, August 10, 2025 —
The US has raised the import duty on Indian seafood exports to a steep 50%, delivering a severe blow to Andhra Pradesh’s shrimp industry. The tariff takes effect from August 27, following an earlier 25% levy implemented on August 7.
Tariff Shock & Rapid Price Drops
- The new tariff triggered a sharp crash in farm-gate shrimp prices—falling by *6–19% within a week. The most traded “40 count” variety now sells at roughly *₹365/kg, down from much higher levels.
- The sector faces potential export losses worth ₹24,000–₹25,000 crore, as U.S. buyers balk under soaring costs.
Andhra’s Shrimp Sector Reels Under Pressure
- Andhra Pradesh is the country’s leading shrimp producer, responsible for about 70% of India’s output and making up over 90% of its frozen shrimp exports.
- The US buys about 43% of Vannamei shrimp exports from India, with exports rising 2% in 2024.
- Stocks of major seafood exporters like Avanti Feeds and Waterbase fell up to 5% after the tariff announcement.
Urgent Calls for Government Support
Industry bodies and farmers urge swift government action. Options include exploring alternate markets—like the EU or UK—and securing subsidies or diplomatic relief to keep the sector solvent.