Minister Piyush Goyal to negotiate tariff exemptions. With 92 percent of India’s seafood exports being shrimp, farmers and exporters face financial strain. The state contributes significantly to India’s fish and shrimp production, with a large workforce dependent on aquaculture.
USA President Donald Trump’s reciprocal tariffs of 27 percent sound the death knell for shrimp exports from Andhra Pradesh.
As the losses the aqua industry is set to face could be colossal, Chief Minister N Chandrababu Naidu has sounded an SOS to Union Minister for Commerce and Industry Piyush Goyal, urging him to ensure that the Union government would negotiate with the USA to include shrimp in the duty exemption list.
The chief minister emphasised that supporting the aqua industry would strengthen both the state and national economies. He also stressed the critical role of fisheries in Andhra Pradesh’s Gross State Domestic Product (GSDP).
Naidu noted that India exported $2.55 billion worth of seafood in 2023–24, with shrimp accounting for 92 percent. However, exporters from countries like Ecuador face only a 10 percent US duty, putting India at a disadvantage. Indian exporters already bear a 5.77 percent countervailing duty (CVD). Combined with the new tariffs, the duty disparity between India and Ecuador is roughly 20 percent. The new US tariffs, effective 5 April, now apply to all shipments headed to the US.
In the EU (European Union), Indian exporters face non-tariff barriers, including 50 percent inspection rates and 4–7 percent import duties. Meanwhile, Vietnam enjoys zero-duty access under an FTA, dominating the European market.
Countries like Vietnam, Thailand, and Japan often source seafood from India, process it, and re-export it to the US. However, due to the new tariffs, even these nations are canceling orders from India.
In Andhra Pradesh, cold storages are at capacity, and farmers are unsure where to store their harvest. With more crops ready, exporters have halted procurement due to the 27 percent duty. The entire supply chain—farmers, hatcheries, feed mills, processors, and exporters—is reeling.
“Products harvested under previous orders are packed and stored in cold storages and ports but are now subject to higher duties,” the chief minister said.
Naidu stressed that timely intervention could protect the livelihoods of lakhs dependent on the aqua sector.
According to Andhra Pradesh’s Socio-Economic Survey 2024–25, the state contributes 30 percent of India’s fish production and 31 percent of shrimp exports. In 2024–25, fish production reached 41.38 LMT (73.1 percent of the 56.62 LMT target).
Key initiatives by the government include a 61-day marine fishing ban, diesel subsidies, ex-gratia payments for fishermen’s families, and new fishing harbors. The state also offers power tariff concessions for aquafarms and promotes sustainable aquaculture.
Andhra Pradesh leads India in shrimp production, contributing 70 percent of the national output. The districts of Krishna, West Godavari, and East Godavari account for 75 percent of the state’s production. The state has 95 processing plants, making it the hub of India’s shrimp exports.
Meanwhile, YSRCP West Godavari district president and former MLA Mudunuri Prasada Raju slammed NDA-affiliated shrimp exporters for exploiting farmers.
Speaking to the media in Bhimavaram on Sunday, 6 April, Raju accused alliance leaders of forming a “syndicate” and profiting at farmers’ expense. He claimed that aqua prices were slashed under the guise of tariff adjustments and criticized the government for siding with exporters instead of farmers.
“Andhra Pradesh leads the nation in aqua production,” he said. Of India’s 1.84 million tonnes of fish production, 51 percent (0.94 million tonnes) comes from Andhra Pradesh— 76 percent shrimp and 24 percent fish.
He further added, “Aquaculture contributes 10 percent of India’s agricultural income, yet the government remains indifferent to farmers’ struggles. Despite plummeting prices, no supportive measures have been offered. Over 1.5 lakh farmers rely on aquaculture, but their welfare is ignored.”
Farmers face crises in feed, seed, and fair pricing. With US market disruptions, buyers have vanished over the past 10 days. Whether it’s input costs, production, or price fluctuations, the burden ultimately falls on farmers—a problem the government seems unwilling to address.
(Edited by Sumavarsha)
