US tariffs on Indian shrimp: Andhra Pradesh reports Rs 25,000 crore loss, 50% orders cancelled

A sharp increase in US import tariffs has triggered a severe crisis in Andhra Pradesh’s seafood sector. The state has suffered an estimated Rs 25,000 crore in cancelled shrimp export orders, according to a report by The Indian Express.

Chief Minister N Chandrababu Naidu has urgently sought intervention from the central government to support the beleaguered industry.

Tariff burden cripples exports



The crisis stems from tariffs imposed by the administration of US President Donald Trump. The cumulative duty on Indian shrimp now stands at a staggering 59.72 per cent.

This includes a recent 25 per cent additional tariff layered on top of an existing 25 per cent duty. A 5.76 per cent countervailing duty and a 3.96 per cent anti-dumping duty are also in effect.

This massive tariff burden, amounting to nearly Rs 600 crore on roughly 2,000 shipping containers, has made Indian shrimp uncompetitive in the crucial American market. The Indian Express reported that approximately half of all export orders from the state were cancelled as a direct result.

Chief Minister seeks Central relief



In a bid to mitigate the widespread distress, Chief Minister Naidu has written to three Union ministers. His letters to Finance Minister Nirmala Sitharaman, Commerce Minister Piyush Goyal and Fisheries Minister Rajeev Ranjan Singh detail a request for comprehensive support.

Naidu appealed for immediate financial packages to indemnify aqua farmers against their losses. He also proposed a temporary waiver of the 5 per cent Goods and Services Tax (GST) levied on frozen shrimp.

Furthermore, he asked the Centre to facilitate crucial bank support for exporters and aquaculture companies. This includes a 240-day moratorium on loan and interest repayments and the provision of interest subsidies.

A state-wide economic threat



The stakes are extraordinarily high for Andhra Pradesh. The state is a powerhouse in seafood exports, accounting for 80 per cent of India’s shrimp exports and 34 per cent of its total marine exports.

This trade is valued at approximately Rs 21,246 crore annually. The industry provides a livelihood for an estimated 30 lakh people who depend on shrimp exports and allied activities within the state.

The state government has already initiated some relief measures. These include reducing the price of aqua feed by Rs 9 per kilogram and considering subsidies for transformers used in aquaculture.

Pushing for new global markets



Beyond immediate financial aid, Chief Minister Naidu’s letters emphasised a longer-term strategic shift. He urged the Union government to aggressively diversify India’s seafood export markets to reduce dependency on the US.

He specifically called for the pursuit of Free Trade Agreements (FTAs) with key economic blocs and nations. These include the European Union, South Korea, Saudi Arabia and Russia, The Indian Express reported.

Naidu noted that Indian exporters are prepared to supply seafood to the EU. He sought the Centre’s support in making this transition and asked for clarity on existing tariff and tax relief schemes.