It urged the industry to pivot to alternative markets and highlighted opportunities in the EU, Japan, Korea, Russia, Australia

Indian Seafood Exporters Urged to Diversify as US Tariffs Pose 'Doomsday' Scenario

INDIA
Tuesday, August 12, 2025, 05:00 (GMT + 9)

The Indian government has called on seafood exporters to "bravely face" the challenge of crippling tariffs in the United States and to explore new markets. The move comes as the industry faces a potential business loss of nearly ₹24,000 crore ( which is ₹240,000,000,000, is approximately $2,640,000,000 USD) to the US, its largest market.

US Tariffs Escalate, Hitting Exporters Hard

The US has imposed a cumulative tariff of 59.71% on Indian seafood, primarily frozen shrimp, which includes countervailing and anti-dumping duties along with a new 50% tariff announced by President Donald Trump as a penalty for India’s continued purchase of Russian oil. This has put Indian exporters at a significant disadvantage compared to competitors like Ecuador, Vietnam, and Thailand, who face much lower tariffs.

Pawan Kumar G, president of the Seafood Exporters Association of India (SEAI), described the situation as "doomsday for the seafood industry," warning that it would also affect farmers. The industry, which employs an estimated 20 million people, fears that a high tariff will make Indian products uncompetitive, leading to a significant loss of market share. Some buyers have already started putting orders on hold, and exporters are facing losses on existing inventory.

Government's Strategy: Diversification and Infrastructure Upgrades

In a meeting with exporters and stakeholders, Union Minister for Fisheries, Animal Husbandry and Dairying Rajiv Ranjan Singh Lalan urged the industry to pivot to alternative markets. He highlighted opportunities in the European Union (EU), Japan, South Korea, Russia, Australia, and other Southeast Asian countries. The government has also stressed the importance of improving value addition, processing, and packaging to meet the demands of these new markets. The recently signed Free Trade Agreement (FTA) with the UK was also mentioned as a potential avenue for growth in the fisheries sector.

To support this shift, the government is focusing on several initiatives:

• Infrastructure Development: Exporters were encouraged to use the Fishery Infrastructure Development Fund to upgrade their facilities.

• MPEDA’s Role: The Marine Product Export Development Authority (MPEDA) has been tasked with assisting exporters in four major producing states to identify new markets and modernize their infrastructure.

• Single-Window System: The government is working to develop a single-window system to streamline market linkages and strengthen fishing in High Seas and Exclusive Economic Zones.

• PMMSY Suggestions: Exporters have also made suggestions to be included in the Pradhan Mantri Matsya Sampada Yojana (PMMSY) to further boost exports.

Financial Aid and Long-Term Solutions

The SEAI has formally requested emergency financial support from the ministries of commerce and finance. The proposed measures include a 30% increase in working capital through soft loans with interest subvention and a 240-day moratorium for packaging operations to help the industry weather the crisis. While the government has not yet committed to a financial package, it has emphasized that it will not compromise on the interests of farmers.

India production of farmed shrimp. Andhra Pradesh (in blue) remained India's leading shrimp-producing state

Impact on Andhra Pradesh

Andhra Pradesh, which accounts for 60% of India’s shrimp exports and where over 10 lakh families (1 million families) are dependent on the sector, has been hit particularly hard. Rama Shankar Naik, Commissioner of Fisheries, Andhra Pradesh, noted that the state government is now considering measures to increase domestic seafood production. The state's previous share of 35% in the EU seafood imports has already declined to 11% due to concerns over residue levels, making diversification an even more critical strategy.

editorial@seafood.media
www.seafood.media

Print