Trump's tariffs may have caused a loss of Rs 25,000 crore to India's shrimp exporters, with up to half of the export orders facing cancellations, Andhra Pradesh Chief Minister N Chandrababu Naidu has said.
Chandrababu Naidu pegged the estimate in a letter to Finance Minister Nirmala Sitharaman, Commerce Minister Piyush Goyal and Fisheries Minister Rajiv Ranjan Singh, requesting government support for Andhra's aquaculture sector.
“The taxes imposed by America majorly hit shrimp exports. It is estimated that a loss of Rs 25,000 crore would have occurred. Up to 50 percent export orders have been cancelled,” Chandrababu Naidu said in the letter.
Andhra Pradesh makes up 80 percent of India's shrimp exports, worth over Rs 21,000 crore every year. During FY24, India exported record volume of seafood worth $7.38 billion, with USA and China being the major importers and frozen shrimp the largest export item, according to data from Marine Products Export Development Authority (MPEDA). During FY25, India shipped seafood worth Rs 62,408 crore ($7.45 billion).
Naidu has called for a Rs 100 crore corpus fund, cold storages, and seafood markets, adding that the state is ready to set up a shrimp producers' committee to ensure farm-to-market supply chains. The state government has also initiated support measures by getting aquaculture feed prices lowered by Rs 9 per kg and is considering subsidised power transformers for the farms. CM Naidu has also sought a one-time top-up loan of Rs 1 lakh under Kisan Credit Card scheme for the farmers.
This comes as the European Union approved 102 additional seafood processing and export units from India just days ago, a move that will boost seafood exports and position the nation as a trusted supplier.
"This milestone will enable us to scale our EU trade, empower our farmer partners, and reaffirm India’s leadership in sustainable aquaculture and seafood exports," Chairman and Managing Director of Kings Infra, Shaji Baby John said on September 10. EU-bound exports from India had reached Rs 9,430 crore ($1.12 billion) last fiscal, led by frozen shrimps among the leading items. India is also in discussions with the EU for a wider FTA, with the next round of discussions scheduled on October 6-10. The EU is the third largest export destination for Indian shrimps, with US and China being the top two markets, in terms of turnover. In terms of quantity, China has emerged as the largest seafood export destination from India.
CareEdge Ratings in a recent note had warned that if the current tariff levels persist, the hit on exports may be more pronounced next fiscal, and volumes may drop by up to 15 percent. India, along with Ecuador, Vietnam, Indonesia, Thailand, and China are the largest players in the global shrimp export market with a combined market share of around 75% in value terms and 74% in volume terms.
Despite the export levy, shares of Avanti Feeds and Kings Infra are higher by 10 percent and 5 percent respectively over the last one month, while shares of Waterbase are flat for the period.
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