AP plea to Centre on shrimp exports

Vijayawada: Chief Minister N Chandrababu Naidu on Sunday wrote a letter to Union Minister of Commerce & Industry Piyush Goyal urging him to hold necessary discussions with the US government to include shrimp and aqua products in the exemption list from duties.

The fisheries sector plays a key role in the state's GDP and the US tariff hike could result in a blow for aqua farmers during this crisis, the CM said. Andhra Pradesh continues to play a pivotal role in India’s seafood export industry, especially in shipments to the United States. In the fiscal year 2023-2024, the state exported approximately 347,927 metric tons of seafood, valued at around USD 2.369 billion. This accounts for nearly 20% of India’s total seafood export volume and 32% of its total export value.

Frozen shrimp remains the backbone of Andhra Pradesh’s seafood sector, making up 94% of the state’s export volume and 97.55% of its export value during the period. However, the industry is currently grappling with significant challenges due to existing tariffs: a 5.77% countervailing duty and a 1.38% anti-dumping duty imposed by the US Department of Commerce. “This comes just ahead of the shrimp culture season, adding uncertainty and reducing confidence among farmers and hatcheries,” said G Pawan Kumar, President of the Seafood Exporters Association of India (SEAI).

Although India has seen a 16% increase in shrimp tariffs, it still fares better than competitors like Vietnam and Indonesia, which face duties of 46% and 32% respectively. Nonetheless, the narrow operating margins of 4–5% in the sector make it difficult for Indian exporters to absorb even this hike and remain competitive.

Currently, around 2,000 containers of seafood are en route to the US, with a similar number awaiting shipment in cold storages across the state. The projected financial impact on exporters is estimated at ₹600 crore. As most international contracts are based on delivery-at-doorstep terms, the additional tariff burden falls entirely on the exporters.

Lal Mohammed, Joint Director of the Andhra Pradesh Fisheries Department, said the AP government would convene stakeholder meetings to formulate a roadmap. “We are looking at diversifying export destinations, including China, South Korea, the European Union, and Australia. Additionally, we aim to boost domestic shrimp consumption and promote value-added products,” he said.