When combined with anti-dumping duties, the effective tariff on Indian shrimp is now as high as 59.72 percent.
Published Sep 14, 2025 | 3:00 PM ⚊ Updated Sep 14, 2025 | 3:00 PM
Representational image. Credit: iStock
Synopsis: Centre has stepped in with GST relief. From 22 September, fisheries across the value chain face only a 5 percent tax. Fish oils, seafood products, aquaculture machinery, aerators, pumps, diesel engines, and fishing nets are all cheaper now. For Andhra, the relief could ease some pressure. Lower costs may soften the tariff blow, at least for now. Farmers, however, insist that GST cuts alone will not solve the crisis.
Andhra Pradesh’s booming aquaculture sector, the backbone of India’s seafood exports, is navigating through choppy waters. A steep tariff hike by the United States under President Donald Trump has cast a long shadow over the state’s shrimp-driven economy.
The 25 percent tariff, announced earlier this year, has upended the export pipeline. Prices for shrimp have plunged. Farmers are struggling. Processing units are shutting doors. Exporters are scrambling to find new markets.
Andhra Pradesh Chief Minister Chandrababu Naidu on Thursday, 11 September, has raised an alarm in Delhi. In a letter, he has asked for a rescue package for the aquaculture industry.
His demands included a 30 percent hike in working capital limits, a 240-day moratorium on loan interest, higher limits on standby letters of credit, and a 5 percent interest concession on loans. He also urged the Centre to lift GST on seafood, at least temporarily, to reduce the cost burden.
Naidu warned that the sector could lose Rs 25,000 crore in business and that about 2.5 lakh farmers’ families will be at risk. He also pressed the Centre to help Andhra farmers tap new markets in Europe, South Korea, Saudi Arabia, and Russia. Incentives for value-added products and inclusion of shrimp in food supplies for defence personnel were also on his list.
At a recent meeting with fish exporters and farmers, IT and HRD Minister Nara Lokesh promised support to the sector and asked them to find opportunity in the crisis.
He said: “The US has imposed 25% tariff on aqua exports, with an additional 25% increase looming. We are collaborating with the Centre and the industry to resolve the issue. There is a need to explore markets in other countries like Russia and EU. Also the production cost should be brought down.”
The urgency is clear. According to official sources, Andhra Pradesh is India’s aquaculture powerhouse.
In 2024-25, India exported 16.98 lakh metric tonnes of seafood worth $7.45 billion. Frozen shrimp was the crown jewel. Andhra alone contributes 60 percent of that volume, shipping around 4-5 lakh MT every year. In monetary terms, that’s $3-4 billion—over two-thirds of the country’s shrimp export value.
West Bengal is a major producer too, but Andhra dominates exports. Its advanced farms and processing units give it an edge. The sector has grown at a compound annual growth rate of 9.5 percent in recent years. The US is India’s biggest seafood market, but tariffs are choking the flow.
When combined with anti-dumping duties, the effective tariff on Indian shrimp is now as high as 59.72 percent. Demand has shrunk. Exporters have slashed procurement prices by 10-20 percent. Farmers are angry. Many are on the brink of collapse.
In coastal Andhra, the crisis is visible. Vast shrimp farms are cutting back on production. Dozens of processing units have shut. Each unit employs about 400 workers. With closures, hundreds of families are left without income.
“Families are struggling. Laborers are out of jobs. Farmers don’t know if they can survive another season,” said an N Krishna, an aquaculture farmer in West Godavari district.
For some, the only option is to switch crops or even move to poultry. High input costs and environmental risks make shrimp farming harder to sustain without export stability.
Industry experts are urging a course correction. They want India to diversify exports toward Europe and Asia, build stronger value-added product lines, and push for tariff negotiations with the US. But these are long-term goals. The immediate fallout is brutal. Shrinking revenues, rising debt, and falling confidence.
Centre has stepped in with GST relief. From 22 September, fisheries across the value chain face only a 5 percent tax. Earlier, rates were as high as 12 percent. Fish oils, seafood products, aquaculture machinery, aerators, pumps, diesel engines, and fishing nets are all cheaper now.
The reform is part of India’s effort to drive ‘blue revolution’. Lower taxes are expected to reduce input costs, boost value addition, and make the sector more competitive. Officials say it will improve margins for hatcheries, farms, and processing units, and help exporters look beyond the US.
For Andhra, the relief could ease some pressure. Lower costs may soften the tariff blow, at least for now.
Farmers, however, insist that GST cuts alone will not solve the crisis. “It’s farmer-friendly, but tariffs are an external shock,” said Krsihna. “Diversification and subsidies are essential for survival,” he says.
For now, Andhra Pradesh’s shrimp industry remains at sea. The state is battling to hold on to its $3-4 billion export engine, even as Trump’s tariffs threaten to sink the sector’s hard-won growth.
(Edited by Amit Vasudev)
