India's Shrimp Export Crisis: Navigating Tariff Turbulence

In a bid to soften the economic blow, the Seafood Export Association of India has urgently appealed to the ministries of commerce and finance for emergency financial assistance. Traditionally a powerhouse within the agricultural export sector, the shrimp industry currently finds itself in precarious waters as US tariffs have surged to 50%, potentially disrupting $2 billion worth of shrimp exports.

K N Raghavan, Secretary General of the Association, expressed grave concern, noting the increased tariffs render Indian seafood significantly less competitive against exports from countries like China, Vietnam, and Thailand, which still benefit from lower duties of 20-30%. Raghavan indicated that competitors might seize the opportunity to lower their prices and dominate the market, while Indian exporters face the looming threat of additional penalties for contract breaches.

Moreover, the Association has requested a 30% increment in working capital through soft loans supported by interest subvention and a 240-day moratorium for pre- and post-packaging operations. With the risk of losing significant US market share, Raghavan emphasized the urgent need to explore alternative export markets. However, he cautioned that these efforts, including the recent trade deal with the UK, will take time to yield tangible results.

(With inputs from agencies.)