Shrimp Exporters Face Turbulence as US Tariffs Surge

India's shrimp export industry is bracing for a significant setback as US import tariffs rise sharply to 58.26% from August 27, a Crisil Ratings report indicated. This fiscal year, export volumes are expected to contract by 15-18%, hitting revenue hard.

Despite attempts to adapt by altering product mixes and seeking new export destinations, the sector faces declining revenues. Previously stagnant revenue is projected to fall by 18-20% year-on-year, even with a boost from early shipments made in anticipation of the tariff increase.

The heightened tariffs place India at a competitive disadvantage to nations like Ecuador and Vietnam, whose tariffs remain much lower. Consequently, the unfavorable conditions are likely to dampen operating margins and put considerable strain on the exporters' debt protection metrics.

(With inputs from agencies.)