India’s shrimp industry is seeking urgent government intervention after the United States hiked tariffs on imports, threatening nearly $2 billion worth of annual seafood exports.
The Seafood Export Association of India (SEAI) has approached the commerce and finance ministries, requesting a 30% increase in working capital via soft loans, interest subvention to cover margins, and a 240-day moratorium on pre- and post-shipment financing.
The plea follows U.S. President Donald Trump’s decision last week to raise reciprocal tariffs on Indian shrimp from 25% to as high as 50%, sharply eroding the sector’s competitiveness against rivals such as China, Vietnam, and Thailand, which face duties of only 20–30%.
India exported $2.8 billion worth of shrimp to the U.S. in 2024 and has already shipped $500 million this year. SEAI Secretary General K. N. Raghavan warned that losing market share to Asian competitors could be inevitable, as they can cut prices while Indian exporters face contractual penalties—up to 40%—if they attempt to reroute shipments.
“The only alternative is to explore five new markets, but that will take time. Even the free trade deal with the UK, though signed, won’t be implemented immediately,” Raghavan said.
The tariff escalation threatens one of India’s most valuable agricultural export sectors, which supports millions of livelihoods across coastal states and is a key contributor to foreign exchange earnings.