Photo: Stockfile/FIS

Russian Demand Rescues India's Shrimp Sector from US Tariff Shock

INDIA
Thursday, October 09, 2025, 00:10 (GMT + 9)

Nellore's aquaculture industry, reeling from a nearly 60% duty imposed by the US in August 2025, sees a surge in exports to Russia, growing from 10% to nearly 40% of the region's total shipments.

NELLORE, ANDHRA PRADESH – The aqua industry in Nellore, once the vibrant epicenter of Andhra Pradesh's "blue revolution," is showing strong signs of recovery thanks to a rapid market pivot to Russia. This diversification has provided a crucial lifeline after the sector was severely impacted by crippling tariffs imposed by the United States in 2025.

The turbulence began in August 2025 when the US, formerly the largest buyer of Indian seafood, imposed a cumulative tariff of nearly 60% on Indian shrimp exports. This figure, combining existing anti-dumping and countervailing duties with a new 50% duty, was a massive blow, especially since the US alone absorbed nearly 48% of India's $5 billion shrimp exports in FY 2024-25. The fallout was immediate: industry sources indicate that shrimp cultivation acreage in the region, including coastal belts like Juvvaladinne and Muthukur, plummeted from an estimated 80,000 acres to just 40,000 acres, leading to processing unit shutdowns and job losses.

The Russian Lifeline

Exporters in Nellore confirm that the Russian market has become the key to stabilizing the region. Shipments to Russia, which historically accounted for only 10% of the region's total exports, have now surged to nearly 40%.

“This diversification has given us a lifeline. The Russian market's consistent demand has stabilized prices and revived confidence among farmers,” said major exporter S Nagesh.

Nellore district, officially known as Sri Potti Sriramulu Nellore district in Coastal Andhra Region, is one of the 26 districts in the Indian state of Andhra Pradesh -->

This dramatic shift is helping to offset the losses and is enabling local processors to resume operations. K Venkateswarlu, another exporter, noted, "Our plant once employed 700 workers, but we had to reduce staff after the tariff crisis. Now, with new export orders from Russia, we're hopeful of restoring full-scale operations soon."

Currently, the district operates eight major seafood processing units, which collectively employ thousands of workers, primarily women and an estimated 3,000 migrant labourers. The revival in export orders is directly reversing the job losses. Farmer P Ramu of Muthukur mandal confirmed, "For the past year, we were uncertain whether to continue shrimp cultivation. But the recent export recovery has encouraged us to restart operations in our ponds.”

Government Strategy and Global Outlook

This successful pivot aligns with the Indian government's broader strategy to diversify its seafood export base. Union Minister Shri Rajiv Ranjan Singh Lalan had previously urged exporters to "bravely face" the US challenge by exploring new markets, including the European Union, China, Japan, South Korea, and Russia.

A senior official from the Department of Fisheries affirmed the government's commitment, stating, “The revival in exports is a positive sign for both employment and rural income. We are working with hatcheries and farmers to ensure better seed quality, disease control, and sustainable practices.”

Beyond market redirection, industry experts like those at Crisil have emphasized the long-term need for India's shrimp sector to pivot toward value-added formats—such as peeled, cooked, and ready-to-cook shrimp—to secure higher margins and reduce vulnerability to bulk commodity price wars. The focus on markets like Russia is a critical first step in this necessary structural reset for India's seafood exports.

editorial@seafood.media
www.seafood.media

Print