India's shrimp industry is facing a 26% tariff under Trump's plan, which threatens a thriving USD 7-billion seafood export market that relies heavily on U.S. supermarket chains such as Walmart and Kroger.
“India’s seafood exports hit a record high in FY24, reaching 1,782,602 metric tons valued at $7.38 billion. Frozen shrimp remained the top export item, accounting for $4.88 billion. The U.S. was the leading market, importing 297,571 metric tons,” said IPR Mohan Raju, president of the Prawn Farmers Federation of India, to local media.
Farmers urge tariff relief on key inputs
In response to the potential U.S. tariffs, Indian shrimp farmers are urging the government to eliminate import duties on essential aquaculture inputs such as shrimp broodstock and hatchery feeds.
The Prawn Farmers Federation of India noted that nearly all the broodstock used in Indian shrimp farming is imported from the U.S., along with substantial amounts of hatchery feeds, premixes, and Artemia. Removing these duties, they argue, would show India’s commitment to fair trade and could lay the groundwork for reciprocal actions from the United States.
Mohan Raju emphasized that the proposed 26% reciprocal tariff—combined with the existing anti-dumping duty of 3.88% and a countervailing duty of 5.77%—poses a serious threat to the industry. Farmers across the country are already operating with minimal or no margins. Over 90% of them are small-scale or marginal farmers. Any further drop in farm-gate prices, he warned, would deepen the rural livelihood crisis and discourage continued shrimp production.
Export markets under pressure
According to Reuters, demand is drying up amid the uncertainty, with exporters slashing offer prices by about 10% following news of the tariffs.
“We’re suffering huge losses,” said 63-year-old S.V.L. Pathi Raju, who grows shrimp in Andhra Pradesh. He regrets having started shrimp cultivation just 15 days before the tariff news broke. Although Trump has delayed the 26% rate until July, the current 10% rate has already made exporters wary.
Exporters are especially concerned about Ecuador gaining a competitive advantage from Trump’s proposed 10% tariff rate for the South American country, which is geographically much closer to the U.S.—its second-largest shrimp market. Still, Ecuadorean producers, who shipped $1.55 billion worth of shrimp in 2024, are not overly optimistic.
G. Pawan Kumar, head of India’s seafood exporters group, told Reuters he’s concerned about containers of frozen shrimp already packed and shipped at pre-tariff prices now being subject to renegotiation by U.S. buyers.
“Ten percent is a big hit—we operate on margins of just 3% to 4%,” said Kumar, president of the Seafood Exporters Association of India. The group is pushing for the government to secure exemptions for the shrimp industry during ongoing trade talks with the U.S.
Industry leaders have joined a state government panel tasked with assessing the impact of the tariffs and exploring new export markets, including China. Moreover, media reports said India is among the first nations to initiate talks with the U.S. over a trade deal.
