The global seafood trade has taken a severe hit, and Andhra Pradesh, India’s aquaculture hub, is bearing the brunt. Once celebrated as the backbone of India’s shrimp exports, the state is now struggling with massive losses triggered by steep tariffs imposed by the United States under the Trump administration.
According to government estimates, shrimp exporters from Andhra Pradesh are staring at a staggering loss of nearly ₹25,000 crore, as almost half of their export orders have been cancelled. Adding to the distress, nearly ₹600 crore in tariff burden has been levied on about 2,000 containers already in transit to the US.
Chief Minister N. Chandrababu Naidu has stepped in to highlight the crisis, making a fervent appeal to the Union Government for urgent relief measures to safeguard aqua farmers and the families dependent on this sector.
US Tariffs Push Aqua Industry into Distress
The tariff hike has been punishing. After successive announcements, the cumulative tariff has touched 59.72 per cent. This includes:
- A 25% additional tariff (over an earlier 25%),
- A 5.76% countervailing duty, and
- A 3.96% anti-dumping duty.
Such trade barriers have hit the Andhra aquaculture industry hard, as the state accounts for 80% of India’s shrimp exports and 34% of overall marine exports, valued at approximately ₹21,246 crore annually.
The sector supports about 2.5 lakh aqua farmer families and nearly 30 lakh individuals engaged in allied activities such as feed, processing, transport, and cold storage. The ripple effect of these tariffs has triggered widespread financial distress across coastal Andhra Pradesh.
Naidu’s Appeal to the Centre
Chief Minister Naidu has written to multiple Union ministers — Finance Minister Nirmala Sitharaman, Commerce & Industry Minister Piyush Goyal, and Fisheries Minister Rajeev Ranjan Singh — urging them to take a multi-pronged approach to protect aqua farmers and exporters.
He recommended:
- Relief in GST: A temporary waiver of the 5% GST on frozen shrimp.
- Financial Packages: Interest subsidies, a 240-day moratorium on loan repayments, and extended credit support for exporters.
- Market Diversification: Negotiating Free Trade Agreements (FTAs) with the European Union, South Korea, Saudi Arabia, and Russia to reduce over-dependence on the US market.
- Boosting Domestic Consumption: Launching initiatives to promote seafood consumption within India to absorb surplus supply.
State-Level Interventions Already in Motion
Naidu also highlighted relief efforts already initiated by the state government. After consultations with aqua feed producers, the MRP of aqua feed has been reduced by ₹9 per kg, offering some respite to farmers. Additionally, the government is working on subsidised supply of transformers to reduce input costs.
However, Naidu emphasised that state-level steps alone are insufficient to cushion such a massive financial blow. He stressed that only decisive intervention at the national level, supported by policy reforms and international negotiations, could safeguard the future of the industry.
The Road Ahead
Andhra Pradesh’s dominance in shrimp exports means that the crisis in this sector has national implications. If corrective measures are not taken swiftly, India risks losing its global competitiveness in seafood exports to rivals like Vietnam and Ecuador, who are aggressively capturing international markets.
The CM’s appeal serves as a stark reminder of the vulnerability of farmers and exporters to global trade policies. As the US tariffs continue to squeeze margins, the question remains: will the Centre step in to provide the much-needed lifeline to India’s aqua economy?
#AndhraPradesh #ShrimpExports #AquaFarmers #TradeWar #TrumpTariffs #SeafoodIndustry #MarineExports #GSTRelief #NaiduAppeal #GlobalTrade #FisheriesCrisis #AquaEconomy #FreeTradeAgreements