US tariff cut brings cheer to aqua sector: Atchchanna

Vijayawada: There duction of the United States tariff on Indian seafood exports from 25 per cent to 18 per cent has come as a major relief to exporters and the aquaculture sector in Andhra Pradesh, said minister for agriculture, cooperation, marketing, animal husbandry, dairy development and fisheries K Atchannaidu said on Monday.

Welcoming the decision, taken under the India–US trade agreement, the minister said the tariff cut would significantly ease the burden on seafood exporters, particularly those engaged in aquaculture. He recalled that earlier, Indian seafood exports to the US were subjected not only to a 25 per cent tariff but also additional punitive duties, pushing the total tariff burden to 50–58 per cent.

As a result, between April and November 2025, India’s seafood exports to the US fell by about 15 per cent in volume to 2.01 lakh metric tonnes, while export value declined by 6.3 per cent to 1.72 billion dollars.

Frozen shrimp, India’s principal seafood export to the US, was the worst hit during this period, the minister noted. With the tariff now reduced to 18 per cent, the competitiveness of Indian seafood products in the US market has improved considerably. Stalled export orders are being revived, and favourable conditions have emerged for releasing consignments held up in bonded warehouses.

Atchannaidu said seafood exports to the US are expected to grow by 10–15 per cent in the coming months, with export volumes likely to return to pre-tariff levels by the second half of 2025–26.

Profit margins in the seafood processing sector, which had shrunk to 5–5.5 per cent during the high-tariff phase, are also expected to recover to 7–8 per cent following the tariff reduction. Duty concessions on key inputs announced in the Union Budget 2026 would provide additional support to the sector, he added.

While the US market shows signs of revival, exports to non-US markets such as the European Union, China, Vietnam, Russia and the United Kingdom have remained stable. In early 2025–26, non-US markets accounted for around 57 per cent of shrimp exports, reflecting effective market diversification.

For Andhra Pradesh, the country’s leading seafood-producing state, the tariff cut is a boon, the minister said. The recovery in exports will enhance income stability for farmers and fishermen, create more employment opportunities, and improve gross value addition (GVA) in the fisheries and aquaculture sectors. Citing MPEDA estimates, he said India’s total seafood exports are likely to reach 14–15 lakh metric tonnes in 2025–26, underlining the significance of the US tariff reduction for the sustainable growth of the sector.